Legislature(1997 - 1998)

04/30/1997 05:00 PM House FSH

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
               HOUSE SPECIAL COMMITTEE ON FISHERIES                            
                          April 30, 1997                                       
                             5:00 p.m.                                         
                                                                               
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Alan Austerman, Chairman                                       
 Representative Mark Hodgins                                                   
 Representative Ivan Ivan                                                      
 Representative Gene Kubina                                                    
 Representative Scott Ogan                                                     
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 All members present                                                           
                                                                               
 OTHER HOUSE MEMBERS PRESENT                                                   
                                                                               
 Representative Eldon Mulder                                                   
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 *HOUSE RESOLUTION NO. 8                                                       
 Relating to Cook Inlet fisheries enhancement projects on Tustumena            
 Lake on the Kenai National Wildlife Refuge.                                   
                                                                               
      - MOVED HR 8 OUT OF COMMITTEE                                            
                                                                               
 *HOUSE BILL NO. 149                                                           
 "An Act relating to the management of salmon fisheries; and                   
 providing for an effective date."                                             
                                                                               
      - HEARD AND HELD                                                         
                                                                               
 (* First public hearing)                                                      
                                                                               
 PREVIOUS ACTION                                                               
                                                                               
 BILL:  HR 8                                                                   
 SHORT TITLE: TUSTUMENA LAKE FISHERIES ENHANCEMENT PROJ                        
 SPONSOR(S): SPECIAL COMMITTEE ON FISHERIES                                    
                                                                               
 JRN-DATE      JRN-PG             ACTION                                       
 04/24/97      1323    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 04/24/97      1323    (H)   FISHERIES                                         
 04/28/97              (H)   FSH AT  5:00 PM CAPITOL 124                       
 04/28/97              (H)   MINUTE(FSH)                                       
 04/30/97              (H)   FSH AT  5:00 PM CAPITOL 124                       
                                                                               
 BILL:  HB 149                                                                 
 SHORT TITLE: PREFER CONSUMPTIVE USE SALMON FISHERIES                          
 SPONSOR(S): REPRESENTATIVE(S) KOHRING, Masek, Mulder, Cowdery                 
                                                                               
 JRN-DATE      JRN-PG             ACTION                                       
 02/19/97       399    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 02/19/97       399    (H)   FSH, RESOURCES, FINANCE                           
 02/27/97       519    (H)   COSPONSOR(S): COWDERY                             
 04/23/97      1307    (H)   SPONSOR MOTION TO WITHDRAW-WITHDRAWN              
 04/28/97              (H)   FSH AT  5:00 PM CAPITOL 124                       
 04/28/97              (H)   MINUTE(FSH)                                       
 04/30/97              (H)   FSH AT  5:00 PM CAPITOL 124                       
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 CHUCK MEACHAM, Fisheries Analyst                                              
    for the House/Senate Majority                                              
 533 Main Street                                                               
 Juneau, Alaska 99801                                                          
 Telephone:  (907) 463-3335                                                    
 POSITION STATEMENT:  Provided testimony on HR 8 on behalf of                  
                      Representative Gail Phillips.                            
                                                                               
 DENNIS RANDA, President                                                       
 Alaska Council of Trout Unlimited                                             
 P.O. Box 3055                                                                 
 Soldotna, Alaska 99669                                                        
 Telephone:  (907) 262-9494                                                    
 POSITION STATEMENT:  Provided testimony in opposition to HR 8.                
                                                                               
 THOMAS WALKER, Special Projects Manager                                       
 Cook Inlet Aquaculture Association                                            
 HC 2, Box 849                                                                 
 Soldotna, Alaska 99669                                                        
 Telephone:  (907) 283-5761                                                    
 POSITION STATEMENT:  Provided testimony in support of HR 8.                   
                                                                               
 DALE BONDURANT                                                                
 HC 1, Box 1197                                                                
 Soldotna, Alaska 99669                                                        
 Telephone:  (907) 262-0818                                                    
 POSITION STATEMENT:  Provided testimony in opposition to HR 8.                
                                                                               
 ROD BERG                                                                      
 266 Redwood Court                                                             
 Soldotna, Alaska 99669                                                        
 Telephone:  (907) 262-6064                                                    
 POSITION STATEMENT:  Provided testimony in opposition to HR 8.                
                                                                               
 ROBERT HALL                                                                   
 P.O. Box 871906                                                               
 Wasilla, Alaska 99687                                                         
 Telephone:  Not provided                                                      
 POSITION STATEMENT:  Provided testimony in opposition to HR 8.                
                                                                               
 BRUCE KNOWLES                                                                 
 P.O. Box 873206                                                               
 Wasilla, Alaska 99687                                                         
 Telephone:  (907) 745-4965                                                    
 POSITION STATEMENT:  Provided testimony in opposition to HR 8.                
                                                                               
 DREW SPARLIN                                                                  
 37010 Cannery Road                                                            
 Kenai, Alaska 99611                                                           
 Telephone:  (907) 283-4095                                                    
 POSITION STATEMENT:  Provided testimony in support of HR 8.                   
                                                                               
 BRENT JOHNSON, President                                                      
 Kenai Peninsula Fisherman's Association                                       
 HC 2, Box 508                                                                 
 Clam Gulch, Alaska 99568                                                      
 Telephone:  (907) 262-4763                                                    
 POSITION STATEMENT:  Provided testimony in support of HR 8.                   
                                                                               
 GERON BRUCE, Legislative Liaison                                              
 Office of the Commissioner                                                    
 Department of Fish and Game                                                   
 P.O. Box 25526                                                                
 Juneau, Alaska 99802-5526                                                     
 Telephone:  (907) 465-6143                                                    
 POSITION STATEMENT:  Provided testimony on HR 8.                              
                                                                               
 REPRESENTATIVE VIC KOHRING                                                    
 Alaska State Legislature                                                      
 Capitol Building, Room 421                                                    
 Juneau, Alaska 99801                                                          
 Telephone:  (907) 465-2186                                                    
 POSITION STATEMENT:  Sponsor of HB 149.                                       
                                                                               
 ED CRANE, Officer                                                             
 Alaska Seafood Council                                                        
 P.O. Box 91239                                                                
 Anchorage, Alaska 99509-1239                                                  
 Telephone:  (907) 276-2007                                                    
 POSITION STATEMENT:  Provided testimony on HB 149.                            
                                                                               
 ROBERT HALL                                                                   
 P.O. Box 871906                                                               
 Wasilla, Alaska 99687                                                         
 Telephone:  Not provided                                                      
 POSITION STATEMENT:  Provided testimony on HB 149.                            
                                                                               
 BRUCE KNOWLES, President                                                      
 Guide Association                                                             
 P.O. Box 873206                                                               
 Wasilla, Alaska 99687                                                         
 Telephone:  (907) 745-4965                                                    
 POSITION STATEMENT:  Provided testimony on HB 149.                            
                                                                               
 STEVE STROMME, Commercial Fisherman                                           
 P.O. Box 22985                                                                
 Juneau, Alaska                                                                
 Telephone:  (907) 790-2061                                                    
 POSITION STATEMENT:  Provided testimony against HB 149.                       
                                                                               
 JERRY McCUNE                                                                  
 United Fishermen of Alaska                                                    
 211 Fourth Street, Suite 112                                                  
 Juneau, Alaska 99801                                                          
 Telephone:  (907) 586-2820                                                    
 POSITION STATEMENT:  Provided testimony on HB 149.                            
                                                                               
 EMMET HEIDEMANN                                                               
 P.O. Box 770061                                                               
 Eagle River, Alaska 99577                                                     
 Telephone:  (907) 694-4479                                                    
 POSITION STATEMENT:  Provided testimony in opposition to HB 149.              
                                                                               
 MARGO SHERWOOD, Domestic Engineer                                             
 1640 Brink Drive                                                              
 Anchorage, Alaska 99504                                                       
 Telephone:  (907) 333-6268                                                    
 POSITION STATEMENT:  Provided testimony in support of HB 149.                 
                                                                               
 DON SHERWOOD, President                                                       
 Alaska Boating Association                                                    
 1640 Brink Drive                                                              
 Anchorage, Alaska 99504                                                       
 Telephone:  (907) 333-6268                                                    
 POSITION STATEMENT:  Provided testimony in support of HB 149.                 
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 97-19, SIDE A                                                            
 Number 0001                                                                   
                                                                               
 CHAIRMAN ALAN AUSTERMAN called the House Special Committee on                 
 Fisheries meeting to order at 5:00 p.m.  Members present at the               
 call to order were Representatives Austerman, Hodgins, Ivan and               
 Ogan.  Representative Kubina arrived at 5:08 p.m.                             
                                                                               
 HR 8 - TUSTUMENA LAKE FISHERIES ENHANCEMENT PROJ                              
                                                                               
 CHAIRMAN AUSTERMAN announced the first order of business to come              
 before the House Special Committee on Fisheries would be HR 8,                
 "Relating to Cook Inlet fisheries enhancement projects on Tustumena           
 Lake on the Kenai National Wildlife Refuge."                                  
                                                                               
 Number 0064                                                                   
                                                                               
 CHUCK MEACHAM, Fisheries Analyst for the House/Senate Majority, was           
 the first person to testify in Juneau.  He said he was testifying             
 on behalf of Representative Gail Phillips and she offers her strong           
 support for the passage of the resolution.  He read the following             
 statement into the record:                                                    
                                                                               
 "HR 8 supports Cook Inlet Aquaculture Association's efforts to                
 secure a permit to continue its valuable scientific work directed             
 towards the enhancement of sockeye salmon production for in                   
 commercial, recreational and personal use fisheries.  Cook Inlet              
 Aquaculture Association has operated its salmon stocking program              
 since 1976.  That's 20 years now.  The legislature did pass a                 
 similar resolution of support during the permitting process back in           
 1985.                                                                         
                                                                               
 "The U.S. Fish and Wildlife Service is conducting an Environmental            
 Assessment of this project in conjunction with the Kenai National             
 Wildlife Refuge permit renewal process.  Speaker Phillips                     
 respectfully requests that the Fisheries Committee continue to                
 support enhancement efforts on the Tustumena Lake by passing HR 8."           
                                                                               
 Number 0179                                                                   
                                                                               
 REPRESENTATIVE MARK HODGINS asked if he is correct in saying that             
 this a pilot project for 20 years and if the resolution was an                
 encouragement of the project.                                                 
                                                                               
 Number 0209                                                                   
                                                                               
 MR. MEACHAM stated the project had been on going for 20 years.  The           
 level of egg take is approximately 13,000,000 from about 9,000                
 adults.  Approximately half or 6,000,000 of the eggs are returned             
 to the Bear Creek area from where the eggs were taken.                        
                                                                               
 Number 0285                                                                   
                                                                               
 DENNIS RANDA, President, Alaska Council of Trout Unlimited, was the           
 first person to testify via teleconference in Kenai.  He said the             
 council is the largest cold water conservation organization in the            
 world.  Mr. Randa said his organization has had communications with           
 the commissioner of the Alaska Department of Fish and Game over               
 this and other hatchery implications over the years.  They have               
 asked that the department look into the implications of stock and             
 hatchery programs for weakened wild stocks in the area that would             
 effect increased harvest opportunities for commercial fishing.  Mr.           
 Randa said they have yet to receive adequate responses from the               
 commissioner.  The council's greatest concern is the implications             
 associated with the increased harvest opportunity of sockeye salmon           
 on the wild run of Kasilof River Chinook salmon wild runs.  The               
 sport fishery has been curtailed on that fishery and the department           
 is not making an effort to gather information.  The council is                
 concerned about the genetic implications of further driving the               
 stocks down and the unknown impact due to commercial fishing.                 
                                                                               
 MR. RANDA informed the committee that he attended a genetics                  
 conference in Juneau and they are looking at the implications of              
 genetic of these stocks.  Mr. said the state's geneticist indicated           
 that if many projects around the state had been under the permit              
 process at this time, as opposed to when they were permitted 20               
 years ago, they might not have been permitted by the department.              
 Therefore, he would like to see more information before jumping               
 into this wholeheartedly.  He said he doesn't believe that it is in           
 the state's best interest to proceed with this project.  The Alaska           
 Council Trout Unlimited was opposed to the resolution as worded.              
 He urged the committee members to enhance the department's budget             
 so that some of these questions could be answered.  There are too             
 many question marks to continue to follow down these roads.                   
                                                                               
 Number 0524                                                                   
                                                                               
 THOMAS WALKER, Special Projects Manager, Cook Inlet Aquaculture               
 Association, was the next person to testify via teleconference in             
 Kenai.  He said the project had been on going for 20 years at its             
 current scale since 1988.  It benefits a number of different user             
 groups from the Cook Inlet area.  The project has been looked at by           
 the states' geneticist who recommended some changes of which the              
 association is prepared to accept.  Mr. Walker informed the                   
 committee that his association has also consulted with the                    
 management biologists in the area and was told the project would              
 not drive the decision of management along the east side beach of             
 Cook Inlet.  In short, the association has put a lot of time into             
 the project.  It required permits from the Kenai National Wildlife            
 Refuge and the Department of Fish and Game to continue.  The                  
 association feels this is a project with a track record and                   
 sufficient scrutiny.  He thanked the committee considering HJR and            
 urged passage.                                                                
                                                                               
 Number 0681                                                                   
                                                                               
 DALE BONDURANT was the next person to testify via teleconference              
 from Kenai.  He testified in opposition to HR 8.  The Tustumena               
 Lake is very turbulent and nutrient poor.  Therefore, hatchery fish           
 could add to the competition of the natural stocks - dolly varden,            
 lake trout, white fish, sockeye and coho.  The hatchery harvest is            
 of a higher percentage than the native stocks, thus allowing for a            
 smaller percentage to return to the lake.  There are less carcasses           
 to help recharge the food chain and nutrients.  This could impinge            
 upon the coho.  There is also the eventual inbreeding of the                  
 genetic pools of the natural stocks, and the tendency of the fish             
 to stray as happened in the Crooked Creek Hatchery.  The continued            
 introduction of hatchery stock in the Upper Cook Inlet is highly              
 irresponsible and is not justified.  Hatchery stocks are well known           
 for disease potential.  Native stocks needed only to be managed on            
 a sustained yield principle for all the different discrete stocks.            
 The Tustumena Hatchery enhancement should not be continued are                
 there are just too many potential problems.                                   
                                                                               
 Number 0845                                                                   
                                                                               
 ROD BERG was the next person to testify via teleconference from               
 Kenai.  He testified in opposition to HR 8.  He said he does not              
 believe that the project is legal because it was being conducted on           
 the Kenai National Wildlife Refuge.  The cost recovery of harvest             
 opportunities means exclusive use by a special interest group -               
 commercial fishermen.  He said he doesn't believe recreational or             
 personal users have ever asked for this project.  Mr. Berg said               
 "additional opportunities" provided to these groups is always used            
 to legitimize an enhancement project that is going through the                
 permitting process.  He said, "We are providing extra opportunities           
 to the public so it's okay that we commercial users enhance this              
 fishery for our own personal gain."  Mr. Berg said it provides an             
 artificial increase in the number of fish going through the sonar             
 counters, but at what cost.  He questioned where the funding is               
 coming from for this project and said he objects strongly to                  
 recreational users indirectly funding this type of commercial                 
 project.  Mr. Berg said, "Even more serious ramifications are                 
 these:  The commercial fisheries south of the Blanchard line are              
 having a huge negative impact on the recreational fisheries north             
 of the Blanchard line because of the emergency commercial openings            
 promulgated by the escapement exceed minimum and optimum numbers of           
 fish on the spawning beds.  This artificial commercial enhancement            
 project should be eliminated all together.  The only people who               
 seem to think we need more sockeye salmon are commercial                      
 gillnetters and the Cook Inlet Aquaculture Association."  Mr. Berg            
 informed the committee that stock affected negatively by this                 
 project are July run Kenai kings, sockeyes, August run silvers on             
 the Kasilof and Kenai River, and all east side streams north of the           
 Blanchard line.  The Tustumena project has been conducted for only            
 one user group - commercial fishermen.  The time has come to                  
 disband and discontinue the project entirely.                                 
                                                                               
 Number 1036                                                                   
                                                                               
 ROBERT HALL was the next person to testify, via teleconference from           
 Mat-Su, in opposition to HR 8.  He said he is not speaking in                 
 opposition to commercial fishermen, but in opposition to the                  
 interception.  Mr. Hall said one of the dangers they have                     
 experienced in the Mat-Su Valley and in Cook Inlet is when you                
 artificially inflate a species, the harvest of those salmon, by its           
 nature, increases the intercept of other wild stocks, particularly            
 northern district salmon.  He cited 90 percent of the silver salmon           
 intercepted in Cook Inlet are headed for northern district streams,           
 and 80 percent of the harvested silver salmon are also headed up to           
 the Mat-Su Valley.  The commercial fishing industry has got to                
 recognize that it is destroying the runs in the Mat-Su.  He cited             
 the escapement goals are substantially down on the Cottonwood                 
 Creek, Jim Creek and Wasilla Creek.  The state has failed to meet             
 the escapement goals on the Susitna River 12 out of the past 16               
 years.  There has been testimony after testimony over the last five           
 to ten years about the diminishing returns in the Mat-Su River,               
 especially the silvers and kings which can be directly attributed             
 to the fact that we have an intercept of stocks in the central                
 district.  To increase the intercept is absolutely crazy.  "How               
 much do we have to suffer?" he asked.  At some point, the                     
 responsibility to the resources has to stop this type of crazy                
 fisheries enhancement.  He thanked the committee members for their            
 time.  Mr. Hall urged the committee to vote against the resolution.           
                                                                               
 Number 1194                                                                   
                                                                               
 BRUCE KNOWLES was the next person to testify via teleconference in            
 Mat-Su.  He spoke in opposition to HR 8.  He said they are losing             
 the salmon runs in the Susitna Valley.  He informed the committee             
 that he has filed a grievance with the Office of the Ombudsman for            
 the way the salmon are being managed at the mouth of Fish Creek.              
 The Board of Fisheries, in November, elected to allow the fishery             
 to continue when it was targeting hatchery fish to the detriment of           
 native stocks.  The Governor and the Lieutenant Governor have both            
 stated that the most important thing is to manage wild stocks.  He            
 declared, "Any time we have a hatchery stock that is detriment to             
 native stocks, it's against the law to harvest them."                         
                                                                               
 Number 1297                                                                   
                                                                               
 DREW SPARLIN was the next person to testify via teleconference from           
 Kenai.  He spoke in support of HR 8.  He indicated that since the             
 start of the project, there has been a change in management and the           
 development of a personal use fishery.  The 6,000,000 fry released            
 in the area are determined to be fairly insignificant in the sense            
 that it does not alter the management scheme.  He said he would               
 like to encourage the committee to support HR 8 as the project is             
 very worthwhile.                                                              
                                                                               
 Number 1415                                                                   
                                                                               
 BRENT JOHNSON, President, Kenai Peninsula Fisherman's Association,            
 was the next person to testify via teleconference in Kenai.  He               
 spoke in support of HR 8.  The association is a group of over 400             
 setnetters in the Kenai area.  The association has found that the             
 program is very helpful to them because it contributes to part of             
 their catch every year.  He said every year more and more                     
 information has been gained.                                                  
                                                                               
 CHAIRMAN AUSTERMAN closed the public hearing on HR 8.                         
                                                                               
 CHAIRMAN AUSTERMAN called Geron Bruce, Department of Fish and Game,           
 to the table.                                                                 
                                                                               
 REPRESENTATIVE SCOTT OGAN stated there were concerns raised about             
 the susceptibility of the hatchery fish to disease and the disease            
 spreading to the wild stocks.  He asked Mr. Bruce if it was a                 
 legitimate concern.                                                           
                                                                               
 Number 1537                                                                   
                                                                               
 MR. BRUCE, Legislative Liaison, Office of the Commissioner,                   
 Department of Fish and Game, replied the Infectious Hematopoietic             
 Necrosis Virus or IHN virus is a concern, but there are practices             
 in place to prevent and detect an outbreak.  He said he is not                
 aware of it being a major problem on the Tustumena Lake.                      
                                                                               
 Number 1577                                                                   
                                                                               
 REPRESENTATIVE OGAN asked Mr. Bruce at what point should we say it            
 might not be a good idea to continue producing more fish,                     
 especially when there was an over abundance affecting the market              
 and the price.                                                                
                                                                               
 Number 1610                                                                   
                                                                               
 MR. BRUCE replied that was a difficult question to answer.  Salmon            
 production is currently worldwide and it is increasing                        
 dramatically.  For example, he said he recently read that farm                
 salmon production has increased 16 percent in one year.  It would             
 be difficult to isolate Alaska's production and predict what impact           
 a change in that production will have on worldwide prices.  Mr.               
 Bruce said there are two factors.  One is maintaining market share            
 and the other is price - value for what you do have.                          
                                                                               
 Number 1670                                                                   
                                                                               
 REPRESENTATIVE OGAN explained there is a fear in his district.  He            
 said, "There is a fear that the more fishery produced, there more             
 pressure there is going to be when there is a large return -- that            
 the fish are predominately managed for the Kenai River and when               
 there is a big return, there is more openings.  The more openings             
 there is less fish in my district."  He asked Mr. Bruce if that is            
 a valid concern, in his opinion.  Representative Ogan said he                 
 thinks the Upper Cook Inlet fisheries are managed somewhat by                 
 default, driven by the return on the Lower Cook Inlet.                        
                                                                               
 Number 1708                                                                   
                                                                               
 MR. BRUCE replied he certainly hears the concerns expressed by the            
 people from the Mat-Su Valley.  The department attempts to manage             
 all of the salmon returning to the Cook Inlet basin.  It is a                 
 difficult and complicated job to manage all of these runs.  There             
 is only one index in the Susitna River and the department would               
 like to do more work there.  The area is important to the                     
 department and they are trying to manage them as well as they can.            
                                                                               
 Number 1774                                                                   
                                                                               
 REPRESENTATIVE OGAN asked Mr. Bruce to comment on the impact of the           
 diminishing runs in the Upper Cook Inlet area, especially the                 
 concern of them becoming endangered.  He asked if there would be a            
 detrimental affect on commercial fishing in Cook Inlet?                       
                                                                               
 Number 1810                                                                   
                                                                               
 MR. BRUCE replied it would be a very serious matter if they were              
 determined to be an endangered species.  The state does recognize,            
 however, there are stocks that are not producing as well as the               
 department would like, but they are a long way from being                     
 endangered.                                                                   
                                                                               
 Number 1851                                                                   
                                                                               
 REPRESENTATIVE HODGINS asked Mr. Bruce what the cost is to the                
 state for this particular salmon enhancement project.                         
                                                                               
 Number 1861                                                                   
                                                                               
 MR. BRUCE replied he doesn't believe there is a cost to the state.            
 He said he believes it is a project that is being undertaken by the           
 Cook Inlet Aquaculture Association.  There is an indirect cost to             
 the state in that the state pathology lab looks at the fish to                
 ensure they are disease free.  Mr. Bruce said he believes the cost            
 of the actual stocking problem is being borne by Cook Inlet                   
 Aquaculture.                                                                  
                                                                               
 Number 1904                                                                   
                                                                               
 REPRESENTATIVE OGAN asked Mr. Bruce how many late run Kasilof kings           
 were left.                                                                    
                                                                               
 Number 1916                                                                   
                                                                               
 MR. BRUCE replied he didn't currently know the number, but would              
 get back to him.                                                              
                                                                               
 REPRESENTATIVE OGAN stated he is concerned how an enhanced fishery            
 in Kasilof would impact native late run kings.  He would appreciate           
 Mr. Bruce getting back to him.                                                
                                                                               
 Number 1956                                                                   
                                                                               
 REPRESENTATIVE HODGINS made a motion to move HR 8 out of committee            
 with individual recommendations and with the attached fiscal notes.           
                                                                               
 Number 1980                                                                   
                                                                               
 REPRESENTATIVE OGAN objected.  He and his constituency is concerned           
 that an enhanced fishery could have a negative impact on his                  
 district.                                                                     
                                                                               
 CHAIRMAN AUSTERMAN asked for a roll call vote.  Representatives               
 Hodgins, Ivan and Austerman voted in favor of the motion.                     
 Representative Ogan voted against the motion.  House Resolution 8             
 was moved from the House Special Committee on Fisheries with                  
 individual recommendations.                                                   
                                                                               
 HB 149 - PREFER CONSUMPTIVE USE SALMON FISHERIES                              
                                                                               
 Number 2057                                                                   
                                                                               
 CHAIRMAN AUSTERMAN announced the committee would hear HB 149                  
 "An Act relating to the management of salmon fisheries; and                   
 providing for an effective date."                                             
                                                                               
 REPRESENTATIVE VIC KOHRING, Sponsor of HB 149, came before the                
 committee to present the bill.  He informed the committee that                
 there have been some problems with the rivers and streams in Mat-Su           
 in that over the years, there have been dramatic decreases in the             
 returns of salmon.  This has been an ongoing problem and it seems             
 to be getting increasingly worse.  He noted as far as the economy,            
 the Mat-Su depends on the sports fishing industry to a large                  
 degree.  There is a direct correlation between the diminished runs            
 of fish the rivers and the impact on the economy, from the store              
 owner to the bait and tackle shop owner to the gas station owner to           
 the hotel owner, etc.  He said, "They all are negatively impacted             
 by the diminished numbers of people that go to the Mat-Su that fish           
 our rivers when there are fish that (indisc.) - fish that the Fish            
 and Game do not permit to be caught as a result of restrictions               
 that have been placed on our rivers -- restrictions such as the               
 numbers of fish allowed to be caught, restrictions such as the use            
 of artificial lures in lieu of bait, restrictions in terms of the             
 numbers of days you're allowed to fish during the week or the                 
 numbers of hours, things of that nature."                                     
                                                                               
 REPRESENTATIVE KOHRING said there are some very frustrated                    
 constituents in the whole Southcentral Region as a result of the              
 problems out there.  He stated the constituents are frustrated                
 because it seems like people aren't acting to deal with the                   
 problem.  They initially looked to the Board of Fisheries to                  
 resolve this problem.  As a result of the lack of action by the               
 Administration and the Board of Fisheries, a petition was                     
 circulated which resulted in over 28,000 signatures from people who           
 are demanding that we get more fish in our rivers.  He said the               
 vehicle put forth to try and achieve that objective was the                   
 F.I.S.H. (fairness in salmon harvest) Initiative.                             
                                                                               
 REPRESENTATIVE KOHRING said the bill is, for the most part,                   
 reflective of that F.I.S.H. Initiative.  He said the reason he                
 introduced the legislation is because the initiative that he hoped            
 would be on the November ballot was struck down by the supreme                
 court.  The court decided this was an unconstitutional issue, as              
 far as the public putting forth the initiative, and they said it is           
 the role of the legislature to decide on allocation issues.  He               
 said HB 149 is essentially the same bill he introduced last session           
 which died as a result of the Nineteenth Alaska Legislature running           
 out of time.                                                                  
                                                                               
 REPRESENTATIVE KOHRING explained the intent of the legislation is             
 to direct the Board of Fisheries to give first priority of the fish           
 resource to the personal consumptive user.  He noted consumptive              
 user would defined as the sports fishermen, the personal use                  
 individual and also the subsistence user.  Representative Kohring             
 said there is concern about sustained yield concept as we want to             
 make sure we get enough salmon migrating back to the rivers so that           
 they reproduce.  He said the bill directs that the Board of                   
 Fisheries give that priority to the personal consumptive user after           
 the sustained yield escapement goals.                                         
                                                                               
 REPRESENTATIVE KOHRING explained that what he is trying to achieve            
 with HB 149 is more fish.  He said currently, the sports fishermen            
 roughly gets about 1 percent of the entire resource.  The personal            
 consumptive user, as a whole, gets roughly 3 percent.  The                    
 commercial fish operator gets 97 percent.  Representative Kohring             
 said he is talking about a small amount of the resource for the               
 vast majority of the people who are the sports fishermen and the              
 personal user.                                                                
                                                                               
 REPRESENTATIVE KOHRING said he understands there were over 300,000            
 people who bought the 1996 sports fishing license.  He said, "If we           
 want to quantify, in terms of how many fish, just to put it in                
 layman's terms, what would 5 percent represent.  It's been                    
 calculated out that if we achieve that goal, it would be roughly 17           
 fish, per season, per sports fisherman, and we don't think that's             
 very unreasonable at all."  Representative Kohring said he would              
 like to point out that the bill is confined to the Cook Inlet                 
 Region.  He noted the legislation doesn't make reference to the               
 fact that it deals only with those areas in the state of Alaska               
 that have 500,000 angler days per year.  As it currently stands, it           
 is just the Cook Inlet Region that has that kind of activity.                 
                                                                               
 REPRESENTATIVE KOHRING said they are not against the commercial               
 industry, they are just looking for a more fair share of the                  
 resource.  He said he thinks it is in everyone's best interest that           
 we do get more fish into the rivers because of the sustained yield            
 concept.  Representative Kohring said he thinks the direction that            
 we're going is the same as Washington, Oregon and California where            
 they depleted the resources to the extent where there were no fish            
 going back into the rivers to reproduce.  Now there are many rivers           
 that are dead.  He noted he is very concerned that is the direction           
 that Cook Inlet is going.                                                     
                                                                               
 REPRESENTATIVE KOHRING said the problem is not really with the                
 number of fish.  He said it is his understanding that we have near            
 records of numbers of fish that are migrating up in the Lower Cook            
 Inlet and are being caught by commercial fishermen, yet at the same           
 time, we're seeing almost near records of returns in the rivers of            
 the Mat-Su.  He referred to there being a direct correlation in               
 that there are massive amounts of fish, but they're not getting               
 beyond a point.  The salmon that are migrating up Cook Inlet are              
 being intercepted by the commercial fishing fleet.  He noted the              
 commercial fishing fleet would include the setnetters as well as              
 the driftnetters.                                                             
                                                                               
 Number 2413                                                                   
                                                                               
 CHAIRMAN AUSTERMAN said he has had discussions with Representative            
 Kohring regarding the bill and the implications it would have to              
 the overall fishery policies of the state of Alaska.  He noted they           
 also discussed holding hearings during the interim.  The hearings             
 that will be held will center on where the Alaska fisheries will be           
 in 10 to 15 years from now.  Chairman Austerman said Alaska                   
 fisheries are our most valuable and prolific natural resource.                
 Fisheries is the number two tax base in Alaska.                               
                                                                               
 TAPE 97-19, SIDE B                                                            
 Number 0001                                                                   
                                                                               
 CHAIRMAN AUSTERMAN said the committee will hold a number of                   
 hearings all over the state after the salmon industry has closed              
 down for the season.  He indicated he has chosen the fall so that             
 there will be participation from all user groups.                             
                                                                               
 Number 0063                                                                   
                                                                               
 REPRESENTATIVE OGAN referred to the interim hearings and said one             
 thing that should be kept in mind is the fact that there will be an           
 eminent takeover of navigable waters by the federal government on             
 October 1.                                                                    
                                                                               
 CHAIRMAN AUSTERMAN said hopefully, there will be a solution before            
 then.  He pointed out commercial fishing currently is a large tax             
 base to the state of Alaska and that everybody understands the                
 sportfish industry is relatively new to the state.  He referred to            
 Representative Kohring's purpose statement and said it seems to him           
 that it removes commercial fishing out of Cook Inlet which is a big           
 tax base.                                                                     
                                                                               
 Number 0128                                                                   
                                                                               
 REPRESENTATIVE KOHRING responded, "Certainly it would result in               
 less of a commercial catch and less dollars from that aspect of the           
 economy.  However, when we're talking about the commercial industry           
 still getting a lion's share of that resource, and we still feel              
 that would be roughly 95 percent if this legislation were to become           
 law, they're still going to have a lion's share of those dollars              
 that are going to be captured, you know, from that industry.  As              
 far as the economic impact, that would be a sports industry hazard            
 in Southcentral Alaska.  I think that should be noted as well."  He           
 said there are a lot of dollars that flow through the economy as a            
 result of expenditures that relate to the sport fish industry.                
                                                                               
 Number 0172                                                                   
                                                                               
 REPRESENTATIVE ELDON MULDER referred to Chairman Austerman making             
 reference to the fact that commercial fishing is such a large part            
 of the state tax base and said he thinks that point is                        
 challengeable in the sense that there are those who would argue               
 that commercial fishing doesn't even pay its own way.  He said,               
 "When you consider that a great amount of that they pay actually              
 goes back to the local communities, it would be nice if I could do            
 that and I could pay my property taxes through whatever business I            
 was employed in, but I don't see that as adding to the state's                
 economy."                                                                     
                                                                               
 REPRESENTATIVE MULDER said he has another point in relation to the            
 local impacts in Southcentral Alaska.  He informed the committee              
 members that there was a study done by the Institute of Social and            
 Economic Research (ISER) which analyzed the net impact of sport               
 fish caught versus the commercial fish caught.  At that point in              
 time, they basically said the study was a wash.  He said that may             
 have been the situation and you can argue the merits of the study,            
 but if you hold that the study is at all correct you would                    
 recognize the fact that the sport fishing industry is one that's              
 growing throughout Southcentral Alaska, has huge opportunity for              
 expansion, has huge economic opportunity in relation to the                   
 creation of jobs and has a tremendous potential benefit to                    
 Southcentral Alaska in the larger picture.  Representative Mulder             
 said if you're looking at the commercial fishing industry today               
 versus the commercial fishing industry ten years from now, he                 
 thinks that you'll see that sport fishing offers Southcentral                 
 Alaska far greater economic opportunity and advantage than                    
 commercial fishing does.                                                      
                                                                               
 Number 0173                                                                   
                                                                               
 CHAIRMAN AUSTERMAN said he would clarify his statement.  Commercial           
 fishing is the number two tax base, under oil, of tax revenues for            
 the state of Alaska.  He said, "How the legislature has taken that            
 money and allocated it is the debate that you're making right now."           
                                                                               
 Number 0296                                                                   
                                                                               
 REPRESENTATIVE HODGINS referred to the bill and asked what the                
 mechanism is that allows the fish to get to the sport fish industry           
 and when there would be commercial fishing.                                   
                                                                               
 Number 0320                                                                   
                                                                               
 REPRESENTATIVE KOHRING said he won't even attempt to give any                 
 detail as far as how the mechanism would work because it would be             
 his assumption that the Department of Fish and Game, through the              
 board, would make those decisions.  He said he would put his faith            
 and trust in the department and board in that they would make the             
 proper judgements and see that the program is carried forward.                
                                                                               
 REPRESENTATIVE HODGINS asked Representative Kohring what the intent           
 of the bill is.                                                               
                                                                               
 Number 0350                                                                   
                                                                               
 REPRESENTATIVE MULDER responded saying the intent, when the bill              
 was written, was to have the department make a determination of the           
 demand by the common consumptive users, subsistence, personal use             
 and sport fish.  That information would be provided to the Board of           
 Fisheries where they would establish the allocation to satisfy                
 those needs.  At the point and time within the management                     
 structure, the Department of Fish and Game could manage the catch             
 rates in relation to allowing that number of fish to escape up the            
 river systems, to ensure that those levels are going to escape,               
 while at the same time providing for reasonable commercial harvest            
 opportunity.  Representative Mulder said he thinks the mechanism is           
 there.  It's the directive or desire of the department to have some           
 direction about how they're supposed to proceed.  He stated the               
 legislation gives the department directive that there be up to 5              
 percent of fish reserved for the common consumptive users.                    
                                                                               
 REPRESENTATIVE HODGINS said there is already a mechanism in place             
 for the natural escapement for sustainable yield.  He said                    
 basically the bill just sets a percentage that maybe hasn't been              
 set before for the escapement.                                                
                                                                               
 REPRESENTATIVE MULDER responded that was correct.                             
                                                                               
 Number 0437                                                                   
                                                                               
 CHAIRMAN AUSTERMAN stated that this is an allocation bill no matter           
 how you look at it.  He said Representative Kohring indicated that            
 sponsors of the bill are not satisfied with the allocation issue.             
 The allocation has taken place on the board level, so it is                   
 currently at the legislative level to take a look and decide what             
 to do with it.  He then referred to Section 2 and said it deals               
 with the management of Alaska salmon stocks.  Subsection (a) deals            
 with the management of sustained yield, which they all agree with.            
 Chairman Austerman read from subsection (b) "The Board of Fisheries           
 shall adopt regulations establishing methods and means of taking              
 salmon that protect salmon spawning and rearing habitat from damage           
 that may, individually or cumulatively, result in significant                 
 reduction in the productivity of salmon stocks."  He then asked               
 Representative Kohring to explain the wording of (b).  Chairman               
 Austerman also indicated he was uncertain whether cumulative                  
 affects refers to downstream fisheries or included habitat.                   
                                                                               
 Number 0502                                                                   
                                                                               
 REPRESENTATIVE KOHRING referred to the first part of Chairman                 
 Austerman's question and said in terms of attempting to protect the           
 habitat with this language, he would expect that through the                  
 regulatory process, the Board of Fisheries would do everything in             
 their power to protect the habitat of the spawning beds so that the           
 there is the enhancement of fisheries to the extent of achieving              
 our sustained yield goals.  He said the answer to the first                   
 paragraph is an effort to protect the habitat for the sustained               
 yield purpose.                                                                
                                                                               
 CHAIRMAN AUSTERMAN referred to Section 3 of HB 149 and said it gets           
 into the area of the 500,000 angler days per year.  He said it is             
 his understanding that Southeast Alaska currently has that level              
 for fishing.  Potentially, the Dillingham and Bristol Bay area is             
 also potentially getting close to that right now.  He asked                   
 Representative Kohring if he has looked at this.                              
                                                                               
 Number 0579                                                                   
                                                                               
 REPRESENTATIVE KOHRING explained his intent of the legislation is             
 to just focus on Cook Inlet.  Given the increasing fishing pressure           
 of that river system, he thinks it would be safe to say that number           
 is higher at this point.  He noted he wouldn't have a problem                 
 adjusting that number accordingly so they can continue to just                
 focus on the Cook Inlet Region.                                               
                                                                               
 REPRESENTATIVE MULDER referred to the last review of the angler               
 effort in Southeast Alaska and said he believes it was somewhere              
 over 300,000 days.  It was substantially less and it was projected            
 that it would take longer to reach that figure.  Unless he had                
 incorrect information or that there has been dramatic increased               
 pressure, it was not necessarily the intention to exclude other               
 regions that were emerging as a potential for inclusion within the            
 bill.  He said when you try to write a statute like this one, you             
 recognized that at some point there is a threshold that you reach             
 and you say, "Well at this point, effort is growing so much we are            
 now seeing a shift in focus of where the economic benefit begins."            
 Representative Mulder explained that the end user is now creating             
 more economy for the state of Alaska if it goes to the personal               
 consumptive user than it is for the commercial user.  He stated he            
 differs, in that regard, to Representative Kohring.  Representative           
 Mulder said with the level within the bill, he thinks it still only           
 impacts Cook Inlet, but eventually it could effect the other area.            
 That is only in accordance with the fact that those areas are                 
 increasing under pressure in relation to the economic opportunity.            
                                                                               
 Number 0685                                                                   
                                                                               
 CHAIRMAN AUSTERMAN explained that as an informational point, he               
 thinks there will be questions.  He referred to the economic                  
 differences between commercial fishing, sport fishing and personal            
 use and said he thought there was a study done last year on the               
 Kenai area showing the economic value between commercial fish and             
 sport fish.  If he remembers correctly, there was a balance where             
 they found that both commercial industries provided about same                
 amount of economic benefit.                                                   
                                                                               
 REPRESENTATIVE MULDER said that is correct and that was the ISER              
 study he referred to.  The economic benefit, as they determined,              
 was about wash at this point in time.  He said, "That is why we               
 looked at this being more/less the threshold number because                   
 certainly the pressure for personal consumptive users is growing              
 within that region, whereas the evaluation of fish and fish                   
 products of salmon, specifically in relation to commercial fishing,           
 is diminishing worldwide."                                                    
                                                                               
 Number 0745                                                                   
                                                                               
 CHAIRMAN AUSTERMAN said another thing in that section is the                  
 migration route.  He stated that if he is reading the section                 
 correctly, with the migration route language in the bill, there is            
 a potential that Chignik, Kodiak and every other fishery would                
 close down until the 5 percent figure was reached statewide or                
 cumulatively.  The Cook Inlet area would take the 5 percent before            
 the other fisheries would open.  He noted that is his perception of           
 reading the bill.                                                             
                                                                               
 REPRESENTATIVE MULDER stated that potential does exist.  He said              
 Chairman Austerman is reading the bill potentially correct.                   
                                                                               
 Number 0824                                                                   
                                                                               
 CHAIRMAN AUSTERMAN referred to Kodiak and said it would allow the             
 sport fish industry to continue to fish in Kodiak, but it might               
 close down the whole commercial industry.  He said he thinks this             
 is something that needs to be addressed.                                      
                                                                               
 REPRESENTATIVE OGAN referred to the language and said he believes             
 it would be very difficult, if not impossible, to quantify.  He               
 said, "What is spurring a lot of this is the Deshka River crash of            
 the king salmon has probably gotten this going more than anything             
 and the department has been in there for several years trying to              
 get wire coded tags in the heads of the smolt and they can't find             
 the doggone things."  He stated the other side is that there is the           
 bycatch of chinook in pollock catches, from the Bering Sea, where             
 tags have been collected for a number of years, but nobody has ever           
 compiled the data to find out where they're coming from.  He said             
 the committee should review that language to see if it is even                
 possible to enforce.  He noted he doesn't think it is.                        
                                                                               
 Number 0849                                                                   
                                                                               
 REPRESENTATIVE MULDER said there is an emerging intercept fishery             
 developing off of Kodiak which has commercial user battling                   
 commercial user.  The point is that in times of abundance, they               
 would be able to do an intercept fishery and still ensure that                
 there will be enough fish that would return.  In times of low                 
 return, the potential for commercial shutdown does exist.  It is              
 very difficult when you have an emerging fishery that is growing              
 that wants more and more of a slice of that pie.                              
                                                                               
 CHAIRMAN AUSTERMAN said, "My guess is that the crux of this bill is           
 what we're talking about right now when we really get down to the             
 differences between sport fishing and commercial fishing - how we             
 come to a really rational decision on how to do this because when             
 you have mixed stock fisheries, which has been going on for eons -            
 ever since people started fishing here, it's been a mixed stock               
 fishery."  He referred to the reports that came from the coded wire           
 tag study that was done in 1994, around Kodiak Island, on Cook                
 Inlet tags, not one Cook Inlet tag showed up on the Kodiak catch.             
                                                                               
 Number 1014                                                                   
                                                                               
 REPRESENTATIVE KOHRING said it is hard for him to imagine that the            
 Department of Fish and Game would actually take extreme measures.             
 He referred to the 5 percent total and said it is a very small                
 piece of the overall resource to achieve that goal.  He said he               
 doesn't think that there will have to be drastic action to the                
 extent of the Department of Fish and Game shutting down some of the           
 migratory paths.  The fishing industry would have to be awfully               
 depressed to reach the point where some of the migratory routes               
 would be shut down.                                                           
                                                                               
 CHAIRMAN AUSTERMAN said he tends to agree with Representative                 
 Kohring, although the potential is there.  He said things like that           
 would have to be defined tightly in relation to when the 5 percent            
 will be reached and whether it would be projected on what has                 
 already gone by Kodiak and the other areas.                                   
                                                                               
 REPRESENTATIVE HODGINS said he would like to hear from the                    
 Department of Fish and Game.                                                  
                                                                               
 CHAIRMAN AUSTERMAN said the definitions have to come about somehow            
 so everyone understands exactly where they are and what they are              
 doing.  He said that is the reason why the committee is having                
 discussion.                                                                   
                                                                               
 Number 1162                                                                   
                                                                               
 REPRESENTATIVE KOHRING thanked Chairman Austerman for hearing the             
 bill.                                                                         
                                                                               
 Number 1251                                                                   
                                                                               
 ED CRANE, Officer, Alaska Seafood Council, came before the                    
 committee to present his testimony.  He said his organization                 
 consists of individuals, companies and other nonnatural entities              
 from every segment of the seafood business in Alaska.  He noted it            
 includes not only harvesters and crew members, but processors,                
 cannery workers, suppliers.  Mr. Crane informed the committee they            
 have 20 corporate or institutional members and just under 1,900               
 individual members.  He said the council members depend entirely on           
 commercial fishing for a living, but he is also a recreational                
 fisherman and has a particular distant fondness for the Deshka                
 River.  He urged that the legislature not mess with allocation                
 issues.  There is an established process.  He indicated it may be             
 imperfect and frustrating to many people, it is an advocacy process           
 and is based upon advice, guidance, science from the professional             
 managers and it is a process which has been in place for many                 
 years.  Over the years, despite the warts and pimples, it has                 
 displayed an ability to deal with its own problems.  To intrude               
 this legislature, or any legislature, into that process may give              
 certain people some momentary pleasure or satisfaction, but it's a            
 bottomless pit for the legislature to get into.                               
                                                                               
 MR. CRANE said as he looks at the legislation and the F.I.S.H.                
 initiative, harsh words come to mind such as "deception."  There              
 has been discussion about only 5 percent which isn't very much.  He           
 said about a year ago, he looked at data relative to the Upper Cook           
 Inlet salmon fisheries, which was available from the Department of            
 Fish and Game.  He noted he looked specifically at information of             
 for the five species of salmon from 1990 through 1994.  During                
 those five years, sport fishermen caught 89.3 percent of the king             
 salmon, 33.6 percent of coho, 7.7 percent of sockeye, 22.3 percent            
 of pinks and 7.1 percent of chum.  He said for all five species,              
 13.5 percent were caught by sports fishermen.  Mr. Crane said he              
 finds it very difficult to understand why we want to go to only 5             
 percent when there is a record like that to look at.  He noted he             
 doesn't see how or why legislation like this should go anywhere               
 until it is made clear exactly what the supporters want and how and           
 why.                                                                          
                                                                               
 MR. CRANE referred to numbers from the Department of Fish and Game            
 and said between 1984 and 1994, resident sport fish licenses                  
 increased from 178,000 to 183,000, which is less than 3 percent.              
 Non-resident sport fishing licenses increased over that same ten-             
 year period from 115,000 to 227,000, which is 97 percent increase.            
 In 1993, the Department of Commerce, Division of Tourism, did a               
 visitors survey and found that 6 percent of the visitors to Alaska            
 cited fishing as their primary reason for coming to Alaska.  He               
 said it is not the mainstay of the tourism business for Alaska.               
 Mr. Crane said those 6 percent were asked to rate, on a scale of 1            
 through 7, their satisfaction of their fishing experience in                  
 Alaska.  They rate Southcentral fishing at 5.7.                               
                                                                               
 MR. CRANE showed committee members information dated September 4,             
 1996, which listed names, addresses, telephone numbers, of 149 non-           
 resident owned sport fishing lodges and guides from 26 states and             
 two foreign countries.  He said there are issues that must be                 
 addressed.  He said he doesn't think they can be addressed on the             
 basis of emotion and finger pointing.  We have to do something                
 more, in terms of working together, to identify problems.                     
                                                                               
 MR. CRANE informed the committee members he is a recreational pilot           
 and during the late 1980s and early 1990s, he would often fly over            
 the upper regions of the Deshka and some of the other Mat-Su                  
 steams.  He said he doesn't believe that what happened to the                 
 Deshka had anything to do with commercial fishing in the upper Cook           
 Inlet.                                                                        
                                                                               
 Number 1815                                                                   
                                                                               
 REPRESENTATIVE HODGINS referred to the 149 people that were from              
 out of state and question how many are from the state.                        
                                                                               
 MR. CRANE informed the committee the total list, as he recalls, was           
 right around 1,100 or slightly more than 10 percent were non-                 
 residents.                                                                    
                                                                               
 Number 1838                                                                   
                                                                               
 REPRESENTATATIVE MULDER asked what the percentage is of nonresident           
 commercial fishermen and what the percentage is for nonresident or            
 non state owned processors.                                                   
                                                                               
 MR. CRANE said his recollection is as far as limited entry permits.           
                                                                               
 AN UNIDENTIFIED SPEAKER indicated the percentage was 76 percent.              
                                                                               
 REPRESENTATIVE MULDER said, "Obviously there is a is a higher                 
 percentage of nonresident commercial fishermen than there are                 
 guides - or more than double."                                                
                                                                               
 MR. CRANE said he was trying to say that there is more to this than           
 just the emotion involved.                                                    
                                                                               
 REPRESENTATIVE OGAN said he would like to remind Mr. Crane that it            
 is the legislature's prerogative to get into allocation issues as             
 the supreme court has said so.  He said there is a lot of energy              
 and emotion behind this issue.                                                
                                                                               
 Number 2037                                                                   
                                                                               
 ROBERT HALL was next to testify via teleconference from Mat-Su.  He           
 said 28,000 Alaskans signed the F.I.S.H. Initiative petition to put           
 this on the ballet and let Alaskans vote.  He continued, "This                
 right was yanked from us by the supreme court and the supreme court           
 said that this is the legislature's responsibility and only they              
 could put this on the ballot or only they could pass a law."                  
                                                                               
 MR. HALL explained that years ago, the legislature established a              
 priority for subsistence.  He said he is asking to establish a                
 second level of priority for other noncommercial activities.  The             
 polls show that overwhelmingly Alaskans support a higher allocation           
 of salmon to consumptive users.  No matter how you look at it, you            
 have to look a the bottom line, there is a basic fundamental                  
 disagreement about who owns the salmon.  Commercial fishermen have            
 invested tremendous amounts of money and time, they own a limited             
 entry permit and they believe that those salmon belong to them.               
 The rest of the Alaskans believe that the fish are owned by all               
 Alaskans and that we're all entitled to a fair share, hence the               
 title of the F.I.S.H. Initiative with the fairness in salmon                  
 harvest.  He stated, "If that's the fundamental objective that                
 everybody is looking for, we'll be able to reach it.  However, if             
 you believe that you own the salmon or if you have pressures of               
 making a boat payment next year and you have all the pressures that           
 you have from other competing factors, whether they be from Norway            
 or the Valley of the (indisc.), you sometimes look at the F.I.S.H.            
 Initiative and say `Ah, this is just one more straw on my back,'              
 and Alaskan is pitted against Alaskan.  It is a very divisive                 
 situation.  I don't think there is one of you who could honestly              
 stand up and say, `The Board of Fish is a nonpolitical situation.'            
 And yet that is who is managing and allocating the fish today, a              
 very political board and honestly, bottom line, it's been dominated           
 by commercial fishing interests since statehood and that has really           
 frustrated noncommercial fishermen."                                          
                                                                               
 MR. HALL continued, "There is this talk about the commercial                  
 fishing industry versus the sport fishing industry in dollars and             
 value, and that's all well and good.  But really for personal use             
 and sport fishermen, especially Alaskans - those who have grown up            
 here, sports fishing is part of our lifestyle.  It's part of who we           
 are.  You know, taking your children fishing, it's part of why we             
 put up with these long winters and short days in the winter, it's             
 because fishing and sport fishing is really part of who Alaskans              
 are.  And when we're denied a fair opportunity, and the testimony             
 and the evidence, a fair opportunity to sport fish, especially in             
 the Mat-Su is abundant, and that frustration that Mr. Kohring spoke           
 about earlier is what prompted this F.I.S.H. Initiative, and when             
 we're denied that fair opportunity, this is the result.  And I                
 think until the commercial fishing industry is willing, or maybe              
 some of the legislators that represent the commercial fishing                 
 areas, are willing to look at the fundamental fact that we have a             
 problem with inequity and this is very political and that we have             
 an unfair allocation scheme and that we need to work for fairness.            
 The bottom line, as Governor Knowles said, we need to put more fish           
 in these Mat-Su rivers."                                                      
                                                                               
 MR. HALL said the Mat-Su doesn't have the political strength and              
 critical will that the commercial fishing industry does throughout            
 the state of Alaska.  He said there is a problem in the Mat-Su and            
 we are sacrificing the lifestyles and the people of the Mat-Su for            
 the dollar of commercial fishermen.  Mr. Hall said we are looking             
 for fundamental fairness of who owns these salmon and to protect              
 the lifestyles of the residents and the future generations of the             
 children of Alaska.                                                           
                                                                               
 Number 2438                                                                   
                                                                               
 BRUCE KNOWLES, President, Guide Association, testified via                    
 teleconference from Mat-Su.  He informed the committee members he             
 was a sponsor for the F.I.S.H. Initiative and believes strongly in            
 what they are doing.  Mr. Knowles said he feels that Alaskans had             
 this initiative stolen away from us by the supreme court of Alaska.           
 He questioned why there is a need for this bill and said immediate            
 steps have to be taken to protect our endangered salmon runs to               
 ensure that biological statement goals are being met.                         
                                                                               
 TAPE 97-20, SIDE A                                                            
 Number 0006                                                                   
                                                                               
 MR. KNOWLES said, "Farmed fish make up 40 to 50 percent of the                
 market today.  What's it going to be in ten years?  Last year, we             
 had so many pink salmon that they could not be sold and the state             
 of Alaska allowed the roe to be stripped out of these pink salmon.            
 This is the first time that's ever happened because they could not            
 sell the fish from the hatchery.  Commercial fishermen and                    
 hatcheries currently owe the state over $100 million in loans with            
 very little being paid back.  A Wall Street article, last year,               
 stated that up to 400 commercial fishermen could default on their             
 loans this coming year.  My question is, `How much does the                   
 hatcheries owe and how much have they paid?'  Hatcheries currently            
 owe $92 million and have not repaid their loan.  Commercial                   
 fishermen insist that they are being targeted, they are being                 
 reduced, their hours are being reduced that they can fish, yet in             
 1996, they caught two million more fish in Cook Inlet than they did           
 in 1941."                                                                     
                                                                               
 MR. KNOWLES continued to give his testimony, "Consumptive users               
 have had many restrictions placed on them.  Season limits on king             
 salmon have been placed on sports fishermen in Cook Inlet.                    
 Commercial fishermen do not have any limit on the number of kings             
 that they can take up over the hill and take to the processor.                
 Sports fishermen have had their tackle reduced, hours restricted,             
 rivers closed during king season and other seasons.  In some areas,           
 large sections of the day have been closed where no fishing is                
 allowed at all.  Guides have been restricted from taking out                  
 clients on certain days.  Personal use fishermen were forced off              
 the beach and into the streams because they did not want the                  
 competition with commercial fishermen.  And in the Knik Arm, it was           
 stated that they were moved off the beach and into the streams                
 because they were taking fish headed to streams that were having              
 problems with their returns and were endangered of losing their               
 runs.  Major changes have been made to rainbow, char and grayling             
 limits and fishing requirements in Cook Inlet.  This is do to low             
 numbers.  Could this be because of insufficient food?  Ask me how             
 many salmon runs failed to meet their BEGs.  Ask me how much data             
 is available in Upper Cook Inlet.  We are behind the power curve,             
 folks, we need to get something done and the F.I.S.H. Initiative I            
 feel will do it."                                                             
                                                                               
 Number 0252                                                                   
                                                                               
 CHAIRMAN AUSTERMAN said meetings that will be held, statewide, in             
 the fall will also include the Board of Fisheries.  There are                 
 currently a number of proposals as to whether the Board of                    
 Fisheries is doing the right job and that will all come within                
 where we're going to be in 10 or 15 years with our fisheries.  The            
 hatcheries will also be included.  Chairman Austerman said the                
 committee will talk about not only commercial fishing versus sports           
 fishing, but also the Alaskan fish resource and how we're going to            
 make sure it is a viable resource.                                            
                                                                               
 Number 0294                                                                   
                                                                               
 REPRESENTATIVE HODGINS said he believes the committee will also be            
 talking about a resolution regarding a ballot issue for limited               
 entry for sport fisheries guiding.                                            
                                                                               
 CHAIRMAN AUSTERMAN indicated that resolution was recently                     
 introduced.  He noted HB 19, which just passed the House, will also           
 be addressed as it is part of the overall fisheries the committee             
 is discussing.                                                                
                                                                               
 Number 0350                                                                   
                                                                               
 STEVE STROMME, Commercial Fisherman, came before the committee                
 members to testify in opposition to HB 149.  He said he has been a            
 commercial fisherman all of his adult life.  Mr. Stromme said the             
 bill will impact people like him, his children and his ex-wife who            
 he has to pay support to.  Mr. Stromme informed the committee he              
 grew up in Oregon and has fished in Oregon, Washington, California,           
 Good News Bay, Bristol Bay and just all up and down the West Coast.           
 He said he doesn't believe the problems of Oregon and Washington              
 are the problems of Alaska.  He said his first boat was repossessed           
 in Oregon, he was there and knows what happened there.  It is not             
 the same as Alaska.                                                           
                                                                               
 Number 0445                                                                   
                                                                               
 JERRY McCUNE, United Fishermen of Alaska, came before the committee           
 members to give his testimony.  He stated this issue goes very                
 deep.  Mr. McCune said he would like to clarify the 5 percent                 
 figure that is in the bill.  He said this is one of the hardest               
 things to understand, even when we had the F.I.S.H. Initiative on             
 the ballot.  He said, "It says 5 percent of the statewide salmon              
 harvest projection."  Mr. McCune continued, "What that is, is 150             
 million to 200 million fish.  So the pinks and chums are driving              
 the numbers up high.  You take 5 percent, that's 6 to 10 million              
 fish.  Now you want to talk about fair, that's 1,000 percent                  
 increase in the sport fishing.  That's how they're coming up with             
 this number."                                                                 
                                                                               
 MR. McCUNE said the number is based on the statewide projection               
 which gives you 6 to 10 million fish and that's not the way to                
 manage fish.  You can't just say, "We're going to put 6 million               
 fish in the Kenai River next year for all the other users and                 
 everybody else would have to hold back until that number is in                
 there."  He said it won't work like that as the river will be                 
 devastated.                                                                   
                                                                               
 MR. McCUNE referred to some of guides suggesting that commercial              
 fishing is the problem.  He said you have to look further than just           
 commercial fishing.  The sport fishery has grown a lot over the               
 last ten years.  We have to look at all aspects, commercial, person           
 use, sports fishing and the guides.  He said, "From ten years ago,            
 I've taken more salmon as a commercial fishermen because basically            
 where I fish, the runs have been higher.  We've had record runs.              
 But also on the other end, it's grown to the use that's gotten very           
 high on how much they're taking.  So if there is a big problem in             
 the Mat-Su, I'll be right along the sports fishermen or anybody               
 else to say if those streams are really that devastated as they're            
 telling me, then I'll get together with them and we'll try to                 
 figure out what's going on with that system because there isn't a             
 fisherman in this state that would want to see a system go down.              
 That's detrimental to my income and everybody else's interest and             
 the sports fisherman that has just as much interest as I do in                
 taking their salmon home."                                                    
                                                                               
 MR. McCUNE said he, as a commercial fisherman, has a real problem             
 giving up his livelihood for somebody else that's making a living             
 off the resource, and that's guides.  Until that problem is                   
 resolved and we've come to a level on the rivers that everybody can           
 live with, it is very unfair to keep pointing at the commercial               
 fishing industry.  He indicated he is willing to sit down with Mr.            
 Knowles or anybody else to discuss if there is a problem.  If there           
 is a problem then we should get Fish and Game up to the Mat-Su and            
 figure out what that problem is so everybody can share in the                 
 resource.  If there are mandates on all things that need to be                
 done, then it becomes split between the commercial and the other              
 users.  He said we got to sit down and figure out how the issues              
 are affecting the rivers and how everybody can get along in using             
 them.                                                                         
                                                                               
 Number 0711                                                                   
                                                                               
 REPRESENTATIVE OGAN invited Mr. McCune to come up to Mat-Su during            
 the summer.  He said maybe the Department of Fish and Game could              
 also come and meet with some of the people who have concerns and              
 there could be a meaningful discussion.  Representative Ogan said             
 at some point we need to look at guides as a commercial use of the            
 fish.  He noted he was on the Big Game Commercial Services Board.             
 He said he doesn't like fishing in the valley anymore because there           
 are too many people.  He indicated he used to fish in Dillingham              
 before it got crowded there.  Representative Ogan said the highest            
 and best use to him is personal use and subsistence.  Those who               
 live in urban Alaska don't qualify for subsistence, but he                    
 considers himself an urban subsistence hunter and fisherman.  He              
 said that should be the number one best use.  He said maybe the               
 committee can look at some areas in HB 149 or in another bill where           
 that use can be prioritized and address the commercial exploitation           
 - the guides, the people that are coming up from the Lower 48 and             
 putting the pressure on the whole.  He said that is a separate                
 issue and it should be on table.  Alaskans should feed their                  
 families first.  He said he thinks commercial fishermen and sports            
 fishermen can agree that Alaskans should feed their families first            
 and there is enough resources to do that.  He said the tourist can            
 stand in line behind Alaskans.                                                
                                                                               
 Number 0883                                                                   
                                                                               
 REPRESENTATIVE HODGINS said he and Mr. McCune have a conflict of              
 interest in that he has a fiduciary interest in a guiding service             
 in Port Moller, Alaska.  He said he does receive income off of both           
 guided fisheries tourism and commercial fisheries.   and the more             
 tourism related activity from the Kenai Peninsula, I do receive               
 more earnings."                                                               
                                                                               
 Number 0940                                                                   
                                                                               
 EMMET HEIDEMANN was next to testify via teleconference from                   
 Anchorage.  He informed the committee members he is not a salmon              
 permit holder, but he is a sports fisherman and also does some                
 guiding for only Alaskan sports fishermen.  He noted he doesn't               
 like to take tourists out.  Mr. Heidemann said he has been                    
 listening to some of the comments about the F.I.S.H. Initiative and           
 how they got  28,000 people to sign so fast.  He said they don't              
 mention that they paid signature gathers about $1 a head to gather            
 signatures in the Mat-Su, Anchorage, Kenai and Soldotna areas.                
 When the people were gathering the signatures, they weren't 100               
 percent true in that there was some very misleading information               
 given out.  He said the 28,000 signatures were gathered, but they             
 were paid for by a professional gatherer.  Mr. Heidemann referred             
 to the F.I.S.H. Initiative or HB 149 and said the healthy abundant            
 salmon runs of Alaska enjoyed today are a result of successful                
 management plans developed by the Alaska Board of Fisheries and               
 implemented by the Alaska Department of Fish and Game.  The                   
 biologists are the ones that are calling the shots and he believes            
 that when the science is taken out of fish management, we'll be               
 making a big mistake.  He said when it comes to maintaining the               
 salmon production levels (indisc.) meet Alaska's goal as                      
 conservation of fair sharing.  Too many fish in the spawning                  
 grounds can be just as disruptive as a balance of too few.  Mr.               
 Heidemann said management decisions that could lead to additional             
 (indisc.) efforts could be carefully addressed with an eye towards            
 habitat protection.  The preservation of our fragile fishery                  
 resources and important responsibility can't be driven by the                 
 politics and misinformation.                                                  
                                                                               
 MR. HEIDEMANN said we've heard the term that commercial fish and              
 sports fish are about a wash.  He said that term is sort of                   
 misleading.  The value of a fish caught commercially is still                 
 higher than a fish that is caught sports fishing.  He indicated               
 there has been talk about habitat and the poor runs in the Mat-Su             
 area.  Nobody has talked about the large motors and the big jet               
 boats that are running up and down the rivers and the over building           
 of houses close to streams.  He said he knows of one individual who           
 brags about catching anywhere from 25 to 50 fish, per hour, from              
 the deck on his house.  There is very little enforcement up there.            
 Mr. Heidemann explained the commercial industry have nets in the              
 rivers in the Mat-Su district and nobody has talked about them.               
                                                                               
 MR. HEIDEMANN explained the streams are very small.  The guides are           
 increasing at such a rate and they are taking an awful lot of fish.           
 He said we need to look at it all, work together and work for                 
 Alaska.  It shouldn't be commercial versus sports.                            
                                                                               
 MR. HEIDEMANN referred to HB 149 and said he sees a lot of                    
 similarities between it and the F.I.S.H. Initiative.  He stated he            
 takes offense that people are trying to put the F.I.S.H. Initiative           
 into HB 149, without trying to change the words of intent.  The               
 thinking is wrong and is a disservice to Alaska.  He stated he is             
 very opposed to HB 149.                                                       
                                                                               
 Number 1172                                                                   
                                                                               
 MARGO SHERWOOD, Domestic Engineer, testified via teleconference               
 from Anchorage.  Ms. Sherwood stated, "I am here to testify in                
 support of HB 149.  As wife, mother and grandmother, who feeds my             
 offspring fish in their diets, I feel that the allocation of salmon           
 are not fair.  I have watched the number of fish caught in our                
 Susitna drainages diminish over the last few years.  I have                   
 listened to my husband and other give advise to the Fish Board and            
 ADF&G in regards to slow decline of fish returns, but in most cases           
 they, the board, and ADF&G ignored their pleas.  Now that the fish            
 are not coming back in numbers that will maintain a sustained yield           
 we, the sports fisher people, do not come out until it's silver               
 time.  And in not doing so, have impacted the economy of the whole            
 Mat-Su Borough. It isn't good to watch friends lose their                     
 businesses for the sake of the mistakes made by the Fish Board and            
 ADF&G.  All we ask is something to protect the economy of the                 
 valley and put an equal amount of fish on my table.  I think this             
 bill will do it."  Ms. Sherwood said she has a commercial fisherman           
 friend and he says they are not getting the fish.  She said the               
 sports fishermen aren't at the Susitna drainage.  She questioned              
 whether the 400 setnetters could be the impact.                               
                                                                               
 CHAIRMAN AUSTERMAN said there are a number of people asking that              
 same question and he doesn't have an answer at this point in time.            
 Hopefully, in the fall they will come up with some of those answers           
 during the statewide hearings.                                                
                                                                               
 Number 1275                                                                   
                                                                               
 DON SHERWOOD, President, Alaska Boating Association, testified via            
 teleconference from Anchorage.  He noted his organization has                 
 chapters in Anchorage, the Mat-Su Valley and Fairbanks.  He said,             
 "I have come here to testify on behalf of my constituents which are           
 90 percent fishermen and hunters.  We support this piece of                   
 legislation because a lot of us have fished these areas for over 31           
 years.  I have witnessed the diminishing returns of salmon on our             
 rivers and streams within the Susitna drainage and the Upper Cook             
 Inlet Region.  For over ten years, I have spoke with the Board of             
 Fish and ADF&G bio people and warned them of the increased harvest            
 of salmon by commercial and setnetters below the mouth of the big             
 Su and has fallen on deaf ears until the Chinooks crashed on Deshka           
 and other streams, and guess who got cut back.  Yes, the sport                
 fishermen.  The Fish Board has always kowtowed to the money maker             
 and has allowed the record harvesting to continue.  We are only               
 asking for a fair and equitable share of our renewable resource.              
 The Mat Valley, which depends on the economic income from sport and           
 consumptive users, are now feeling these restrictions in over-the-            
 counter sales by the people who recreate in this area.  We realize            
 that the crash and dash by ADF&G to try and rectify the problem has           
 started, but is it too late in some of these areas.  All we want is           
 a fair share to put on our families tables and this bill is a start           
 in that direction."                                                           
                                                                               
 CHAIRMAN AUSTERMAN said because of the lateness of the hour, he               
 would bring the meeting to an end.  He indicated HB 149 would be              
 brought up again.                                                             
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 Number 1365                                                                   
                                                                               
 CHAIRMAN AUSTERMAN adjourned the House Special Committee on                   
 Fisheries meeting at 6:58 p.m.                                                
                                                                               

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