Legislature(2007 - 2008)BARNES 124

05/09/2007 08:30 AM House FISHERIES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 188 BOARD OF FISHERIES' AUTHORITY TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 134 PROTECTION OF SALMON SPAWNING WATER TELECONFERENCED
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                          May 9, 2007                                                                                           
                           8:40 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Paul Seaton, Chair                                                                                               
Representative Kyle Johansen                                                                                                    
Representative Craig Johnson                                                                                                    
Representative Gabrielle LeDoux                                                                                                 
Representative Peggy Wilson                                                                                                     
Representative Bryce Edgmon                                                                                                     
Representative Lindsey Holmes                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 134                                                                                                              
"An Act relating to conservation and protection of wild salmon                                                                  
production in drainages affecting the Bristol Bay Fisheries                                                                     
Reserve; and providing for an effective date."                                                                                  
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 188                                                                                       
"An Act relating to the authority of the Board of Fisheries to                                                                  
allocate within fisheries; and providing for an effective date."                                                                
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 134                                                                                                                  
SHORT TITLE: PROTECTION OF SALMON SPAWNING WATER                                                                                
SPONSOR(s): REPRESENTATIVE(s) EDGMON                                                                                            
                                                                                                                                
02/14/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/14/07       (H)       FSH, RES                                                                                               
02/28/07       (H)       FSH AT 8:30 AM BARNES 124                                                                              
02/28/07       (H)       Heard & Held                                                                                           
02/28/07       (H)       MINUTE(FSH)                                                                                            
03/02/07       (H)       FSH AT 8:30 AM BARNES 124                                                                              
03/02/07       (H)       Heard & Held                                                                                           
03/02/07       (H)       MINUTE(FSH)                                                                                            
03/05/07       (H)       FSH AT 8:30 AM BARNES 124                                                                              
03/05/07       (H)       Heard & Held                                                                                           
03/05/07       (H)       MINUTE(FSH)                                                                                            
05/09/07       (H)       FSH AT 8:30 AM BARNES 124                                                                              
                                                                                                                                
BILL: HB 188                                                                                                                  
SHORT TITLE: BOARD OF FISHERIES' AUTHORITY                                                                                      
SPONSOR(s): REPRESENTATIVE(s) WILSON                                                                                            
                                                                                                                                
03/12/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/12/07       (H)       FSH, RES, JUD                                                                                          
04/27/07       (H)       SPONSOR SUBSTITUTE INTRODUCED                                                                          
04/27/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/27/07       (H)       FSH, RES, JUD                                                                                          
05/02/07       (H)       FSH AT 8:30 AM BARNES 124                                                                              
05/02/07       (H)       Heard & Held                                                                                           
05/02/07       (H)       MINUTE(FSH)                                                                                            
05/04/07       (H)       FSH AT 8:30 AM BARNES 124                                                                              
05/04/07       (H)       Heard & Held                                                                                           
05/04/07       (H)       MINUTE(FSH)                                                                                            
05/09/07       (H)       FSH AT 8:30 AM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
STEVEN DAUGHERTY, Assistant Attorney General                                                                                    
Natural Resources Section                                                                                                       
Civil Division (Anchorage)                                                                                                      
Department of Law (DOL)                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 188.                                                                            
                                                                                                                                
BRUCE TWOMLEY, Commissioner                                                                                                     
Commercial Fisheries Entry Commission (CFEC)                                                                                    
Alaska Department of Fish & Game (ADF&G)                                                                                        
Juneau, Alaska'                                                                                                                 
POSITION STATEMENT:  Testified in support of HB 188.                                                                            
                                                                                                                                
JOHN JONES                                                                                                                      
Chignik, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in opposition to HB 188.                                                                         
                                                                                                                                
CLEM [CLEMENS] GRUNERT, President                                                                                               
Chignik Lagoon Village Council                                                                                                  
Representative, Chignik Lagoon Power Utility                                                                                    
Member, Chignik Lagoon Native Corporation Board                                                                                 
Chignik Lagoon, Alaska                                                                                                          
POSITION STATEMENT:  Testified in opposition to HB 188.                                                                         
                                                                                                                                
NORMAN ANDERSON                                                                                                                 
Dillingham, Alaska                                                                                                              
POSITION STATEMENT:  Testified in opposition to HB 188.                                                                         
                                                                                                                                
STEVE TAUFEN, Public Advocate                                                                                                   
Founder, Groundswell Fisheries Movement                                                                                         
Seattle, Washington                                                                                                             
POSITION STATEMENT:  Testified in opposition to HB 188.                                                                         
                                                                                                                                
CALVIN SKONBERG                                                                                                                 
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 188.                                                                            
                                                                                                                                
ALEXUS KWACHKA                                                                                                                  
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HB 188.                                                                         
                                                                                                                                
JOHN RANTZ, Secretary                                                                                                           
Chignik Fishermen United                                                                                                        
Chignik, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in opposition to HB 188.                                                                         
                                                                                                                                
MOREY JONES, President                                                                                                          
Chignik Fishermen United                                                                                                        
Chignik, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in opposition to HB 188.                                                                         
                                                                                                                                
SCOTT MCALLISTER, Member                                                                                                        
Sitka Sac Roe Group                                                                                                             
Southeast Seiners                                                                                                               
Marketing Chair, United Fishermen of Alaska (UFA)                                                                               
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 188.                                                                            
                                                                                                                                
FRANK GRUNERT                                                                                                                   
Chignik Lagoon, Alaska                                                                                                          
POSITION STATEMENT:  Testified in opposition to HB 188, and                                                                     
offered modifications.                                                                                                          
                                                                                                                                
BOB THORSTENSON, President                                                                                                      
United Fishermen of Alaska (UFA)                                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 188.                                                                            
                                                                                                                                
BRUCE WALLACE                                                                                                                   
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 188.                                                                            
                                                                                                                                
SHAWN DOCHTERMANN, Vice President                                                                                               
Alaska Jig Association                                                                                                          
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HB 188.                                                                         
                                                                                                                                
JULIE KAVANAUGH                                                                                                                 
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified on HB 188.                                                                                       
                                                                                                                                
JIM ROCKOM,                                                                                                                     
(No address provided)                                                                                                           
POSITION STATEMENT:  Testified in opposition to HB 188.                                                                         
                                                                                                                                
CHARLES "CHIP" TREINEN                                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 188.                                                                            
                                                                                                                                
JIM PETERSEN                                                                                                                    
(No address provided)                                                                                                           
POSITION STATEMENT:  Testified in opposition to HB 188.                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                              
CHAIR  PAUL   SEATON  called  the   House  Special   Committee  on                                                            
Fisheries  meeting  to  order  at  8:40:17  AM.    Representatives                                                            
Wilson, Johnson,  LeDoux, and Edgmon  were present at the  call to                                                              
order.    Representatives  Johansen  and  Holmes  arrived  as  the                                                              
meeting was in progress.                                                                                                        
                                                                                                                                
HB 134-PROTECTION OF SALMON SPAWNING WATER                                                                                    
                                                                                                                                
8:40:34 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced  that the first order of  business would be                                                              
HOUSE  BILL  NO.  134,  "An  Act   relating  to  conservation  and                                                              
protection of  wild salmon production  in drainages  affecting the                                                              
Bristol  Bay Fisheries  Reserve;  and providing  for an  effective                                                              
date."                                                                                                                          
                                                                                                                                
CHAIR SEATON explained  that permission has been  received to hear                                                              
HB  134,  during  the  interim   in  conjunction  with  the  House                                                              
Resources  Committee.     This  will  allow  both   committees  to                                                              
collaborate  during  the  planned  field hearings,  and  have  the                                                              
benefit of receiving the information together.                                                                                  
                                                                                                                                
8:42:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON said it  would be helpful  to have  as many                                                              
members of  both committees as  possible attend the  area meetings                                                              
to gain a full perspective of the situation.                                                                                    
                                                                                                                                
8:42:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX   expressed  her  support   for  the  field                                                              
meetings, asked  where the  hearings would be  held, and  how much                                                              
of the area the committee members could expect to visit.                                                                        
                                                                                                                                
CHAIR SEATON  stated that,  thus far, the  expectation is  to hold                                                              
hearings in  more than  one community, spend  several days  in the                                                              
area, and  tour the  effected areas of  the region.   Arrangements                                                              
are still being made, he said.                                                                                                  
                                                                                                                                
REPRESENTATIVE LEDOUX  suggested including a visit  to the village                                                              
of Nondalton.                                                                                                                   
                                                                                                                                
CHAIR SEATON  asked that committee  members submit  written agenda                                                              
suggestions to his office.                                                                                                      
                                                                                                                                
[HB 134 was held over.]                                                                                                         
                                                                                                                                
HB 188-BOARD OF FISHERIES' AUTHORITY                                                                                          
                                                                                                                                
8:43:59 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  announced that the  next order of business  would be                                                              
SPONSOR SUBSTITUTE  FOR HOUSE  BILL NO. 188,  "An Act  relating to                                                              
the  authority  of  the Board  of  Fisheries  to  allocate  within                                                              
fisheries; and providing for an effective date."                                                                                
                                                                                                                                
8:44:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PEGGY  WILSON, Alaska State  Legislature, presented                                                              
HB 188, as  prime sponsor, and  stated that this bill  was drafted                                                              
by  request  of  the  Department  of  Law  (DOL)  and  the  Alaska                                                              
Department  of Fish  & Game  (ADF&G); both  departments find  need                                                              
for  this legislation.    Since  the  bill was  first  introduced,                                                              
concerns  have  been  addressed  and  included  in  the  [sponsor]                                                              
substitute (SS).  Further, she emphatically disclaimed:                                                                         
                                                                                                                                
     I have  no intention of doing  anything with a  co-op, I                                                                   
     have no intention  about dealing with any  kind of IFQ's                                                                   
     [individual fishery  quotas], ... and I want  that to be                                                                   
     made very clear.                                                                                                           
                                                                                                                                
8:46:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX noted  that  the bill  appears  to have  "a                                                              
relatively loose  title."  If  it is not  the intent to  allow for                                                              
IFQ's, or for  co-ops, would the sponsor consider  an amendment to                                                              
the title, she asked.                                                                                                           
                                                                                                                                
REPRESENTATIVE WILSON  responded that, as sponsor,  she would have                                                              
no problem with a  title change.  The DOL may need  to weigh in on                                                              
the question, however.                                                                                                          
                                                                                                                                
8:47:48 AM                                                                                                                    
                                                                                                                                
STEVEN DAUGHERTY,  Assistant Attorney  General, Natural  Resources                                                              
Section,  Civil Division  (Anchorage),  Department  of Law  (DOL),                                                              
provided  official departmental  support  for HB  188,  as a  bill                                                              
necessary to preserve  and allocate fishery resources.   This bill                                                              
became  necessary due  to  Supreme Court  opinions  in Grunert  v.                                                              
State.    The  decisions  opinion  redefined  what  constitutes  a                                                              
fishery  administrative  area.     He  provided  examples  of  sub                                                              
district  management areas  that  regularly occur  in Bristol  Bay                                                              
and on  the Yukon  River, to  illustrate how  this ruling  effects                                                              
every area of  the state.  Additionally, allocations  for kelp, as                                                              
well as  sport fishing interests,  could be effected.   He pointed                                                              
out  that  it has  always  been  assumed  that  the board  is  not                                                              
restricted  in  it's  authority   to  allocate  within  fisheries.                                                              
There  is  a  significant  risk  of litigation,  if  this  is  not                                                              
addressed.     This  bill  is   important  to  preserve   existing                                                              
regulation,  and  to continue  to  allow  the board's  ability  to                                                              
allocate  resources.   The board  has been  cautioned to  minimize                                                              
allocative measures, while this is being addressed.                                                                             
                                                                                                                                
8:54:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  asked how many  cases are pending,  and how                                                              
many   letters  have   been  received   by   DOL  regarding   suit                                                              
considerations.                                                                                                                 
                                                                                                                                
MR.  DAUGHERTY replied  none.   He  offered that  there have  been                                                              
"mutterings,"  and speculated  that  it is  probably  a matter  of                                                              
time before another suit arises.                                                                                                
                                                                                                                                
REPRESENTATIVE LEDOUX  noted that this decision occurred  in March                                                              
17,  2005.   It  appears  that  if  there  were a  flood  gate  of                                                              
mitigation suits,  there would have  been some indication  of that                                                              
by now.                                                                                                                         
                                                                                                                                
8:55:26 AM                                                                                                                    
                                                                                                                                
MR.  DAUGHERTY  clarified that  the  main  problem did  not  arise                                                              
until 2006.   He opined that  people may not challenge  this until                                                              
they  see a  benefit  to their  user  group.   In  most cases  the                                                              
regulations  that the  board  has adopted  are  beneficial to  all                                                              
user groups.  Someone  on the outside, who is not  benefiting from                                                              
a  user group,  will  be  the person  who  makes a  challenge,  he                                                              
opined.                                                                                                                         
                                                                                                                                
8:56:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX asked  if the  bill could  not address  the                                                              
specific regulations  of concern,  rather than  take such  an open                                                              
approach.                                                                                                                       
                                                                                                                                
MR.  DAUGHERTY responded  that  there  is no  way  to address  the                                                              
issue completely.   It may not be possible to identify  all of the                                                              
regulations.    There is  a  possibility  that this  could  affect                                                              
hundreds of regulations.   Additionally, it will  serve to protect                                                              
future regulations.                                                                                                             
                                                                                                                                
8:57:47 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  referred  to  legal  letters  in  the  packet,  and                                                              
directing   attention  to   the  March  26,   2007,  Brian   Kane,                                                              
Legislative Counsel,  memorandum.  He read Mr.  Kane's response to                                                              
questions  regarding  the ability  to  overturn a  direct  supreme                                                              
court  decision,  which states  on  page 2  [original  punctuation                                                              
provided]:                                                                                                                      
                                                                                                                                
     The  Hebert   and  the   Grunert  decisions,   together,                                                                   
     proceed   from  different   starting  points.     Hebert                                                                   
     unquestionably   involved    active   participation   by                                                                   
     individual  fishermen; in Grunert  II, the court  noted:                                                                   
     "The   cooperative  scheme   addressed   in  Grunert   I                                                                   
     differed from  the cooperative scheme we  consider here,                                                                   
     but our  conclusion is the  same:  The legislature  must                                                                   
     give the board  statutory authority to create  a fishery                                                                   
     scheme  in   which  permit   holders  profit  from   the                                                                   
     harvests of other permit holders."                                                                                         
                                                                                                                                
     Because  of  the  factual  circumstances  and  differing                                                                   
     principles  between  the  two  sets  of  decisions,  and                                                                   
     because  the  regulatory  system   sustained  in  Hebert                                                                   
     contemplated expanded  opportunity for active  fishermen                                                                   
     within the  entirety of  a fishery administrative  area,                                                                   
     I don't  see the  court's Hebert  decision as being  put                                                                   
     "at  risk"  either  by  the   Grunert  decisions  or  by                                                                   
     legislative  action,  or  inaction,   on  the  amendment                                                                   
     proposed by House Bill 188.                                                                                                
                                                                                                                                
CHAIR SEATON said  that this has been addressed in  statute in the                                                              
Korean hair  crab, and  scallop industries,  and the effects  have                                                              
been experienced.  He said:                                                                                                     
                                                                                                                                
     Would  you  please  address   why  you  think  that  the                                                                   
     general language  of Grunert II  is going to  overturn a                                                                   
     specific  supreme court  decision,  based  on the  facts                                                                   
     and  the  conditions  of the  administrative  area,  and                                                                   
     breaking  the administrative  area,  and allowing  those                                                                   
     choices to be made for super exclusive areas.                                                                              
                                                                                                                                
9:01:44 AM                                                                                                                    
                                                                                                                                
MR. DAUGHERTY noted  that the supreme court, in  the Grunert case,                                                              
went far beyond  what it would have  to do in order  to overturn a                                                              
cooperative   fishery,  and   he  discussed   the  language   that                                                              
established this  ability.  Further,  the court held that  the BOF                                                              
does not  have the authority to  allocate within fisheries,  or to                                                              
define  a  fishery.    These  two   actions  together  create  the                                                              
problem.   He maintained that the  board does have the  ability to                                                              
maintain super exclusive  areas under the authority  allowing them                                                              
to set quotas,  bag limits, harvest levels, and  other methods and                                                              
means  restrictions.   However, there  is a  strong argument  that                                                              
the reasoning  of the  court in  Grunert, would  apply and  that a                                                              
super  exclusive  area is  an  allocation  within a  fishery,  and                                                              
could be  challenged on that  ground.   This point was  not raised                                                              
in the Hebert case.                                                                                                             
                                                                                                                                
CHAIR SEATON queried  that, if the court had  intended to overturn                                                              
Hebert,  would they  have  taken  this action  without  specifying                                                              
that they were, in fact, overturning an existing case.                                                                          
                                                                                                                                
MR. DAUGHERTY  suggested that they  may not have  been overturning                                                              
an existing case,  at the time, but the point to  consider is that                                                              
the court's  reasoning  could be  used in the  future if  specific                                                              
facts were  raised to the  court that could  serve as a  basis for                                                              
overturning  Hebert.   The outcome  of such  litigation cannot  be                                                              
predicted.                                                                                                                      
                                                                                                                                
9:04:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  observed that, thus far, the  state has had                                                              
one case based on Grunert, and asked if it was settled.                                                                         
                                                                                                                                
MR. DAUGHERTY replied, "Yes."                                                                                                   
                                                                                                                                
REPRESENTATIVE LEDOUX suggested that it be used as a test case.                                                                 
                                                                                                                                
MR. DAUGHERTY  explained why the  single case was  easily settled,                                                              
but not worth  the risk of litigation.   The decision  was made to                                                              
solicit a solution through the legislature instead.                                                                             
                                                                                                                                
9:06:45 AM                                                                                                                    
                                                                                                                                
BRUCE   TWOMLEY,   Commissioner,    Commercial   Fisheries   Entry                                                              
Commission  (CFEC),  Alaska Department  of  Fish  & Game  (ADF&G),                                                              
stated  departmental  support  for   HB  188,  citing  this  as  a                                                              
critical issue.   He explained why the limited  entry system works                                                              
best on  a system  that is  managed for  escapement goals  vs. the                                                              
quota  system.   An  example of  this  is the  Southeast,  Chatham                                                              
Strait, sablefish  industry, and he  proceeded to detail  how this                                                              
fishery devolved  to the  point that the  managers were  afraid to                                                              
open the fishery.   The BOF finally allocated  within the fishery,                                                              
allotting  shares  of  the quota  to  individual  permit  holders.                                                              
This  equated to  a bag  limit, which  improved conservation,  and                                                              
provided  confidence  to the  participants  and managers  for  the                                                              
success of the fishery.   Because of this action,  this fishery is                                                              
viable today.  However,  in 2005 and 2006, when  the supreme court                                                              
held that the  board lacks statutory authority  to allocate within                                                              
a  fishery,  doubt  ensued  regarding  the  board's  authority  to                                                              
sustain this type of management effort.                                                                                         
                                                                                                                                
9:12:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX suggested  that  these  arguments could  be                                                              
used  to support  IFQ's, which  has  been done  by the  department                                                              
regarding the ground  fish harvest.  She recalled  past efforts to                                                              
have such a bill put before the legislature.                                                                                    
                                                                                                                                
COMMISSIONER TWOMLEY  said that had occurred, however  that is not                                                              
why  this bill  is being  requested; it  is precipitated  directly                                                              
from the Grunert decision.                                                                                                      
                                                                                                                                
9:13:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  queried how the passage of  this bill would                                                              
effect the  sable fish industry.   Further, she offered  that this                                                              
could  be  challenged  on  constitutional  as  well  as  statutory                                                              
grounds.    She  asked  if  the  legislature  is  really  avoiding                                                              
anything here, given  that the constitutional aspect  has not been                                                              
tested.                                                                                                                         
                                                                                                                                
COMMISSIONER  TWOMLEY replied,  "I think  not. ...  I don't  think                                                              
there could be a realistic challenge."                                                                                          
                                                                                                                                
REPRESENTATIVE  LEDOUX asked  what  is the  difference between  an                                                              
IFQ, and  how the  sablefish fishery  was managed.   She  recalled                                                              
that the  Chatham Strait  quotas were considered  unconstitutional                                                              
when they were implemented, but no one challenged the point.                                                                    
                                                                                                                                
COMMISSIONER  TWOMLEY agreed  that there  is a  possibility for  a                                                              
challenge,  however,  strong arguments  exist  for  taking such  a                                                              
measure.                                                                                                                        
                                                                                                                                
9:17:23 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  suggested that the CFEC  would not have an  issue if                                                              
only  one boat  actively  fished, never  landed  on shore,  served                                                              
conservation  efforts,  and  presented   a  well  managed  system;                                                              
similar   to  the   current  scallop   fishery.     However,   the                                                              
legislature views  this from a  different policy perspective.   He                                                              
directed attention  to the Legal Services memorandum,  dated March                                                              
26, pages 3 and 4, and read:                                                                                                    
                                                                                                                                
     Since,  independently  of   the  amendment  proposed  by                                                                   
     House Bill  188, the board  has adopted in  regulation a                                                                   
     quota  based, at least  in part,  on vessel size  class,                                                                   
     there  is   no  reason   to  believe  that   legislative                                                                   
     inaction  on the bill  would call  that regulation  into                                                                   
     question.                                                                                                                  
                                                                                                                                
CHAIR   SEATON  question   whether   this   isn't  a   fundamental                                                              
difference from Mr. Twomley's opinion.                                                                                          
                                                                                                                                
COMMISSIONER  TWOMLEY responded,  "No."  He  said it appears  that                                                              
Mr. Kane  is invoking the  same theory as  Mr. Daugherty.   Due to                                                              
the unpredictability  of a decision, why condemn people  to a four                                                              
year  litigation  process and  risk  their livelihood,  he  asked.                                                              
The  legislature   could  provide  the  clarification   with  this                                                              
legislation, and do no harm.                                                                                                    
                                                                                                                                
9:20:35 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  observed that the primary  concern for this                                                              
decision  is  coming from  the  CFEC  and the  attorney  general's                                                              
office.   She  offered that  it is  not standard  practice in  the                                                              
legislative  halls  to  be  in anticipation  of  a  supreme  court                                                              
decision.                                                                                                                       
                                                                                                                                
COMMISSIONER TWOMLEY  suggested that  perhaps the constituents  do                                                              
not know how this may directly effect them.                                                                                     
                                                                                                                                
9:22:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN asked that  the use  of the term  "we" be                                                              
used  conscientiously by  committee  members,  and suggested  that                                                              
they restrict  their comments  to personal  opinion.   Further, he                                                              
expressed support for HB 188.                                                                                                   
                                                                                                                                
9:23:26 AM                                                                                                                    
                                                                                                                                
JOHN  JONES  stated   opposition  to  HB  188,   citing  how  past                                                              
allocations  have not worked.   He  described the Chignik  "single                                                              
fishery,"  and his  concerns for  the board  managing within  such                                                              
fisheries.  He said  that the board does not need  to have further                                                              
allocation authority,  but should  focus on regulations,  with the                                                              
department managing the resource.                                                                                               
                                                                                                                                
9:27:28 AM                                                                                                                    
                                                                                                                                
CLEM  [CLEMENS]   GRUNERT,  President,   Chignik  Lagoon   Village                                                              
Council,  Representative  Chignik  Lagoon Power  Utility,  Member,                                                              
Chignik  Lagoon Native  Corporation Board,  stated opposition  for                                                              
HB 188.  He  paraphrased from a prepared statement,  which read as                                                              
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     Currently I  run a family fish  operation.  I  invest my                                                                   
     time in this  village and the fishery so that  it can be                                                                   
     a good place  to live and make a living  for the younger                                                                   
     generations.                                                                                                               
                                                                                                                                
     House  Bill  No.  188  worries   me  not  only  for  the                                                                   
     elimination  of  checks  and balances  for  the  fishing                                                                   
     industry  in Alaska, if  it were to  pass, but  also for                                                                   
     the  disrespect it shows  the judiciary  system for  the                                                                   
     State of Alaska.                                                                                                           
                                                                                                                                
     I  was  one of  the  very  few  that did  not  join  the                                                                   
     cooperative  fishery  at all  for  its duration  in  our                                                                   
     fishery.   Even though  my income  and fishing time  was                                                                   
     stripped from  me and my family,  I could not  put aside                                                                   
     my  stand  against the  co-op.    Besides that  I  don't                                                                   
     think  there were  any guarantees  that  you would  make                                                                   
     more in the  co-op because you had to be a  catcher boat                                                                   
     or a  tender to  do that and  not everyone got  selected                                                                   
     for those jobs.                                                                                                            
                                                                                                                                
     This  bill needs  more  than one  week's  consideration,                                                                   
     not  like the  co-ops three  days, to put  it in  place.                                                                   
     Residents  of villages  and  the earnings  as  fishermen                                                                   
     are at stake  and it goes without saying  that those are                                                                   
     important  and need  a lot  of time  and public  comment                                                                   
     first.   The high cost  of fuel has  raised the  cost of                                                                   
     living in  the village  so much that  it would  not take                                                                   
     much to turn most fishing villages into ghost towns.                                                                       
                                                                                                                                
     So  I  ask  that  all  of  these  necessary  things  are                                                                   
     considered and to move slowly on Bill No. 188.                                                                             
                                                                                                                                
9:29:41 AM                                                                                                                    
                                                                                                                                
NORMAN  ANDERSON  stated  opposition  to  HB  188,  and  expressed                                                              
concerns for the Naknek fishery.                                                                                                
                                                                                                                                
9:31:02 AM                                                                                                                    
                                                                                                                                
STEVE  TAUFEN,  Public Advocate,  Founder,  Groundswell  Fisheries                                                              
Movement, stated opposition  to HB 188.  He said,  "I take umbrage                                                              
with this  role of  the BOF,  and others,  in economic  allocation                                                              
...."    This  is  a power  shift  from  the  legislature  to  the                                                              
agencies, he  opined, and a classic  case of the  attorney general                                                              
office's  not adhering  to putting  the public  first.  He  agreed                                                              
with the legal  opinion of Brian Kane, Legal  Counsel, and praised                                                              
his work.  Because  there is so much more surrounding  this issue,                                                              
it is premature to advance this bill, he stressed.                                                                              
                                                                                                                                
9:34:20 AM                                                                                                                    
                                                                                                                                
CALVIN SKONBERG  stated support for HB  188.  He provided  a brief                                                              
history  of  his 54  year  fishing  experience, working  with  the                                                              
board, and as a member of an IFQ.                                                                                               
                                                                                                                                
9:35:40 AM                                                                                                                    
                                                                                                                                
ALEXUS KWACHKA stated  adamant opposition to HB  188, arguing that                                                              
IFQ's  have   been  detrimental.     The  Chignik   co-op  allowed                                                              
fishermen  to remain  at  home rather  than  fish.   He  expressed                                                              
concern that  the state  fisheries management  is paralleling  the                                                              
federal system.   He  said, "I do  not want one  more tool  in the                                                              
tool box to allow [BOF] to go there."                                                                                           
                                                                                                                                
9:37:04 AM                                                                                                                    
                                                                                                                                
JOHN  RANTZ, Secretary,  Chignik  Fishermen  United (CFU),  stated                                                              
opposition  to  HB  188.   He  described  the  extreme,  negative,                                                              
socioeconomic impacts,  caused by the cooperative in  Chignik.  He                                                              
expressed  concern  for,  and cautioned  against,  repeating  this                                                              
error.                                                                                                                          
                                                                                                                                
9:39:37 AM                                                                                                                    
                                                                                                                                
MOREY  JONES, President,  Chignik Fishermen  United (CFU),  stated                                                              
opposition to  HB 188, on  behalf of CFU.   He cited the  abuse of                                                              
power exercised  by the  BOF, and the  board's refusal  to respond                                                              
to the local  interests.  The  board was also unwilling  to accept                                                              
the decision of  the Alaska Supreme Court.  Due  to these historic                                                              
actions by the board,  CFU members harbor a fear  of expanding the                                                              
board's authority.  He said:                                                                                                    
                                                                                                                                
     After  our  previous  experience,  through  the  Chignik                                                                   
     allocated co-op,  we know that the BOF will  do, and can                                                                   
     do,  whatever they  want. ...  If the BOF  is given  the                                                                   
     power   of  HB  188,   then  we   don't  need  a   state                                                                   
     constitution,  and we don't  need a legislative  body of                                                                   
     government.   ...  Expanding   [BOF]  authority   is  to                                                                   
     supersede that which is set forth by the legislature.                                                                      
                                                                                                                                
9:42:23 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON reminded  witnesses  that the  committee is  working                                                              
with  the   sponsor  substitute,   Version  K,  which   should  be                                                              
available to everyone.                                                                                                          
                                                                                                                                
9:43:02 AM                                                                                                                    
                                                                                                                                
SCOTT  MCALLISTER,    Member,  Sitka   Sac  Roe  Group,  Southeast                                                              
Seiners,  Marketing  Chair,  United  Fishermen  of  Alaska  (UFA),                                                              
stated support  for HB 188,  and said he  believes in  the system,                                                              
and that  the BOF needs to  have this authority.   He acknowledged                                                              
that the  Chignik co-op was a  BOF error, however, this  bill does                                                              
not give the  BOF the ability to  create co-ops or IFQ's.   If the                                                              
board  is not  provided  this authority,  issues  may  need to  be                                                              
brought  to the  legislature,  which  creates a  lengthy,  costly,                                                              
arduous process.                                                                                                                
                                                                                                                                
9:45:38 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON   read  again  from   the  Grunert   case  [original                                                              
punctuation provided]:                                                                                                          
                                                                                                                                
     The   legislature   must  give   the   board   statutory                                                                   
     authority  to create  a fishery scheme  in which  permit                                                                   
     holders  profit  from  the   harvests  of  other  permit                                                                   
     holders.                                                                                                                   
                                                                                                                                
MR.  MCALLISTER clarified  that the  court is  requiring that  the                                                              
legislature  provide  this  authority  to  the  board,  hence  the                                                              
necessity of HB 188.                                                                                                            
                                                                                                                                
9:46:59 AM                                                                                                                    
                                                                                                                                
FRANK  GRUNERT  stated  opposition   to  HB  188.    He  suggested                                                              
including wording  about processors  not receiving an  allocation.                                                              
He  said  that the  situation  with  the  Chignik co-op  has  been                                                              
devastating to  many fishermen, and  this bill may  create similar                                                              
situations in other areas.                                                                                                      
                                                                                                                                
9:48:49 AM                                                                                                                    
                                                                                                                                
BOB  THORSTENSON, President,  United  Fishermen  of Alaska  (UFA),                                                              
stated support for  HB 188, on behalf of an overwhelming  nod from                                                              
UFA, and  pointed out that the  sponsor substitute does  contain a                                                              
Chignik prohibition.   He  elaborated on  the fisheries  that will                                                              
be  effected  by the  bill,  and  provided  examples of  what  may                                                              
happen if  the board is  not provided this  authority.   He opined                                                              
that this  is an important,  official, housekeeping  measure, that                                                              
has been thoroughly vetted by the UFA.                                                                                          
                                                                                                                                
9:52:22 AM                                                                                                                    
                                                                                                                                
BRUCE WALLACE stated  support for HB 188, and said  that he trusts                                                              
the legislative  necessity for this  action, and for the  board to                                                              
have appropriate authority.                                                                                                     
                                                                                                                                
9:53:53 AM                                                                                                                    
                                                                                                                                
SHAWN  DOCHTERMANN,   Vice  President,  Alaska   Jig  Association,                                                              
stated opposition  to HB 188,  opining that  this bill is  a clean                                                              
up measure  "for all of the mess  that the BOF has  brought before                                                              
us with allocation  measures; they have ... gone  outside of their                                                              
rights  to allocate."   The  issues need  to be sorted  out  on an                                                              
individual basis,  rather than attempting  to correct it  with one                                                              
bill.   He suggested that many  of the stakeholders  are currently                                                              
fishing, and unable to participate in the hearings.                                                                             
                                                                                                                                
9:55:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON directed  attention  to the  bill, page  2,                                                              
line 28 and read:                                                                                                               
                                                                                                                                
        Sec. 3. AS 16.05.251 is amended by adding a new                                                                         
     subsection to read:                                                                                                        
                                                                                                                                
       (j) Nothing in (e) of this section authorizes the                                                                        
     Board of Fisheries, without separate express statutory                                                                     
     authorization, to allocate to                                                                                              
                                                                                                                                
               (1) a cooperative fishery; or                                                                                    
                                                                                                                                
              (2) an individual fisherman based on                                                                              
     individual catch history.                                                                                                  
                                                                                                                                
9:57:20 AM                                                                                                                    
                                                                                                                                
JULIE KAVANAUGH stated  that there is a significant  difference in                                                              
using language in  the bill to specify "among" vs.  "within."  She                                                              
elaborated   on  her   point  that   these  two   words  are   not                                                              
interchangeable  and  alters  the   meaning  of  the  legislation.                                                              
Further,  she said  that the bill  could be  interpreted to  imply                                                              
that  the BOF  has been  operating  in a  constrained manner,  and                                                              
opined that it has not.                                                                                                         
                                                                                                                                
9:59:10 AM                                                                                                                    
                                                                                                                                
JIM ROCKOM  stated  opposition to  HB 188, and  stressed that  BOF                                                              
members  should  be  elected,  not   appointed,  to  minimize  the                                                              
politicalization of the board process.                                                                                          
                                                                                                                                
10:00:07 AM                                                                                                                   
                                                                                                                                
CHARLES  "CHIP" TREINEN  stated  support for  HB  188, citing  the                                                              
supportive restrictions  that have been included in  the SSHB 188,                                                              
and suggested that  some people may be missing that  aspect of the                                                              
bill.   With the  ever changing  aspects of  the fishing  industry                                                              
the  BOF  needs to  have  the  ability  to manage  the  fisheries;                                                              
adapting to the ever changing methods, means, and marketing                                                                     
advances.  He opined that this bill does not effect a radical                                                                   
change.                                                                                                                         
                                                                                                                                
10:02:56 AM                                                                                                                   
                                                                                                                                
JIM PETERSEN stated opposition to HB 188, and opined that                                                                       
inserting the language "within" would further empower the BOF                                                                   
beyond what is necessary.                                                                                                       
                                                                                                                                
10:04:01 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON closed public testimony.                                                                                           
                                                                                                                                
[HB 188 was held over.]                                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Fisheries meeting was adjourned at 10:04.                                                                  

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