Legislature(2003 - 2004)

04/21/2004 08:36 AM House FSH

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                         April 21, 2004                                                                                         
                           8:36 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Paul Seaton, Chair                                                                                               
Representative Peggy Wilson, Vice Chair                                                                                         
Representative Cheryll Heinze                                                                                                   
Representative Dan Ogg                                                                                                          
Representative Ralph Samuels                                                                                                    
Representative Les Gara                                                                                                         
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative David Guttenberg                                                                                                 
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR SENATE BILL NO. 347(RES)                                                                                                 
"An Act  relating to  moratoria on entry  of new  participants or                                                               
vessels  into a  commercial fishery;  relating to  vessel permits                                                               
for,  and the  establishment  of  a moratorium  on  entry of  new                                                               
vessels  into, state  Gulf of  Alaska  groundfish fisheries;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 347                                                                                                                  
SHORT TITLE: COMM. FISHING MORATORIA, INCL. AK GULF                                                                             
SPONSOR(S): SENATOR(S) STEVENS B BY REQUEST                                                                                     
                                                                                                                                
02/16/04       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/16/04       (S)       RES                                                                                                    
03/03/04       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/03/04       (S)       Heard & Held                                                                                           
03/03/04       (S)       MINUTE(RES)                                                                                            
03/05/04       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/05/04       (S)       Moved CSSB 347(RES) Out of Committee                                                                   
03/05/04       (S)       MINUTE(RES)                                                                                            
03/08/04       (S)       RES RPT CS  3DP 2NR           NEW TITLE                                                                
03/08/04       (S)       NR: OGAN, LINCOLN; DP: WAGONER,                                                                        
03/08/04       (S)       STEVENS B, ELTON                                                                                       
03/08/04       (S)       FIN REFERRAL ADDED                                                                                     
03/09/04       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/09/04       (S)       Moved CSSB 347(RES) Out of Committee                                                                   
03/09/04       (S)       MINUTE(FIN)                                                                                            
03/10/04       (S)       FIN RPT CS(RES)  3DP 4NR                                                                               
03/10/04       (S)       DP: WILKEN, BUNDE, STEVENS B;                                                                          
03/10/04       (S)       NR: GREEN, HOFFMAN, OLSON, DYSON                                                                       
03/22/04       (S)       TRANSMITTED TO (H)                                                                                     
03/22/04       (S)       VERSION: CSSB 347(RES)                                                                                 
03/24/04       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/24/04       (H)       FSH, RES, FIN                                                                                          
03/29/04       (H)       FSH AT 9:00 AM CAPITOL 124                                                                             
03/29/04       (H)       Heard & Held                                                                                           
03/29/04       (H)       MINUTE(FSH)                                                                                            
04/05/04       (H)       FSH AT 9:00 AM CAPITOL 124                                                                             
04/05/04       (H)       Heard & Held                                                                                           
04/05/04       (H)       MINUTE(FSH)                                                                                            
04/14/04       (H)       FSH AT 8:30 AM CAPITOL 124                                                                             
04/14/04       (H)       Heard & Held <PUBLIC TESTIMONY>                                                                        
04/14/04       (H)       MINUTE(FSH)                                                                                            
04/19/04       (H)       FSH AT 9:00 AM CAPITOL 124                                                                             
04/19/04       (H)       Heard & Held                                                                                           
04/19/04       (H)       MINUTE(FSH)                                                                                            
04/20/04       (H)       FSH AT 0:00 AM CAPITOL 124                                                                             
04/20/04       (H)       <Bill Held Over From 4/19/04>                                                                          
04/21/04       (H)       FSH AT 8:30 AM CAPITOL 124                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 04-24, SIDE A                                                                                                            
Number 0001                                                                                                                     
                                                                                                                                
CHAIR  PAUL   SEATON  called  the  House   Special  Committee  on                                                             
Fisheries  meeting  back  to  order  at 8:36  a.m.    This  is  a                                                               
continuation of the April 19,  2004, meeting that was recessed to                                                               
the call of  the chair.  Representatives  Seaton, Wilson, Heinze,                                                               
Ogg, Samuels, and Gara were present at the call to order.                                                                       
                                                                                                                                
SB 347-COMM. FISHING MORATORIA, INCL. AK GULF                                                                                 
                                                                                                                                
CHAIR SEATON announced  that the only order of  business would be                                                               
CS FOR  SENATE BILL NO.  347(RES), "An Act relating  to moratoria                                                               
on  entry  of  new  participants or  vessels  into  a  commercial                                                               
fishery; relating  to vessel permits  for, and  the establishment                                                               
of  a moratorium  on entry  of new  vessels into,  state Gulf  of                                                               
Alaska  groundfish  fisheries;  and providing  for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
CHAIR SEATON  informed the committee that  [the committee packet]                                                               
includes two  versions of this legislation  and amendments, which                                                               
the  committee will  review.   The intent  is to  incorporate the                                                               
amendments such that the committee  will have legislation that it                                                               
can  review [at  the next  hearing].   He announced  that neither                                                               
version of SB 347 would be reported from committee today.                                                                       
                                                                                                                                
Number 0106                                                                                                                     
                                                                                                                                
CHAIR SEATON  withdrew his objection  to Version  X [23-LS1677\X,                                                               
Utermohle,  4/16/04],  which  was   left  pending  at  the  prior                                                               
hearing.  Therefore, Version X was before the committee.                                                                        
                                                                                                                                
CHAIR SEATON explained that Version  X includes both the interim-                                                               
use  permit  system  and  the   new  vessel  permit  system  with                                                               
moratorium  vessel rights.   Version  U [23-LS1677\U,  Utermohle,                                                               
4/2/04]  utilizes the  current interim-use  limited entry  system                                                               
while  it streamlines  the current  authority  of the  Commercial                                                               
Fisheries  Entry  Commission  (CFEC)  to  have  a  moratorium  on                                                               
interim-use permits, and places it in statute.                                                                                  
                                                                                                                                
Number 0342                                                                                                                     
                                                                                                                                
REPRESENTATIVE OGG presented the  following amendments to Version                                                               
X.  Conceptual Amendment 1A read as follows:                                                                                    
                                                                                                                                
     Page 11, Delete lines 2-4.                                                                                                 
                                                                                                                                
Conceptual  Amendment  1B read  as  follows  [with a  handwritten                                                               
correction]:                                                                                                                    
                                                                                                                                
     Page 8, line 6      delete 1998, insert 2000                                                                               
     Page 8, lie 23      delete 1998, insert 2000                                                                               
                                                                                                                                
Conceptual Amendment 1C read as follows:                                                                                        
                                                                                                                                
     Page 3 line 5                                                                                                              
     Add new paragraph (d)                                                                                                      
          (d) It is the intent of the legislature that the                                                                      
     following  principles shall  be  utilized  by CFEC  and                                                                    
     ADF&G  in  the development  of  a  long rang  plan  and                                                                    
     determining  any  limited  entry  fishery  subsequently                                                                    
     created in any Gulf of Alaska ground fishery:                                                                              
                                                                                                                                
               (1) The greatest number of vessels and                                                                           
               participants economically viable shall be                                                                        
               included;                                                                                                        
          (2) Protection of stable and growing healthy                                                                          
               coastal community economies;                                                                                     
          (3) Ensuring the health of coastal community                                                                          
               fish processing;                                                                                                 
          (4) Protection of stable and growing cannery                                                                          
               workers employment;                                                                                              
               (5) Limited entry permits are issued to                                                                          
               individuals and not business organizations;                                                                      
               (6) The State is not limiting entry just                                                                         
               because of federal limitations;                                                                                  
               (7) Permitted participation by participants                                                                      
               and vessels in ground fisheries during the                                                                       
               moratorium shall not be considered for                                                                           
               eligibility in any subsequent Limited Entry                                                                      
               GOA ground fishery; and                                                                                          
               (8) That state policies and not federal                                                                          
               policies govern any resulting limited entry                                                                      
               program for state GOA ground fisheries.                                                                          
                                                                                                                                
REPRESENTATIVE  OGG  explained  that  Amendment  1A  deletes  the                                                               
section that leaves the door  open on the issue of participation.                                                               
Therefore, moratorium years won't be counted.                                                                                   
                                                                                                                                
CHAIR  SEATON clarified  that the  amendments  will be  presented                                                               
today to allow  the committee to discuss them;  and therefore the                                                               
committee won't vote on the amendments at this time.                                                                            
                                                                                                                                
Number 0792                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HEINZE expressed  concern  that this  legislation                                                               
has two more committees of referral.   She asked if the committee                                                               
is ever going to move it out of this committee.                                                                                 
                                                                                                                                
CHAIR SEATON said that there will be a meeting on Monday.                                                                       
                                                                                                                                
REPRESENTATIVE  OGG  turned  to  Amendment 1B  and  reminded  the                                                               
committee that the sponsor said  he didn't object to changing the                                                               
qualifying  years  form 1998  to  2000,  which would  delete  200                                                               
vessels and 300 interim-use permit (IUP) holders.                                                                               
                                                                                                                                
Number 0969                                                                                                                     
                                                                                                                                
REPRESENTATIVE  WILSON  commented,  "We  don't  want  any  longer                                                               
period of time  than we have to."  Therefore,  she inquired as to                                                               
the possibility of tightening the window further.                                                                               
                                                                                                                                
REPRESENTATIVE OGG  said that  he believes  there is  a four-year                                                               
minimum.                                                                                                                        
                                                                                                                                
CHAIR SEATON  opined that  statutorily any window  can be  put in                                                               
place.                                                                                                                          
                                                                                                                                
REPRESENTATIVE OGG  interjected that [Amendment 1B]  reflects the                                                               
recommendation of the sponsor.                                                                                                  
                                                                                                                                
REPRESENTATIVE WILSON  suggested changing the year  to 2001, then                                                               
[the legislature] would have more options.                                                                                      
                                                                                                                                
Number 1045                                                                                                                     
                                                                                                                                
CHAIR SEATON explained  that there was a  recommendation from the                                                               
Board of Fisheries  workgroup "based on some years  and getting a                                                               
handle  around the  fishery."   He said  that the  committee will                                                               
want to  obtain some public  testimony with regard to  the change                                                               
of  date because  it changes  the basic  concept of  the original                                                               
legislation.                                                                                                                    
                                                                                                                                
REPRESENTATIVE OGG  reiterated that  he brought forth  the change                                                               
encompassed in Amendment 1B because  the sponsor was amendable to                                                               
it.                                                                                                                             
                                                                                                                                
REPRESENTATIVE  OGG  turned  to  Amendment 1C,  which  is  intent                                                               
language.  Although some may  point out that these principles are                                                               
already in  the statute  or constitution,  these are  things that                                                               
need to happen when moving forward  in state water fisheries.  He                                                               
acknowledged that  there is some  concern that  federal fisheries                                                               
drive state fisheries rather than the reverse.                                                                                  
                                                                                                                                
CHAIR  SEATON  [reinstated] his  objection  [to  the adoption  of                                                               
Version X].                                                                                                                     
                                                                                                                                
Number 1271                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GARA  pointed  out  that  a  number  of  policies                                                               
already direct and  guide CFEC, and added that he  didn't want to                                                               
interfere with those policies or  mandates.  Furthermore, he said                                                               
that  he  wouldn't want  the  court  to  look at  these  specific                                                               
principles  and  interpret  them  to have  been  viewed  as  more                                                               
important  than  existing  principles   or  even  trumping  them.                                                               
Therefore, he suggested  that the maker of the  amendment may not                                                               
want  to  include  the  language "in  addition  to  any  existing                                                               
statutory policies and mandates these shall also be considered."                                                                
                                                                                                                                
Number 1393                                                                                                                     
                                                                                                                                
REPRESENTATIVE WILSON  removed her objection to  Version U, which                                                               
was left pending at the prior  hearing.  Therefore, Version U was                                                               
before the committee.                                                                                                           
                                                                                                                                
CHAIR SEATON  turned attention to  Conceptual Amendment  1, which                                                               
read:                                                                                                                           
                                                                                                                                
     Page 3, line 21;                                                                                                           
          Delete "four years" and insert "one year".                                                                            
                                                                                                                                
     Page 3, line 22;                                                                                                           
          Delete "two years" and insert "one year".                                                                             
                                                                                                                                
     Page 7, line 3;                                                                                                            
          Delete "2008" and insert "2005".                                                                                      
                                                                                                                                
     Page 7, line 15;                                                                                                           
          Delete subsection (f).                                                                                                
                                                                                                                                
CHAIR  SEATON, in  response to  Representative Wilson,  explained                                                               
the reasoning behind  the change on page 3, line  21 in Amendment                                                               
1.   When there is  a long moratorium,  say for six  years, there                                                               
may be  a requirement to  count the participation  and deliveries                                                               
during  that  four-  to  six-year  period.    The  aforementioned                                                               
creates  a race  for  the  fish among  those  who are  moratorium                                                               
qualified.  Chair  Seaton emphasized that the purpose  of this is                                                               
to provide a window in which  the Board of Fisheries can create a                                                               
system  to work  in conjunction  with the  North Pacific  Fishery                                                               
Management  Council  (NPFMC).    It has  been  related  that  the                                                               
federal system will  be implemented by 2006 or  2007.  Therefore,                                                               
there is  no reason  to have  a long  timeframe during  which the                                                               
fish deliveries would count and create  a race for fish among the                                                               
moratorium participants.                                                                                                        
                                                                                                                                
Number 1604                                                                                                                     
                                                                                                                                
REPRESENTATIVE   WILSON  related   her  understanding   that  the                                                               
department  needed  some  time  to   review,  which  is  why  the                                                               
moratorium was implemented.                                                                                                     
                                                                                                                                
CHAIR  SEATON said  that's  partially true.    However, the  main                                                               
thrust  behind this  is for  the state  to develop  a coordinated                                                               
structure  with   the  federal   government.    If   the  federal                                                               
government has its  system in place in 2006 or  2007, then a six-                                                               
year  moratorium on  participants  in state  waters doesn't  make                                                               
sense.   Again, such a  long window would  create a race  for the                                                               
fish because  of the  knowledge that  legally the  fish delivered                                                               
during the moratorium would count.                                                                                              
                                                                                                                                
REPRESENTATIVE WILSON  stated that a  race for the  fish wouldn't                                                               
happen  if it's  clearly stated  that fish  delivered during  the                                                               
moratorium won't count.                                                                                                         
                                                                                                                                
CHAIR SEATON replied:                                                                                                           
                                                                                                                                
     It may or  may not ....   If it goes for  six years and                                                                    
     we're having to  give the fishery rights  to people, as                                                                    
     CFEC testified, that participated  10 years ago and our                                                                    
     requirement  that we  have people  that are  reliant on                                                                    
     the fishery  ..., it's hard  to justify  giving fishery                                                                    
     rights to  people 10  years ago  instead of  the people                                                                    
     that are current participants.   And so, ... we'll come                                                                    
     back to  the legislature  and we will  pass a  law that                                                                    
     says, "Oh,  well this is  totally unfair it's  been six                                                                    
     years so  the people that  are actually fishing  in the                                                                    
     last six years, ... those  will count."  And that's the                                                                    
     quandary.                                                                                                                  
                                                                                                                                
CHAIR SEATON turned to the change  in Amendment 1 to page 3, line                                                               
22, which would create a one-year  extension.  The change on page                                                               
7,  line  15,  deletes  subsection   (f),  which  is  similar  to                                                               
Representative Ogg's [Amendment 1A].                                                                                            
                                                                                                                                
REPRESENTATIVE WILSON  reinstated her  objection to  the adoption                                                               
of Version U.                                                                                                                   
                                                                                                                                
[SB 347 was held over.]                                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special  Committee on  Fisheries  meeting was  adjourned at  9:02                                                               
a.m.                                                                                                                            

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