Legislature(2013 - 2014)CAPITOL 120

03/06/2014 10:00 AM House FISHERIES


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10:07:10 AM Start
10:07:33 AM Presentation: Community Fishing Associations - Establishing a Successful Community Based Model to Meet the Specific Goals and Objectives of a Gulf of Alaska Catch Share Program
10:34:40 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: "Community Fishing Associations - TELECONFERENCED
Establishing a Successful Community Based Model
to Meet the Specific Goals & Objectives of a Gulf
of Alaska Catch Share Program"
+ Mariculture Overview: "Regulatory Structure & TELECONFERENCED
Potentials for Expansion of the Industry"
<Above Item Removed from Agenda>
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                         March 6, 2014                                                                                          
                           10:05 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Paul Seaton, Chair                                                                                               
Representative Lynn Gattis                                                                                                      
Representative Jonathan Kreiss-Tomkins                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Eric Feige                                                                                                       
Representative Bob Herron                                                                                                       
Representative Craig Johnson                                                                                                    
Representative Kurt Olson                                                                                                       
                                                                                                                                
OTHER MEMBERS PRESENT                                                                                                         
                                                                                                                                
Representative Austerman                                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION:  COMMUNITY FISHING ASSOCIATIONS - ESTABLISHING A                                                                  
SUCCESSFUL COMMUNITY BASED MODEL TO MEET THE SPECIFIC GOALS AND                                                                 
OBJECTIVES OF A GULF OF ALASKA CATCH SHARE PROGRAM                                                                              
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
THERESA PETERSON, Kodiak Outreach Coordinator                                                                                   
Alaska Marine Conservation Council (AMCC)                                                                                       
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Gave a presentation entitled "Community                                                                  
Fishing Associations."                                                                                                          
                                                                                                                                
TERRY HAINES                                                                                                                    
Alaska Marine Conservation Council (AMCC)                                                                                       
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of the                                                                       
presentation on Community Fishing Associations.                                                                                 
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
10:07:10 AM                                                                                                                   
                                                                                                                                
CHAIR  PAUL   SEATON  called  the  House   Special  Committee  on                                                             
Fisheries  meeting  to  order  at  10:05  a.m.    Representatives                                                               
Kreiss-Tomkins, Gattis,  and Seaton were  present at the  call to                                                               
order.  Representative Austerman was also in attendance.                                                                        
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
^PRESENTATION:   Community Fishing Associations -  Establishing a                                                               
successful community based  model to meet the  specific goals and                                                               
objectives of a Gulf of Alaska Catch Share Program                                                                              
PRESENTATION:  Community Fishing Associations - Establishing a                                                              
successful community based model to meet the specific goals and                                                             
objectives of a Gulf of Alaska Catch Share Program                                                                          
                                                                                                                                
CHAIR SEATON announced  that the only order of  business would be                                                               
a presentation on Community Fishing Associations.                                                                               
                                                                                                                                
10:07:33 AM                                                                                                                   
                                                                                                                                
THERESA  PETERSON,  Kodiak  Outreach Coordinator,  Alaska  Marine                                                               
Conservation  Council  (AMCC),   stated  that  Community  Fishing                                                               
Associations were  a means to strengthen  the fishing communities                                                               
in Alaska during  the Gulf of Alaska catch share  program for the                                                               
trawl  fleet.   She explained  that this  presentation, slide  1,                                                               
"Presentation Overview," would be about  the Gulf of Alaska trawl                                                               
bycatch management program, and it  would look at lessons learned                                                               
from past programs, as Alaska  has had decades of experience with                                                               
these catch share  programs.  She will  discuss Community Fishing                                                               
Associations  and  how they  can  help  protect Alaska's  coastal                                                               
communities  and noted  a  need to  keep  communities "front  and                                                               
center"  as new  program designs  were discussed.   She  directed                                                               
attention  to  slide  2,  "Background:  Gulf  of  Alaska  Bycatch                                                               
Management Program," and, in response  to Chair Seaton, clarified                                                               
that  the North  Pacific Fishery  Management Council  (NPFMC) was                                                               
currently designing a  new program for the Gulf  of Alaska geared                                                               
at  reducing  the  bycatch.     She  said  that,  as  there  were                                                               
significant  declines  in  Chinook salmon,  halibut,  and  Tanner                                                               
crab, bycatch reduction was imperative.   She stated a desire for                                                               
a  new management  structure geared  toward reducing  the bycatch                                                               
and better  utilizing the target  species.  She pointed  out that                                                               
there  were other  user groups  dependent  on the  aforementioned                                                               
species.  She projected that the  new structure should be a catch                                                               
share or a rationalization program,  which would allocate species                                                               
based on a vessels' historical  catch, and the vessels would form                                                               
a cooperative with  a processor.  She said that  this would be an                                                               
improvement  to  past programs  and  resource  management, as  it                                                               
would  end  the  race  for  fish  and  would  provide  individual                                                               
accountability.                                                                                                                 
                                                                                                                                
10:11:48 AM                                                                                                                   
                                                                                                                                
MS.  PETERSON moved  on to  slide 3,  "Lessons Learned  from Past                                                               
Catch  Share Programs,"  and noted  that, although  Alaska had  a                                                               
tremendous amount of  experience with these programs,  not all of                                                               
these  were positive  for the  coastal communities.   She  listed                                                               
some of the impacts to  include absentee ownership of quota, high                                                               
leasing fees, rapid vessel consolidation,  lower crew pay and job                                                               
loss, and an out-migration of  fishing rights and wealth from the                                                               
rural  fishing  communities.    She stated  that  there  was  the                                                               
desire, the knowledge, and the  understanding to design a program                                                               
geared to the future health of the communities.                                                                                 
                                                                                                                                
MS. PETERSON showed slide 4, "What  is a CFA?," and stated that a                                                               
Community  Fishing  Association  (CFA)  was  a  tool  to  protect                                                               
communities  within  catch  share   programs,  and  she  detailed                                                               
successful examples in Cape Cod  and Morro Bay, communities which                                                               
had anchored  quota to the  community thereby  building resilient                                                               
fishing communities.   She  said that  direct allocations  to the                                                               
fishing communities  were authorized in the  2006 reauthorization                                                               
of the Magnuson-Stevens Act.  She  pointed out that the CFA model                                                               
was for  allocated quota, which  was leased at a  reasonable rate                                                               
to  the  current participants  and  new  entrants, based  on  the                                                               
criteria developed and designed by the  CFA.  She stated that the                                                               
CFA  could  effectively anchor  the  quota  to the  community  in                                                               
perpetuity, as no  other tool would ensure the  quota remained in                                                               
the  community.    She  emphasized that  this  would  keep  these                                                               
fishing rights in the community.                                                                                                
                                                                                                                                
10:15:06 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS inquired  about  past catch  share                                                               
programs and when  a quota was moved from a  community, where was                                                               
it moved and to what cost to the rural community.                                                                               
                                                                                                                                
MS. PETERSON replied that in  the current catch share structures,                                                               
as an  individual owned  the quota rights,  they could  choose to                                                               
live  anywhere  and  could  use lease  fees  to  extract  revenue                                                               
through the fisheries resource.                                                                                                 
                                                                                                                                
CHAIR SEATON clarified that the  state management program did not                                                               
allow  this, instead  requiring  the  owner of  the  quota to  be                                                               
onboard the  boat; however,  federal management  programs allowed                                                               
absentee ownership.                                                                                                             
                                                                                                                                
REPRESENTATIVE GATTIS asked that,  although the quota owner could                                                               
be onboard  the boat,  could they  live outside  of Alaska.   She                                                               
asked if  there was  a correlation with  being onboard  and where                                                               
someone lived.                                                                                                                  
                                                                                                                                
CHAIR SEATON explained  that the limited entry  programs in state                                                               
waters  required the  owner to  be onboard;  however, in  federal                                                               
waters the rights  were attached to the vessel and  the owner did                                                               
not need to be onboard.                                                                                                         
                                                                                                                                
REPRESENTATIVE GATTIS asked  if the permit owner  was required to                                                               
be a  resident of  Alaska.   She asked if  an absentee  owner was                                                               
defined as a non-resident to that specific community.                                                                           
                                                                                                                                
MS. PETERSON said that under  the federal fisheries programs, the                                                               
owner could  be a  resident or non-resident.   Under  the current                                                               
construct for  some of the  federal catch share programs,  it was                                                               
not necessary for  the owner to be onboard during  the harvest of                                                               
fish.  She said that  the proposed program would be significantly                                                               
different  from other  programs,  acknowledging  that there  were                                                               
very distinct  differences between  federal and  state management                                                               
of the fisheries.                                                                                                               
                                                                                                                                
REPRESENTATIVE  GATTIS  asked  for clarification  that  "onboard"                                                               
required physical presence on the  boat while fishing and whether                                                               
residence in the state or the community was also addressed.                                                                     
                                                                                                                                
CHAIR  SEATON  replied  that these  were  distinct  designations.                                                               
When  fishing in  state  waters, it  was not  necessary  to be  a                                                               
resident of the  state or the community, but the  owner had to be                                                               
on  the boat.   When  fishing in  federal waters,  the quota  was                                                               
distributed to the vessel, and not  to the owner, so presence was                                                               
not required.                                                                                                                   
                                                                                                                                
10:19:36 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS asked  about out-of-state ownership                                                               
for quota shares in other Alaska fisheries.                                                                                     
                                                                                                                                
MS. PETERSON explained  that a significant number  of the vessels                                                               
that  participated in  the Gulf  of Alaska  trawl fisheries  were                                                               
home  ported primarily  in Washington  and Oregon.   She  allowed                                                               
that  there were  some resident  Kodiak-based trawlers,  and they                                                               
had a tendency to hire local crews.                                                                                             
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS asked for  clarification that a CFA                                                               
would be  a mechanism to ensure  that the right to  fish would be                                                               
for an Alaska port.                                                                                                             
                                                                                                                                
MS.  PETERSON expressed  her agreement  that a  primary goal  and                                                               
objective of the  CFA was for the community to  own the quota and                                                               
provide for the  resident fleet, noting that Kodiak  was one area                                                               
that depended on this activity.                                                                                                 
                                                                                                                                
10:21:28 AM                                                                                                                   
                                                                                                                                
MS. PETERSON  addressed slide  6, stating  that the  CFA provided                                                               
fishermen  with  an  opportunity   to  enter  the  fisheries  and                                                               
provided  access  for  coastal  communities.   She  relayed  that                                                               
testimony from other communities had  stated that the CFA program                                                               
would  benefit  significantly  from   an  initial  allocation  of                                                               
fishing  quota   to  the  community,  which   would  provide  the                                                               
opportunity  to  maintain and  build  strong  local business,  an                                                               
ownership which the community could  plan around.  She emphasized                                                               
that  when the  community was  involved in  the decision  making,                                                               
diversity and  involvement with  community values  was reflected.                                                               
Turning to  slide 9, "Next  Steps," she said that  development of                                                               
the  program was  at a  critical crossroads.   She  reported that                                                               
NPFMC  would commence  to review  the issue  in April,  2014, and                                                               
then begin  to refine  its program  design.   She said  that CFAs                                                               
were not  currently part  of this  program design  discussion and                                                               
emphasized  that communities  should have  an ownership  stake in                                                               
the fishing  resource and  a portion of  the quota  be considered                                                               
for anchorage  in the community.   She said that  this allocation                                                               
should be a part of the NPFMC discussion and analysis.                                                                          
                                                                                                                                
10:24:44 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS  asked if  it  would  help if  the                                                               
council heard from the Alaska State Legislature.                                                                                
                                                                                                                                
MS.   PETERSON  expressed   her   agreement,  acknowledging   the                                                               
difficulty  for tracking  the  major  fishery policy  discussions                                                               
that influenced the  state future.  She concluded  with slide 10,                                                               
stating that  CFAs presented a significant  opportunity to ensure                                                               
that  coastal communities  retained the  ability to  access their                                                               
fisheries.   She  said that  the Gulf  of Alaska  had many  small                                                               
communities  which  were dependent  on  access  to the  fisheries                                                               
resource, and this is an opportunity  to design a program that is                                                               
best for Alaska communities.                                                                                                    
                                                                                                                                
CHAIR  SEATON  acknowledged  the importance  of  maintaining  the                                                               
health of  coastal communities across Alaska  and the committee's                                                               
responsibility to support that.                                                                                                 
                                                                                                                                
10:27:06 AM                                                                                                                   
                                                                                                                                
TERRY HAINES,  Alaska Marine Conservation Council  (AMCC), shared                                                               
that he had  also served on the Kodiak City  Council for the past                                                               
10 years.   He  stated that  his decisions  were determined  by a                                                               
practical  concern for  "dollars and  cents," and  he offered  an                                                               
example  from  the crab  industry  for  what  can happen  to  the                                                               
economic  viability of  a local  area when  absentee owners  were                                                               
allowed.    He reported  that  the  local fisherman  received  15                                                               
percent of the profit with 85  percent being paid directly to the                                                               
owner, even with  no active participation.  He  declared that the                                                               
risk  was shifted  to  the working  Alaskan  fisherman, with  the                                                               
benefit  to the  non-participating quota  share owner,  who could                                                               
take the  value outside  the state.   He  stated that  an initial                                                               
allocation  under the  CFA  concept  could anchor  a  lot of  the                                                               
fishery  resource to  the local  community.   He  said that  this                                                               
program discussion was only for  the trawl-caught cod and pollock                                                               
fisheries.   This would ensure  the continued  economic viability                                                               
and robust economy  for the community.  He noted  that many rural                                                               
communities  were struggling  and CFAs  could support  them.   He                                                               
asked that  the governor's office  put consideration of  CFAs "on                                                               
the  table"  as an  endorsement  for  continued analysis  by  the                                                               
communities.   He said that the  current plans did not  allow for                                                               
this program to be considered.                                                                                                  
                                                                                                                                
10:30:43 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS  offered   his  belief  that  CFAs                                                               
simply  offered the  opportunity for  Gulf of  Alaska fish  to be                                                               
caught by  Alaskans and  to recognize  the economic  benefit from                                                               
staying in  state.  He  suggested that the legislature  and House                                                               
Special Committee  on Fisheries  state its  support to  the NPFMC                                                               
for the CFA program.                                                                                                            
                                                                                                                                
10:31:27 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE GATTIS surmised  that a quota owner  takes a risk,                                                               
even though  it may  not be  a daily  risk.   She asked  that Mr.                                                               
Haines elaborate on the risk.                                                                                                   
                                                                                                                                
MR. HAINES explained  that the person who  was transitioning into                                                               
the fishery  had to take  a large financial  risk to buy  in, but                                                               
during the initial distribution  of the allocation, these permits                                                               
to the  resource will be  given based on  the risk taken  to this                                                               
point.   He explained that  the boat  typically had a  40 percent                                                               
share, with  the remainder  divided among  the participants.   He                                                               
expressed his  agreement with this  percent based on the  risk in                                                               
boat ownership.  He explained  that the current program allowed a                                                               
permit owner to  have other boats and fishermen  work the permit,                                                               
and he said that this "is the  sinister part of the program."  He                                                               
added that, although  Alaskans were doing the  fishing, they were                                                               
not receiving the value, but a much lower compensation.                                                                         
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS   opined  that  it   sounded  like                                                               
sharecropping.                                                                                                                  
                                                                                                                                
MR.  HANES replied  that  this  term had  often  been applied  to                                                               
describe the current program.                                                                                                   
                                                                                                                                
CHAIR  SEATON declared  that  a  goal of  the  committee was  for                                                               
Alaska resources  to benefit Alaskans,  for Alaskans to  have the                                                               
opportunity  to participate  in  the fisheries,  and to  maintain                                                               
resilient coastal communities.                                                                                                  
                                                                                                                                
10:34:40 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special  Committee on  Fisheries meeting  was adjourned  at 10:34                                                               
a.m.                                                                                                                            

Document Name Date/Time Subjects
CFA handout.pdf HFSH 3/6/2014 10:00:00 AM
community fishing associations
CFA Presentation to House Fisheries 3.6.14 FINAL.pptx HFSH 3/6/2014 10:00:00 AM
cfa