Legislature(2011 - 2012)HOUSE FINANCE 519
02/14/2012 05:15 PM House FISHERIES
| Audio | Topic |
|---|---|
| Start | |
| HCR18 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HCR 18 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
February 14, 2012
5:14 p.m.
MEMBERS PRESENT
Representative Steve Thompson, Chair
Representative Craig Johnson, Vice Chair
Representative Alan Austerman
Representative Bob Herron
Representative Scott Kawasaki
Representative Bob Miller
MEMBERS ABSENT
Representative Lance Pruitt
COMMITTEE CALENDAR
HOUSE CONCURRENT RESOLUTION NO. 18
Relating to an examination of fisheries-related programs and
resources in the state to determine how those programs and
resources may best be strengthened and focused to facilitate the
entry of young Alaskans into gainful, lifelong commercial
fisheries careers and to the development of a systematic,
aggressive, and sustained program to turn the tide on the
graying of the fleet and to increase ownership of successful
commercial fisheries operations by young Alaskans.
- MOVED CSHCR 18(FSH) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HCR 18
SHORT TITLE: COMMERCIAL FISHERIES PROGRAMS
SPONSOR(s): FISHERIES
04/17/11 (H) READ THE FIRST TIME - REFERRALS
04/17/11 (H) FSH
02/09/12 (H) FSH AT 5:00 PM CAPITOL 120
02/09/12 (H) Heard & Held
02/09/12 (H) MINUTE(FSH)
02/14/12 (H) FSH AT 5:15 PM HOUSE FINANCE 519
WITNESS REGISTER
TIM CLARK, Staff
Representative Bryce Edgmon
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: explained the changes in the proposed CS
for HCR 18.
PAULA CULLENBERG, Chair
University of Alaska Fairbanks (UAF)
Alaska Sea Grant Marine Advisory Program
Fairbanks, Alaska
POSITION STATEMENT: Presented an overview of the Sea Grant
Marine Advisory Program.
ZACH HILL, Fisherman
Anchorage, Alaska
POSITION STATEMENT: Testified during discussion of the
Committee Substitute (CS) for HCR 18.
BRENDAN HARRINGTON, Fisherman
Kodiak, Alaska
POSITION STATEMENT: Testified during discussion of the
Committee Substitute (CS) for HCR 18.
JASON SHULL, Fisherman
Haines, Alaska
POSITION STATEMENT: Testified during discussion of the
Committee Substitute (CS) for HCR 18.
KENNETH JONES, Fisherman
Cordova, Alaska
POSITION STATEMENT: Testified during discussion of the
Committee Substitute (CS) for HCR 18.
TRACEY NUZZI, Fisherman
Cordova, Alaska
POSITION STATEMENT: Testified during discussion of the
Committee Substitute (CS) for HCR 18.
MOLLY LARSEN, Fisherman
Anchorage, Alaska
POSITION STATEMENT: Testified during discussion of the
Committee Substitute (CS) for HCR 18.
MIKE MICKELSON, Fisherman
Cordova, Alaska
POSITION STATEMENT: Testified during discussion of the
Committee Substitute (CS) for HCR 18.
STEPHEN RHOADS, Fisherman
Sitka, Alaska
POSITION STATEMENT: Testified during discussion of the
Committee Substitute (CS) for HCR 18.
TIMOTHY NICK, Fisherman
Dillingham, Alaska
POSITION STATEMENT: Testified during discussion of the
Committee Substitute (CS) for HCR 18.
JOHN SCOTT, Student
Anchorage, Alaska
POSITION STATEMENT: Testified during discussion of the
Committee Substitute (CS) for HCR 18.
JERRY MCCUNE, Lobbyist
United Fisherman of Alaska
Juneau, Alaska
POSITION STATEMENT: Testified during discussion of the
Committee Substitute (CS) for HCR 18.
RHONDA HUBBARD
Seward, Alaska
POSITION STATEMENT: Testified during discussion of the
Committee Substitute (CS) for HCR 18.
ARNI THOMSON, President
United Fisherman of Alaska
Juneau, Alaska
POSITION STATEMENT: Testified during discussion of the
Committee Substitute (CS) for HCR 18.
ACTION NARRATIVE
5:14:04 PM
CHAIR STEVE THOMPSON called the House Special Committee on
Fisheries meeting to order at 5:14 p.m. Representatives
Thompson, Herron, Austerman, and Kawasaki were present at the
call to order. Representatives Miller and Johnson arrived as
the meeting was in progress.
HCR 18-COMMERCIAL FISHERIES PROGRAMS
5:14:36 PM
CHAIR THOMPSON announced that the only order of business would
be HOUSE CONCURRENT RESOLUTION NO. 18, Relating to an
examination of fisheries-related programs and resources in the
state to determine how those programs and resources may best be
strengthened and focused to facilitate the entry of young
Alaskans into gainful, lifelong commercial fisheries careers and
to the development of a systematic, aggressive, and sustained
program to turn the tide on the graying of the fleet and to
increase ownership of successful commercial fisheries operations
by young Alaskans.
5:15:21 PM
REPRESENTATIVE AUSTERMAN moved to adopt the proposed committee
substitute (CS) for HCR 18, labeled 27-LS0838\B, Bailey/Bullard,
2/13/12, as the working document.
5:15:59 PM
REPRESENTATIVE HERRON objected for discussion.
5:16:14 PM
TIM CLARK, Staff, Representative Bryce Edgmon, Alaska State
Legislature, directed attention to page 3, line 3, of the
proposed committee substitute, Version B. He explained that the
difference between Version B and the original bill was a result
of the recent University of Alaska's seafood and maritime
initiative, which had been introduced after proposed HCR 18. He
read:
What started in June at the University, as a working
group within the University, has evolved into an
enterprise now including industry, CDQ groups, and the
continued participation of the Rasmussen Foundation.
Particularly, in terms of education, training, and
research, the goals of the university-led effort align
closely with the legislature's goal to strengthen
programs and resources in the state in order to
facilitate the entry of the greater number of young
Alaskans into gainful, skipper level, fish harvesting
careers. Given the closeness of this alignment, it
seems that for the legislature to begin its own such
initiative would be duplicative and somewhat
inefficient. Instead, you have before you a Committee
Substitute for HCR 18 that endorses and encourages the
University's fishery, seafood, and maritime
initiative. The CS would also have the Senate
President and House Speaker each appoint one member of
their respective bodies to act as liaisons to the
University's initiative, and report to the legislature
on its progress on a regular basis. These liaisons'
participation would culminate with the report to the
legislature due by June 30, 2013, that would include
recommendations on ways the legislature might
effectively contribute to any action plan developed by
the University's fishery, seafood, and maritime
initiative. Committee staff have conferred with
officials at the University regarding this approach,
and they welcome the legislature's interest, support,
and involvement.
CHAIR THOMPSON pointed out that this would necessitate a title
change for the resolution.
MR. CLARK expressed his agreement, noting that this had been
included in the proposed CS.
5:19:29 PM
REPRESENTATIVE HERRON withdrew his objection. There being no
further objection, Version B was adopted as the working
document.
CHAIR THOMPSON opened public testimony.
5:19:56 PM
PAULA CULLENBERG, Chair, University of Alaska Fairbanks (UAF),
Alaska Sea Grant Marine Advisory Program, explained that the
University of Alaska (UA) Sea Grant Marine Advisory Program was
a statewide marine extension program with extension faculty who
worked closely with the coastal communities, especially on
fisheries, seafood, and related coastal economic issues. She
stated that proposed HCR 18 had resulted out of a concern for
the "graying of the fleet," the increase in the average age of
Alaska's fishermen. She stated that, although this was true for
many Alaska occupations, the sea food industry was the largest
private employer, the largest group of small businesses, and the
economic backbone of many coastal communities. She declared it
to be in the state's interest to plan ahead. She pointed out
that, as many fishermen reach retirement age, they looked to
pass on their fishing business. She cautioned that should these
small fishing boats and permits be sold outside the community,
the community could lose the tax dollars, jobs, and community
support of these small businesses. She confirmed that when
fishing activity and fishing know-how diminished in a community,
community identity and infrastructure could deteriorate. She
offered her belief that this was a very logical, economic
opportunity to make money in rural, coastal Alaska. She
disclosed that young Alaskans used to have this opportunity, but
that the current system required significant up-front capital
outlay, which could be intimidating, if not impossible, for
young people. She stated that there was not a reliable
replacement solution in the transfer mechanism, should the
family transfer system breaks down. She reported that this
transfer was an all or nothing system. During this transition
time, it was good to create a system whereby those businesses
would flow naturally to young Alaskans. She declared that the
purpose of proposed HCR 18 was:
to encourage the State [of Alaska] to establish an
environment that lowers the barriers to entry for
Alaskans, and that might include mechanisms to allow
the passing on of a permit over time to the next
generation, or allowing selected groups to hold
permits in trust for beginning fishermen.
MS. CULLENBERG suggested that the new system could include an
access to capital by Alaskans new to fisheries, or for emerging
fisheries. She declared that the university perspective was to
provide tools and skills for Alaskans entering this business,
including greater financial skills for commercial fishermen,
understanding risk management through safety training,
understanding insurance and liability, improving technical
skills as fishing and markets become more complex and more
demanding, participating in the public regulatory process, and
fostering leadership development. In reference to a recent
inventory of all the UA statewide curriculums and courses for
applicable programs to these occupations, she reported that no
classes or program titles at UA had the words "seafood" or
"fishing" in them. She observed that this lack of education and
training programs, plus the barriers imposed through regulations
and financing created difficulties which needed to be addressed.
5:27:16 PM
MS. CULLENBERG introduced the approximately 50 fishermen
attending the Young Fishermen's Summit, from every aspect and
region of the fishing industry.
5:29:41 PM
ZACH HILL, Fisherman, reported that he grew up set netting and
seining in Kodiak, and that both his father and his uncle were
fishermen. He affirmed that he had recently purchased a seiner
and a Kodiak seine permit. He noted his transition from crew
member to ownership, and indicated that the biggest challenge in
this transition was the cost and the access to financing. He
reported that during the past five years salmon prices had
"risen pretty dramatically and lots of people have been getting
into the industry, and what's that done is driven limited entry
permit prices up, its driven boat prices up ... it's a pretty
significant capital outlay just to get started in a fishery
anymore." He reported that the Department of Commerce
[Community & Economic Development] had offered programs for
Alaskans to enter commercial fishing, but these programs had not
kept pace with the rising costs. He directed attention to
proposed HB 261, calling the proposed bill "a great step in the
right direction, increasing the ceiling for those loan
programs."
CHAIR THOMPSON explained that proposed HB 261 would raise the
ceiling [on loans for purchasing fishing permits] from $100,000
to $200,000.
MR. HILL added that the proposed bill would also increase "the
total limit for Section B loans to $300,000. It definitely
helps with permit costs, and in places for salmon, at least
Prince William Sound, it's nearly $200,000 just to get into the
fishery there. I'm lucky that Kodiak's a little bit cheaper."
He shared that the proposed bill did not address the increase in
boat costs, however.
5:32:37 PM
BRENDAN HARRINGTON, Fisherman, reported that he was a life-long
fisherman of cod, halibut, black cod, scallops and crab. He
reflected that, although many people were framing the resource
conflict as between sport charter and commercial fishermen, the
by-catch issue was not included in any discussions, even though
by-catch was enormous. He suggested one option to be an
increase of observer coverage to 100 percent, including boats
less than 60 feet in length, as many new technologies help lower
the cost and the burden to smaller boats. He suggested the
installation of technology, including rail side cameras, and
declared there to be "a lot of support amongst fishermen my age,
we're not afraid of observer coverage. We know we operate good
clean fisheries and we wouldn't have a problem ... we're not
averse to new technologies." He emphasized a need for action in
the halibut industry "before there's nothin' left for us to fish
for in the next generation."
5:36:16 PM
JASON SHULL, Fisherman, stated that he was born in Haines, had
worked as a fisheries biologist, and had been gillnetting for
three years. He shared that he had no commercial fishing
experience when he had decided to become a fisherman. He stated
that CFAB (Alaska Commercial Fishing and Agriculture Bank) was
the funding source for his start-up as a commercial fisherman,
and he announced that the loan for the permit and boat was being
paid off. He reported that he was now the president of the Lynn
Canal Gillnetters Association. He emphasized that although
every loan provided to a fisherman counted, loans were not
enough. He urged the legislature to continue supporting
workshops, educational opportunities, and apprenticeships.
5:40:05 PM
KENNETH JONES, Fisherman, informed the committee that he was a
third generation Alaskan fisherman out of Cordova. He declared
that the state economy was extensively based in commercial
fishing, and that it was necessary to increase the loan limits
to keep in line with the cost of permits and equipment. He
expressed his support.
5:42:11 PM
TRACEY NUZZI, Fisherman, established that she was a commercial
fisherman from Cordova, and that she had just purchased a drift
gillnet permit for the Copper River. She shared that
conversations and support from three state agencies had made
this possible. She expressed her support.
5:45:05 PM
MOLLY LARSEN, Fisherman, said that she was a third generation
set netter from Kodiak, and that she was currently studying
biology and environmental policy at a college in the State of
Washington. She shared that she had plans to return to Alaska,
and possibly purchase a drift net permit. She endorsed that
young Alaskans were returning to Alaska with a desire to enter
the fishing industry, and that this was a good investment for
the state and the local communities.
5:46:59 PM
MIKE MICKELSON, Fisherman, declared that he was part of
that first generation of fishermen who had left for college
after the oil spill in Prince William Sound, but had now
returned to join the fleet. He shared that this would be
his second season with his gill net permit. He stated his
support for the state loan programs, and expressed the need
for vessel prices to each specific fishery be included in
the loan program parameters. He reported that Alaska
Department of Fish & Game (ADF&G) had, on several
occasions, prematurely closed a fishery due to a lack of
funding to complete escapement counts.
5:50:26 PM
STEPHEN RHOADS, Fisherman, ascertained that he was lured to
Alaska by the fishing industry in 1996. He shared that the
state loan program had made fishing a viable business for him,
as it was an incentive to keep the "fisheries in the hands of
Alaskans." He expressed his pleasure for the positive
interactions he had with the agencies, and to be in Alaska,
working as a fisherman, and raising his family.
5:51:57 PM
TIMOTHY NICK, Fisherman, provided a brief history of his fishing
career, and shared the hardships of the fishing industry. He
expressed support for HCR 18 as it would allow young fishermen
the opportunity in Alaska.
5:54:51 PM
JOHN SCOTT, Student, said that he was attending school in
Fairbanks, and worked during the summer as a deckhand on a
fishing boat. He confirmed the necessity for available loan
programs to allow him to purchase a boat and fishing permit.
5:56:25 PM
JERRY MCCUNE, Lobbyist, United Fisherman of Alaska, stated his
support for the Alaska Sea Grant program. He declared the need
for fishermen to have a better understanding of business, back-
up plans, and objectives.
5:58:42 PM
RHONDA HUBBARD reported that she had been a participant in all
of the Alaska Young Fishermen's Summits, as the program assisted
young people to become professionals in the industry. She
stated her support for HCR 18.
5:59:56 PM
ARNI THOMSON, President, United Fisherman of Alaska,
acknowledged the Young Fisherman's Summit and reported how
encouraging it was to see the young people return to the state
from out-of-state universities. He endorsed the educational
needs assessment being conducted by University of Alaska, in
conjunction with the Alaska Sea Grant program and the Rasmussen
Foundation.
6:01:33 PM
CHAIR THOMPSON closed public testimony.
6:01:44 PM
CHAIR THOMPSON moved to adopt Conceptual Amendment 1.
REPRESENTATIVE JOHNSON objected for discussion.
CHAIR THOMPSON explained Conceptual Amendment 1, which read
[original punctuation provided]:
Page 3, Line 1:
After "industry" insert:
", and the University of Alaska Southeast
fisheries technology program exposes young people
to harvesting careers in commercial fishing and
offers programs in aquaculture and fisheries
management"
CHAIR THOMPSON explained that the original Committee Substitute
(CS) had not included this program, which was directly aligned
with the proposed intent of HCR 18.
REPRESENTATIVE JOHNSON removed his objection. There being no
further objection, Conceptual Amendment 1 was passed.
6:02:45 PM
REPRESENTATIVE JOHNSON moved to report HCR 18, as amended, out
of committee with individual recommendations and zero fiscal
notes. There being no objection, CSHCR 18(FSH) was reported
from the House Special Committee on Fisheries.
6:03:15 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Fisheries meeting was adjourned at 6:03
p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HCR 18 Draft CS 27-LS0838 backslash B.pdf |
HFSH 2/14/2012 5:15:00 PM |
HCR 18 |
| HCR18 0 Fiscal Note.pdf |
HFSH 2/14/2012 5:15:00 PM |
HCR 18 |
| HCR 18 Ben Brown memo to Rep Thompson.pdf |
HFSH 2/14/2012 5:15:00 PM |
HCR 18 |