Legislature(2015 - 2016)GRUENBERG 120

03/24/2016 10:00 AM House FISHERIES

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10:08:16 AM Start
10:08:43 AM Alaska Board of Fisheries (bof)
10:33:35 AM HB300
11:06:38 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearings: TELECONFERENCED
- Fishermen's Fund Advisory & Appeals Council
- Board of Fisheries
*+ HB 300 FISH/SHELLFISH HATCHERY/ENHANCE. PROJECTS TELECONFERENCED
Moved CSHB 300(FSH) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                         March 24, 2016                                                                                         
                           10:08 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Louise Stutes, Chair                                                                                             
Representative Neal Foster                                                                                                      
Representative Charisse Millett                                                                                                 
Representative Jonathan Kreiss-Tomkins                                                                                          
Representative Dan Ortiz                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Bob Herron                                                                                                       
Representative Craig Johnson                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARINGS(S):                                                                                                       
                                                                                                                                
Fishermen's Fund Advisory Panel                                                                                               
                                                                                                                                
     Renee Weddle Alward - Homer                                                                                                
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
Alaska Board of Fisheries (BOF)                                                                                               
                                                                                                                                
     Israel Payton - Wasilla                                                                                                    
     Robert Ruffner - Soldotna                                                                                                  
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
HOUSE BILL NO. 300                                                                                                              
"An  Act  relating to  management  of  enhanced stocks  of  fish;                                                               
authorizing  the  operation  of nonprofit  shellfish  hatcheries;                                                               
relating to  application fees for  salmon and  shellfish hatchery                                                               
permits; and providing for an effective date."                                                                                  
                                                                                                                                
     - MOVED CSHB 300(FSH) OUT OF COMMITTEE                                                                                     
                                                                                                                                
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 300                                                                                                                  
SHORT TITLE: FISH/SHELLFISH HATCHERY/ENHANCE. PROJECTS                                                                          
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/05/16       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/05/16       (H)       FSH, FIN                                                                                               
03/24/16       (H)       FSH AT 10:00 AM GRUENBERG 120                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
RENEE ALWARD, Appointee                                                                                                         
Homer, Alaska                                                                                                                   
POSITION STATEMENT:   Testified  as appointee to  the Fishermen's                                                             
Fund Advisory Panel.                                                                                                            
                                                                                                                                
ISREAL PAYTON, Appointee                                                                                                        
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT:   Testified as appointee to  the Alaska Board                                                             
of Fisheries (BOF).                                                                                                             
                                                                                                                                
RICHARD MCGAHAN SR., Fisherman                                                                                                  
Nikiski, Alaska                                                                                                                 
POSITION STATEMENT:   Testified in opposition  to the appointment                                                             
of Israel Payton to the Alaska Board of Fisheries.                                                                              
                                                                                                                                
FRED STURMAN, Fisherman                                                                                                         
Soldotna, Alaska                                                                                                                
POSITION STATEMENT:   Testified in opposition  to the appointment                                                             
of Israel Payton to the Alaska Board of Fisheries (BOF).                                                                        
                                                                                                                                
SAM COTTEN, Commissioner                                                                                                        
Alaska Department of Fish & Game (ADF&G)                                                                                        
Juneau, Alaska                                                                                                                  
POSITION   STATEMENT:     Responded  to   questions  during   the                                                             
confirmation  hearings  of  appointees  to the  Alaska  Board  of                                                               
Fisheries (BOF).                                                                                                                
                                                                                                                                
PAUL SHADURA, II, Spokesperson                                                                                                  
South K-Beach Independent Fishermen's Association (SOKI)                                                                        
Kenai, Alaska                                                                                                                   
POSITION STATEMENT:   Testified in  support of Alan  Cain, Israel                                                             
Payton  and Robert  Ruffner  as appointees  to  the Alaska  State                                                               
Board of Fisheries (BOF).                                                                                                       
                                                                                                                                
BIRCH YUKNIS, Member                                                                                                            
Matanuska-Susitna Fisheries Advisory Committee                                                                                  
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of the appointment of                                                               
Israel Payton to the Alaska Board of Fisheries (BOF).                                                                           
                                                                                                                                
ROBERT RUFFNER, Appointee                                                                                                       
Alaska Board of Fisheries (BOF)                                                                                                 
Soldotna, Alaska                                                                                                                
POSITION STATEMENT:  Testified as appointee to the Alaska Board                                                               
of Fisheries (BOF).                                                                                                             
                                                                                                                                
RICHARD MCGAHAN                                                                                                                 
Nikiski, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of the appointment of                                                               
Robert Ruffner to the Alaska Board of Fisheries (BOF).                                                                          
                                                                                                                                
FRED STURMAN                                                                                                                    
Soldotna, Alaska                                                                                                                
POSITION STATEMENT:  Testified in support of the appointment of                                                               
Robert Ruffner to the Alaska Board of Fisheries (BOF).                                                                          
                                                                                                                                
SAM COTTEN, Commissioner                                                                                                        
Alaska Department of Fish & Game (ADF&G)                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 300 on behalf of the                                                                       
governor.                                                                                                                       
                                                                                                                                
FOREST BOWERS, Deputy Director                                                                                                  
Division of Commercial Fisheries                                                                                                
Alaska Department of Fish & Game (ADF&G)                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Responded to questions during the hearing                                                                
on HB 300.                                                                                                                      
                                                                                                                                
HEATHER MCCARTY, Spokesperson                                                                                                   
Central Bering Sea Fishermen's Association                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 300.                                                                          
                                                                                                                                
JULIE DECKER, Executive Director                                                                                                
Alaska Fisheries Development Foundation                                                                                         
Wrangell, Alaska                                                                                                                
POSITION STATEMENT:  Testified in support of HB 300.                                                                          
                                                                                                                                
NANCY HILLSTRAND                                                                                                                
Pioneer Alaskan Fisheries                                                                                                       
Kachemak Bay, Alaska                                                                                                            
POSITION STATEMENT:  Testified in opposition to HB 300.                                                                       
                                                                                                                                
GINNY ECKERT, PhD, Professor                                                                                                    
University of Alaska Fairbanks (UAF)                                                                                            
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 300.                                                                          
                                                                                                                                
CHRIS MIERZEJEK, Director of Administration                                                                                     
Community Development Quota (CDQ)                                                                                               
Aleutian  Pribilof   Island  Community   Development  Association                                                               
(APICDA)                                                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 300.                                                                          
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
10:08:16 AM                                                                                                                   
                                                                                                                                
CHAIR  LOUISE  STUTES  called  the  House  Special  Committee  on                                                             
Fisheries  meeting  to  order  at  10:08  a.m.    Representatives                                                               
Stutes, Foster,  Millett, and Ortiz  were present at the  call to                                                               
order.  Representative Kreiss-Tomkins  arrived as the meeting was                                                               
in progress.                                                                                                                    
^CONFIRMATION HEARING(S):                                                                                                       
                   CONFIRMATION HEARING (S):                                                                                
^Fishermen's Fund Advisory Panel                                                                                                
                Fishermen's Fund Advisory Panel                                                                             
                                                                                                                                
^Alaska Board of Fisheries (BOF)                                                                                                
                Alaska Board of Fisheries (BOF)                                                                             
                                                                                                                                
10:08:43 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES announced that the  first order of business would be                                                               
confirmations  to the  Fishermen's  Fund Advisory  Panel and  the                                                               
Alaska Board of Fisheries (BOF).                                                                                                
                                                                                                                                
CHAIR STUTES reminded members that  signing the reports regarding                                                               
appointments  to  boards  and  commissions  in  no  way  reflects                                                               
individual members'  approval or  disapproval of  the appointees,                                                               
and  that  the  nominations  are merely  forwarded  to  the  full                                                               
legislature for confirmation or rejection.                                                                                      
                                                                                                                                
10:09:24 AM                                                                                                                   
                                                                                                                                
RENEE  ALWARD, Appointee,  provided  a brief  biography and  work                                                               
history  which  included  participation  in  many  areas  of  the                                                               
fishing industry, as  well as employment as support  staff in the                                                               
medical field. She  cited her interests in serving  on the board,                                                               
stating  commitment  to  the health  and  longevity  of  Alaska's                                                               
sustainable fisheries.   The passion she holds  for the industry,                                                               
as  well   as  her  understanding  of   medical  terminology  and                                                               
processes,  will be  a good  base  for providing  support to  the                                                               
advisory panel, she opined.                                                                                                     
                                                                                                                                
10:12:27 AM                                                                                                                   
                                                                                                                                
CHAIR  STUTES  opened  and, seeing  no  response,  closed  public                                                               
testimony.                                                                                                                      
                                                                                                                                
10:12:33 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  MILLETT  moved  to advance  the  confirmation  of                                                               
Renee Alward,  appointee to the Fishermen's  Fund Advisory Panel,                                                               
to a  joint session  of the House  and Senate  for consideration.                                                               
There being no objection, the confirmation was advanced.                                                                        
                                                                                                                                
10:12:55 AM                                                                                                                   
                                                                                                                                
ISREAL  PAYTON,  Appointee,  introduced  himself  as  a  lifelong                                                               
Alaskan, paraphrasing  from a prepared  statement, which  read as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     I was  birthed by my father  and mother in a  12X12 log                                                                    
     trapper's cabin  at the  base of  the Alaska  Range, on                                                                    
     the Hayes River.   Being 75 air miles  from the nearest                                                                    
     hospital my  parents weighted me  with a  Zebco fishing                                                                    
     scale.   I grew  up in  the bush,  learning early  on a                                                                    
     deep respect  for fish and wildlife  resources since we                                                                    
     subsisted off  of them.  This  upbringing has instilled                                                                    
     me with the values I live my life by today.                                                                                
                                                                                                                                
     Like many  Alaskans I have  had various jobs to  make a                                                                    
     living;  airplane   mechanic,  boat   builder,  welder,                                                                    
     fishing  and hunting  guide,  slope worker,  wilderness                                                                    
     professional, house  builder, and landlord.   Currently                                                                    
     I  work  at  Airframes  Alaska,  the  largest  aviation                                                                    
     company in the state.                                                                                                      
                                                                                                                                
     I  have fished,  hunted  and worked  in many  different                                                                    
     parts of  the state,  and have  a diverse  knowledge of                                                                    
     Alaska Game and Fish as a whole.   I am a member of the                                                                    
     Mat-Su Fish  and Game  Advisory Committee  and actively                                                                    
     participate in  the Board of  Games and  Fish meetings.                                                                    
     I am constantly trying  to recruit other young Alaskans                                                                    
      in these processes as they are truly unique.  In no                                                                       
        other state can a single individual have so much                                                                        
     impact on passing a fish and game regulation.                                                                              
                                                                                                                                
MR. PAYTON  pointed out that  he currently works for  an aviation                                                               
company,  which  provides  him  an  easy,  economical  means  for                                                               
traveling around the state.                                                                                                     
                                                                                                                                
10:15:27 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES opened public testimony.                                                                                           
                                                                                                                                
10:15:54 AM                                                                                                                   
                                                                                                                                
RICHARD  MCGAHAN   SR.,  Fisherman,  stated  opposition   to  the                                                               
appointment  of Israel  Payton to  the BOF,  and opined  that the                                                               
board  seat should  have  a biologist  appointed  versus a  sport                                                               
fishing  guide.   Besides a  biologist, he  said the  board would                                                               
benefit from seating an old  commercial fisherman from Cook Inlet                                                               
who knows the system and knows what needs to be done.                                                                           
                                                                                                                                
10:16:55 AM                                                                                                                   
                                                                                                                                
FRED STURMAN, Fisherman, stated  opposition to the appointment of                                                               
Israel Payton to the BOF, stating  that the board needs to have a                                                               
biologist seated.                                                                                                               
                                                                                                                                
REPRESENTATIVE  MILLETT  queried  whether  the  opposition  being                                                               
voiced is due  to a disparity in regional seating  or interest in                                                               
having a biologist appointed.                                                                                                   
                                                                                                                                
MR.  MCGAHAN restated  his opposition,  citing a  need to  have a                                                               
regional,  Cook Inlet,  commercial fisherman  appointed; one  who                                                               
knows the area and  the industry.  He said Mr.  Payton has been a                                                               
Kenai  River sport  fishing guide,  not  a commercial  fisherman.                                                               
However,  a biologist  is needed  to run  the Cook  Inlet fishery                                                               
appropriately and in accordance with state law, he opined.                                                                      
                                                                                                                                
10:18:46 AM                                                                                                                   
                                                                                                                                
MR. STURMAN  said the BOF has  not seated anyone from  Cook Inlet                                                               
for many years, and  it's time for that to change.   A Cook Inlet                                                               
biologist, with an understanding of  the areas problems, would be                                                               
best, he opined,  and said he is not familiar  with the candidate                                                               
on a personal basis.                                                                                                            
                                                                                                                                
REPRESENTATIVE MILLETT  surmised that the request  is for seating                                                               
a  biologist  or a  commercial  fisherman  from Cook  Inlet,  but                                                               
definitely not a sport fisherman.                                                                                               
                                                                                                                                
MR.   STURMAN  underscored   that   a  biologist   with  a   full                                                               
understanding of the Cook Inlet  fishery is who should be seated.                                                               
A  biologist would  be able  to  ensure that  the commercial  and                                                               
sport  harvests  can  be  optimized.    He  said  last  year  the                                                               
commercial  fishery  experienced  an  inopportune  closure  which                                                               
resulted in a million harvestable  fish escaping unnecessarily up                                                               
river.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  MILLETT  asked  whether the  Cook  Inlet  closure                                                               
mentioned was a decision made by the department or the board.                                                                   
                                                                                                                                
10:20:54 AM                                                                                                                   
                                                                                                                                
SAM  COTTEN,  Commissioner,  Alaska  Department of  Fish  &  Game                                                               
(ADF&G), said the BOF describes  and writes the management plans,                                                               
which the department attempts to follow as closely as possible.                                                                 
                                                                                                                                
REPRESENTATIVE MILLETT noted that  the closure was facilitated by                                                               
ADF&G in  accordance with  the management plan  set forth  by the                                                               
BOF.                                                                                                                            
                                                                                                                                
10:21:40 AM                                                                                                                   
                                                                                                                                
CHAIR  STUTES  referred  to  statue,   and  paraphrased  from  AS                                                               
16.05.221 which read as follows:                                                                                                
                                                                                                                                
     Sec. 16.05.221.  Boards of fisheries and game.                                                                             
          (a) ... The governor shall appoint each member on                                                                     
     the  basis   of  interest   in  public   affairs,  good                                                                    
     judgment,  knowledge,  and  ability  in  the  field  of                                                                    
     action  of the  board,  and with  a  view to  providing                                                                    
     diversity  of  interest  and  points  of  view  in  the                                                                    
     membership. ...                                                                                                            
                                                                                                                                
CHAIR STUTES established that the  appointments are not made with                                                               
regard to regional seats.                                                                                                       
                                                                                                                                
10:22:22 AM                                                                                                                   
                                                                                                                                
PAUL  SHADURA,   II,  Spokesperson,  South   K-Beach  Independent                                                               
Fishermen's  Association (SOKI),  stated support  for Alan  Cain,                                                               
Israel  Payton   and  Robert  Ruffner  appointees   to  the  BOF,                                                               
paraphrasing from a prepared statement, which read as follows                                                                   
[original punctuation provided]:                                                                                                
                                                                                                                                
     The South  K-Beach Independent  Fishermen's Association                                                                    
     (SOKI)  is  a  community   group  consisting  of  those                                                                    
     individual  commercial  setnet  fishermen who  seek  to                                                                    
     harvest  salmon  primarily  migrating  to  the  Kasilof                                                                    
     River in Cook Inlet.                                                                                                       
                                                                                                                                
     The  selection  and  confirmation of  Alaska  Board  of                                                                    
     Fisheries  (BOF) members  is  of vital  concern to  our                                                                    
     interests.    The  BOF directs  managers  to  conserve;                                                                    
     which  has   been  defined  in   the  courts   as  "the                                                                    
     controlled  utilization of  a resource  to prevent  its                                                                    
     exploitation,  destruction  or  neglect."   Equally  as                                                                    
     important is  the other directive which  is to develop:                                                                    
     "connotes  management   of  a   resource  to   make  it                                                                    
     available  for  use".    Both to  be  considered  in  a                                                                    
     'balance'.                                                                                                                 
                                                                                                                                
     In  AS  16.05.221 Boards  of  fisheries  and game,  the                                                                    
     Governor  and the  Legislature have  direction in  that                                                                    
     each  member shall  be selected  on ...  "the basis  of                                                                    
     interest in  public affairs, good  judgment, knowledge,                                                                    
     and ability  in the field  of action of the  board, and                                                                    
     with  a view  to  providing diversity  of interest  and                                                                    
     points of view in membership."                                                                                             
                                                                                                                                
     In  the  Governor's  press release  on  02.02.2016,  he                                                                    
     states, "the board will ensure  the resource is managed                                                                    
     for  the  maximum  benefit  of  Alaskans."    While  we                                                                    
     support the  concept of managing for  Maximum Sustained                                                                    
     Yield (MSY) we  would add that by  establishing this as                                                                    
     the  'mission'  of  the BOF  that  this  cannot  happen                                                                    
     without the  full support of  the Alaska  Department of                                                                    
     Fish and Game (ADF&G).                                                                                                     
                                                                                                                                
     Commercial  fishing is  a base  line economy  of Alaska                                                                    
     and by  and large  offers an economy  to 71%  of Alaska                                                                    
     that they  normally they  would not  have access  to if                                                                    
     they  lived  within  our  largest  community.    Salmon                                                                    
     fishermen  in  Alaska  are   overwhelming  made  up  of                                                                    
     residents.   The benefits of  the salmon  industry does                                                                    
     not stop with the 730  thousand residents of our State.                                                                    
     We supply a healthy  sustainable protein source for all                                                                    
     those Americans  who are  not so lucky  to live  on our                                                                    
     Alaska land.                                                                                                               
                                                                                                                                
     We are  pleased with  the Governors attempt  to balance                                                                    
     the  talent of  ideas, values,  and expertise.   Having                                                                    
     said  this   we  are  concerned  that   by  losing  the                                                                    
     knowledge  and   history  of   having  a   Bristol  Bay                                                                    
     commercial  fishing  experienced  person on  the  Board                                                                    
     will damage  their collective  abilities to  make vital                                                                    
     decisions based on the 'best available information'.                                                                       
                                                                                                                                
     However, we  do not hold  our support for any  of these                                                                    
     appointees.   Rather  we  support  moving forward  with                                                                    
     possibly new  ways to  re-construct the  board process,                                                                    
     to better  align it with  the complex issues  that were                                                                    
     not  possible to  address 60  yrs. ago  by our  State's                                                                    
     constitutional conveners.  It is  our belief that it is                                                                    
     time that  we take  a serious look  on ways  to improve                                                                    
     the process, to take  the contentiousness away from the                                                                    
     individual board member appointments,  to give them the                                                                    
     "tools"  and  the  assistance   to  make  clear,  open,                                                                    
     transparent and well informed decisions.                                                                                   
                                                                                                                                
     With that,  the collective voice of  SOKI fully support                                                                    
     the  appointment to  the AKBOF  of;  Alan Cain,  Israel                                                                    
     Payton and Robert Ruffner.                                                                                                 
                                                                                                                                
10:26:04 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  MILLETT  asked  if  the interest  is  to  have  a                                                               
Bristol Bay fisherman seated.                                                                                                   
                                                                                                                                
MR. SHADURA clarified that the  opposition is not due to interest                                                               
in having a  regional appointment, as statute does  not make that                                                               
provision;  however,  commercial  fishing  expertise  is  needed.                                                               
Alaska's fisheries are  the number one employer in  the state and                                                               
are being  looked to as  a means  for relief at  this challenging                                                               
fiscal time.   The issues  are complex  and it is  imperative for                                                               
the  BOF  to  have  the   benefit  of  commercial  fishermen  who                                                               
understand every  region, he opined,  to guide the  board through                                                               
this difficult time in Alaska.                                                                                                  
                                                                                                                                
10:27:17 AM                                                                                                                   
                                                                                                                                
BIRCH  YUKNIS,   Member,  Matanuska-Susitna   Fisheries  Advisory                                                               
Committee, stated  support for the  appointment of  Israel Peyton                                                               
to  the  BOF,  stating  that  he has  proven  helpful,  does  his                                                               
homework, and  has an  ear for both  sides of an  issue.   All of                                                               
Alaska will benefit despite differences  that are bound to arise,                                                               
he opined.                                                                                                                      
                                                                                                                                
10:28:08 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES closed public testimony.                                                                                           
                                                                                                                                
10:28:16 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  MILLETT  moved  to advance  the  confirmation  of                                                               
Israel Payton, appointee  to the Alaska Board of  Fisheries, to a                                                               
joint session of  the House and Senate for  consideration.  There                                                               
being no objection, the confirmation was advanced.                                                                              
                                                                                                                                
10:28:41 AM                                                                                                                   
                                                                                                                                
ROBERT  RUFFNER,  Appointee,  Alaska Board  of  Fisheries  (BOF),                                                               
provided a description  of his talents that he will  bring to the                                                               
BOF,  which include  a  degree in  geology  and river  mechanics.                                                               
During the past  20 years, he has applied these  skills and honed                                                               
his  ability to  utilize numerical  modeling and  apply data  and                                                               
statistics  for  planning and  development  purposes.   It  is  a                                                               
valuable skill  set for a BOF  member to possess, he  opined.  In                                                               
terms of interest  in public affairs, service on  other boards is                                                               
also in his background.  He  pledged to adhere to the established                                                               
allocation  criteria and  couple the  governing statute  with the                                                               
administrate code for sustainable  salmon policy, in the decision                                                               
making process.                                                                                                                 
                                                                                                                                
10:31:17 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES opened public testimony.                                                                                           
                                                                                                                                
10:31:49 AM                                                                                                                   
                                                                                                                                
RICHARD  MCGAHAN, stated  support for  the appointment  of Robert                                                               
Ruffner  to the  BOF, and  said  the candidate  possesses a  good                                                               
interest  in  the  river  systems and  escapement  goals.    It's                                                               
important to have  someone on the board who  will protect fishing                                                               
resources, and he predicted that Mr.  Ruffner will have that as a                                                               
priority.                                                                                                                       
                                                                                                                                
10:32:39 AM                                                                                                                   
                                                                                                                                
FRED   STURMAN,  Soldotna,   Alaska,  stated   support  for   the                                                               
appointment  of Robert  Ruffner to  the BOF,  and opined  that he                                                               
will do a good job.                                                                                                             
                                                                                                                                
10:33:01 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES closed public testimony.                                                                                           
                                                                                                                                
10:33:07 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  MILLETT  moved  to advance  the  confirmation  of                                                               
Robert Ruffner, appointee to the  Alaska Board of Fisheries, to a                                                               
joint session of  the House and Senate for  consideration.  There                                                               
being no objection, the confirmation was advanced.                                                                              
                                                                                                                                
        HB 300-FISH/SHELLFISH HATCHERY/ENHANCE. PROJECTS                                                                    
                                                                                                                                
10:33:35 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES announced that the  final order of business would be                                                               
HOUSE BILL  NO. 300, "An  Act relating to management  of enhanced                                                               
stocks of fish; authorizing the  operation of nonprofit shellfish                                                               
hatcheries;  relating   to  application   fees  for   salmon  and                                                               
shellfish  hatchery  permits;  and  providing  for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
10:34:19 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  FOSTER  moved  to adopt  the  proposed  committee                                                               
substitute  (CS)  for  HB   300,  Version  29-GH2653\W,  Bullard,                                                               
3/21/16, as the working document.                                                                                               
                                                                                                                                
CHAIR STUTES objected for discussion.                                                                                           
                                                                                                                                
10:35:30 AM                                                                                                                   
                                                                                                                                
SAM  COTTEN,  Commissioner,  Alaska  Department of  Fish  &  Game                                                               
(ADF&G), introduced HB 300, and  said it allows the department to                                                               
issue permits  for shellfish  enhancement and  for rehabilitation                                                               
projects,  as  well as  for  the  construction and  operation  of                                                               
shellfish  hatcheries by  non-profit  corporations  for the  same                                                               
purpose.   The  goal  to  help improve  the  state's economy  and                                                               
provide a method to increase  the available harvest of shellfish.                                                               
For  further details  addressing the  recommended changes  to the                                                               
original bill, he deferred comment.                                                                                             
                                                                                                                                
10:37:20 AM                                                                                                                   
                                                                                                                                
FOREST   BOWERS,   Deputy   Director,  Division   of   Commercial                                                               
Fisheries, Alaska Department of Fish  & Game (ADF&G), said HB 300                                                               
caused a  number of questions  due to  a need to  standardize the                                                               
text  of the  bill and  reflect a  unified syntax.   The  general                                                               
public experienced confusion due  to the inclusion of terminology                                                               
which the  department considered  routine.   Additionally, strong                                                               
public interest  was evident regarding shellfish  enhancement and                                                               
the rehabilitation  of shellfish fisheries.   After incorporating                                                               
the public feedback,  the bill required a title change.   Also, a                                                               
paragraph was added to prohibit  permit holders from procuring or                                                               
placing  genetically   modified  shellfish  into   state  waters.                                                               
Specifications  for  brood  stock  sourcing was  included  and  a                                                               
series  of  definitions were  added.    Finally, an  immunity  of                                                               
liability clause  was inserted, and  a provision for  donation of                                                               
shellfish to a food bank was removed.                                                                                           
                                                                                                                                
10:40:13 AM                                                                                                                   
                                                                                                                                
CHAIR  STUTES   removed  her   objection,  and   without  further                                                               
objection, Version W was before the committee.                                                                                  
                                                                                                                                
10:40:19 AM                                                                                                                   
                                                                                                                                
MR. BOWERS referred  to the committee packet,  to paraphrase from                                                               
the  document titled,  "Sectional  Analysis, HB  300, Version  W,                                                               
Shellfish Stock Rehabilitation  and Fishery Enhancement Projects,                                                               
March 23, 2016," which read as follows:                                                                                         
                                                                                                                                
     Sec. 1                                                                                                                   
     Provides  the Alaska  Board of  Fisheries authority  to                                                                    
     direct the department to  manage production of enhanced                                                                    
     shellfish stocks,  beyond brood  stock needs,  for cost                                                                    
     recovery harvest.                                                                                                          
                                                                                                                                
     Sec. 2                                                                                                                   
     Increases the  permit application  fee for  new private                                                                    
     nonprofit salmon hatcheries from $100 to $1,000.                                                                           
                                                                                                                                
     Sec. 3                                                                                                                   
     Adds a  new Chapter  12 to  Title 16,  "Shellfish Stock                                                                    
     Rehabilitation   Efforts,  Enhancement   Projects,  and                                                                    
     Hatcheries.                                                                                                                
                                                                                                                                
     Provides direction  to the commissioner on  issuance of                                                                    
     permits   for   private   nonprofit   shellfish   stock                                                                    
     rehabilitation  and  fishery enhancement  projects  and                                                                    
     associated  shellfish  hatcheries   and  establishes  a                                                                    
     $1,000  permit application  fee.  This section  directs                                                                    
     the commissioner  to consult with technical  experts in                                                                    
     the  relevant   areas  before  permit   issuance.  This                                                                    
     section provides for  a hearing prior to  issuance of a                                                                    
     permit  and describes  certain  permit terms  including                                                                    
     cost recovery fisheries, harvest,  sale, and release of                                                                    
     hatchery-produced  shellfish,  and selection  of  brood                                                                    
     stock   sources.  This   section  describes   reporting                                                                    
     requirements and  terms for modification  or revocation                                                                    
     of a permit.                                                                                                               
                                                                                                                                
     Sec. 4                                                                                                                   
     Provides  the  Commercial  Fisheries  Entry  Commission                                                                    
     authority to  issue special harvest area  entry permits                                                                    
     to    holders    of   private    nonprofit    shellfish                                                                    
     rehabilitation, enhancement or hatchery permits.                                                                           
                                                                                                                                
     Sec. 5                                                                                                                   
     Defines  legal fishing  gear for  special harvest  area                                                                    
     entry permit holders.                                                                                                      
                                                                                                                                
     Sec. 6                                                                                                                   
     Exempts  shellfish   raised  in  a   private  nonprofit                                                                    
     shellfish project from the farmed fish definition.                                                                         
                                                                                                                                
     Sec. 7 and 8                                                                                                             
     Establish  tax exemption  for  a nonprofit  corporation                                                                    
     holding  a   shellfish  hatchery,   rehabilitation,  or                                                                    
     enhancement permit.                                                                                                        
                                                                                                                                
     Sec. 9                                                                                                                   
     Exempts  shellfish harvested  under  a special  harvest                                                                    
     area entry permit from certain taxes.                                                                                      
                                                                                                                                
     Sec. 10                                                                                                                  
     Establishes  an effective  date of  the fee  for salmon                                                                    
     hatchery permits described in sec. 2.                                                                                      
                                                                                                                                
     Sectional Analysis, HB 300 - 2 - April 4, 2016                                                                             
                                                                                                                                
     Sec. 11                                                                                                                  
     Authorizes   the  department   to  adopt   implementing                                                                    
     regulations.                                                                                                               
                                                                                                                                
     Sec. 12                                                                                                                  
     Establishes  an immediate  effective date  for sec.  12                                                                    
     pursuant to AS 01.10.070(c).                                                                                               
                                                                                                                                
     Sec. 13                                                                                                                  
     Establishes an  effective date  for sec.  9 concomitant                                                                    
     with sec. 2 effective date.                                                                                                
                                                                                                                                
10:43:41 AM                                                                                                                   
                                                                                                                                
MR. BOWERS added that the  bill was structured after the existing                                                               
statutes  governing  salmon,  private,  non-profit,  programs  to                                                               
utilize applicable elements.                                                                                                    
                                                                                                                                
10:44:10 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES opened public testimony.                                                                                           
                                                                                                                                
10:44:33 AM                                                                                                                   
                                                                                                                                
HEATHER  MCCARTY, Spokesperson,  Central  Bering Sea  Fishermen's                                                               
Association,  stated  support  for  HB 300,  and  said  the  crab                                                               
fishery  has not  undergone a  stock resurgence,  and enhancement                                                               
appears to  be the best  means to bring  the industry back.   The                                                               
technology exists, and many committee  and public members support                                                               
an enhancement approach.                                                                                                        
                                                                                                                                
10:49:17 AM                                                                                                                   
                                                                                                                                
JULIE  DECKER, Executive  Director, Alaska  Fisheries Development                                                               
Foundation,  stated  support  for  HB 300,  paraphrasing  from  a                                                               
prepared statement,  which read as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     The  Alaska  Fisheries  Development  Foundation  (AFDF)                                                                    
     would  like  to  express  support   for  HB  300.  AFDF                                                                    
     recognizes that  HB 300 is  part of a larger  effort to                                                                    
     develop mariculture in Alaska.                                                                                             
                                                                                                                                
     AFDF's membership  is comprised of  seafood harvesters,                                                                    
     seafood  processors,  and  support  sector  businesses.                                                                    
     Since  1978,  AFDF's  mission   has  been  to  identify                                                                    
     problems  and  opportunities  that  are  common  across                                                                    
     Alaska's   seafood  industry   and   to  help   develop                                                                    
     solutions  utilizing applied  research and  development                                                                    
     which  balance  economic benefits  with  sustainability                                                                    
     principles.                                                                                                                
                                                                                                                                
     One  of  AFDF's recent  projects  is  to spearhead  the                                                                    
     Alaska  Mariculture  Initiative,   which  is  meant  to                                                                    
     expedite the development of  mariculture in Alaska with                                                                    
     the vision to grow a $1 billion industry in 30 years.                                                                      
                                                                                                                                
     Governor  Walker's  recent  Administrative  Order  #280                                                                    
     establishes the  Alaska Mariculture  Task Force  and is                                                                    
     also   part   of   this  larger   effort   to   develop                                                                    
     mariculture.  The  purpose  of  the Task  Force  is  to                                                                    
     provide  recommendations for  a  comprehensive plan  to                                                                    
     develop a  viable and sustainable  mariculture industry                                                                    
     producing   shellfish  and   aquatic  plants   for  the                                                                    
     long                                                                                                                       
     and communities.                                                                                                           
                                                                                                                                
     HB 300  plays an important  role in the  development of                                                                    
     mariculture  in Alaska.  HB  300  creates a  regulatory                                                                    
     framework  with   which  ADF&G  can   manage  shellfish                                                                    
     fishery enhancement,  restoration and hatcheries,  in a                                                                    
     similar  fashion as  the current  management of  salmon                                                                    
     fishery  enhancement and  hatcheries. This  would allow                                                                    
     interested  stakeholders to  either  continue or  begin                                                                    
     enhancement and/or restoration of  species such as King                                                                    
     crab, sea cucumber, geoduck, abalone, or razor clams.                                                                      
                                                                                                                                
     I would  like to  briefly address concerns  of negative                                                                    
     impacts to  wild shellfish from hatchery  shellfish. As                                                                    
     a   Client  for   the   Alaska  Responsible   Fisheries                                                                    
     Management (RFM)  sustainability certification program,                                                                    
     AFDF  has  a  unique  position and  viewpoint  on  this                                                                    
     issue. On  one hand, AFDF hears  concerns from industry                                                                    
     that  ADF&G's  fishery  enhancement  policies  are  too                                                                    
     restrictive, increase  cost, and slow progress.  On the                                                                    
     other   hand,  AFDF   is  also   in  the   position  of                                                                    
     facilitating  a review  of ADF&G's  fishery enhancement                                                                    
     policies   by  independent   third                                                                                         
     determine whether they  follow internationally accepted                                                                    
     standards  for  sustainably managed  fisheries.  Alaska                                                                    
     salmon maintains RFM  certification, because of ADF&G's                                                                    
     policies  which  are  designed around  a  precautionary                                                                    
     approach  that  prioritizes  wild  fish  and  minimizes                                                                    
     adverse impacts to wild stocks.  Following is a list of                                                                    
     some  of  ADF&G's   enhancement  policies:    genetics,                                                                    
     disease,   pathology,   siting  of   hatcheries,   fish                                                                    
     culturing  techniques,   release  strategies,  harvest,                                                                    
     habitat,   marking,   transportation,   planning,   and                                                                    
     reporting.  Given these  extensive  policies, AFDF  and                                                                    
     independent  third                                                                                                         
     is fulfilling its constitutional  mandate to manage our                                                                    
     fishery resources for sustainability.                                                                                      
                                                                                                                                
     Finally, I understand that  a committee substitute (CS)                                                                    
     will be  introduced at Thursday's meeting  that mirrors                                                                    
     the  latest  version of  the  companion  bill (SB  172)                                                                    
     which  was passed  out of  Senate Resources  Committee.                                                                    
     This  is  our  preferred   version  with  changes  that                                                                    
     improve  the  clarity  and intent  of  the  bill.  AFDF                                                                    
     supports  this  CS  of  HB   300  and  appreciates  the                                                                    
     Administration's  proactive  role  in  introducing  the                                                                    
     legislation.                                                                                                               
                                                                                                                                
10:53:13 AM                                                                                                                   
                                                                                                                                
NANCY  HILLSTRAND, Pioneer  Alaskan Fisheries,  stated opposition                                                               
to  HB 300,  and said  the governance  of shellfish  needs to  be                                                               
independent  of  the  statutes  that  were  written  for  salmon.                                                               
Legislation  needs  to  address   shellfish  specifically.    She                                                               
pointed out  that a species  of king  crab was released  into the                                                               
Bering Sea and is now considered invasive.                                                                                      
                                                                                                                                
10:57:07 AM                                                                                                                   
                                                                                                                                
GINNY  ECKERT, PhD,  Professor,  University  of Alaska  Fairbanks                                                               
(UAF),  stated  support  for  HB  300,  and  paraphrased  from  a                                                               
prepared statement,  which read as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     The  Steering   Committee  of  the  Alaska   King  Crab                                                                    
     Research, Rehabilitation and  Biology (AKCRRAB) program                                                                    
     would  like to  express  appreciation  and support  for                                                                    
     House Bill 300, version W.                                                                                                 
                                                                                                                                
     The  AKCRRAB  program  is a  coalition  of  university,                                                                    
     federal  and stakeholder  groups, formed  in 2006  with                                                                    
     the goals of adding  to the scientific understanding of                                                                    
     crab life history and ecology,  as well as the eventual                                                                    
     rehabilitation  of   depressed  king  crab   stocks  in                                                                    
     Alaska.  AKCRRAB  is  developing  scientifically  sound                                                                    
     strategies for hatching, rearing  and out planting king                                                                    
     crab in  Alaska, in order  to help  restore populations                                                                    
     to self-sustainable levels.                                                                                                
                                                                                                                                
     In phase  one, from  2006 to 2011,  AKCRRAB researchers                                                                    
     made  significant  accomplishments  in  developing  and                                                                    
     improving  methods of  hatchery rearing  of larval  and                                                                    
     juvenile  king crab  from wild-caught  brood stock,  to                                                                    
     the  point where  large-scale  production is  feasible.                                                                    
     Parallel field  and laboratory studies of  crab ecology                                                                    
     and  population  genetics  were also  conducted  during                                                                    
     this time.                                                                                                                 
                                                                                                                                
     In the second and  current phase, hatchery studies have                                                                    
     been    complemented    by   studies    essential    to                                                                    
     understanding  optimal release  strategies, appropriate                                                                    
     habitat, and  potential impact on  existing ecosystems.                                                                    
     This research  is providing  the science  necessary for                                                                    
     informing  the responsible  release of  hatchery-reared                                                                    
     animals. Increased knowledge  will allow scientists and                                                                    
     managers  to  assess  the feasibility  of  ecologically                                                                    
     sound   rehabilitation   of  depressed   stocks,   with                                                                    
     potentially substantial benefits to Alaska.                                                                                
                                                                                                                                
     In  the  third  and  final phase,  AKCRRAB  intends  to                                                                    
     evolve from  the current,  research-oriented coalition,                                                                    
     to a  formal entity  focused on  transitioning hatchery                                                                    
     techniques   and    out   planting    technologies   to                                                                    
     communities and  industry as part of  statewide efforts                                                                    
     to  help rehabilitate  depleted  king  crab stocks.  As                                                                    
     phase three develops, the  program will require support                                                                    
     and  guidance   from  the  State  of   Alaska,  as  the                                                                    
     transition  from  feasibility  to  implementation  will                                                                    
     need to be guided with a new regulatory structure.                                                                         
                                                                                                                                
     House  Bill  300, as  aligned  with  the recent  Senate                                                                    
     Resources Committee Substitute for  Senate Bill 172, is                                                                    
     a  response  to  the  need   for  new  regulations  for                                                                    
     shellfish  culture. The  AKCRRAB Steering  Committee is                                                                    
     pleased  that the  Administration  and the  Legislature                                                                    
     are addressing  this need. In  a preliminary  review of                                                                    
     the  proposed  legislation,  the  original  version  of                                                                    
     Senate  Bill  172,  we   identified  several  areas  of                                                                    
     concern  for  AKCRRAB  program  participants.  We  were                                                                    
     pleased that  our concerns, and  those of  others, were                                                                    
     addressed in the Committee Substitute.                                                                                     
                                                                                                                                
     We intend  to participate fully in  further discussions                                                                    
     and  hearings   on  this  important   legislation.  The                                                                    
     AKCRRAB  Steering Committee  stands  ready to  interact                                                                    
     with Committee members and staff  as needed. Please let                                                                    
     us know how we can be of help.                                                                                             
                                                                                                                                
10:59:49 AM                                                                                                                   
                                                                                                                                
CHRIS   MIERZEJEK,   Director    of   Administration,   Community                                                               
Development Quota  (CDQ), stated  support for  HB 300  and opined                                                               
that  it could  generate  economic  opportunities throughout  the                                                               
western coastal areas of Alaska.                                                                                                
                                                                                                                                
CHAIR STUTES closed public testimony.                                                                                           
                                                                                                                                
11:01:34 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  ORTIZ  asked  about   sea  otter  management  and                                                               
whether reducing populations would have a positive impact.                                                                      
                                                                                                                                
11:02:51 AM                                                                                                                   
                                                                                                                                
MR.  BOWERS responded  that sea  otters are  limiting shell  fish                                                               
production  in some  areas  of  the state.    However, the  areas                                                               
impacted by the  sea otter may be  good rehabilitation locations,                                                               
especially if  the otters have  moved to other areas.   Certainly                                                               
abalone would be a good species for rehabilitation, he opined.                                                                  
                                                                                                                                
REPRESENTATIVE ORTIZ said when  speaking about restoration versus                                                               
rehabilitation, what are the differences.                                                                                       
                                                                                                                                
MR.  BOWERS  explained  scenarios  for both  approaches:    Stock                                                               
rehabilitation and fisheries enhancement  are what the department                                                               
practices,  and   restoration  is   not  the   agencies  purview.                                                               
Rehabilitation is when a native  species have been extirpated, or                                                               
nearly so,  and the  effort is  to rebuild  a species  to natural                                                               
production levels.   Enhancement  relates to  boosting production                                                               
of fisheries  above natural levels  for additional yield,  in the                                                               
common property  fishery.   The majority of  the projects  in the                                                               
area of salmon are for enhancement purposes, he finished.                                                                       
                                                                                                                                
11:06:00 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  FOSTER moved  to report  the proposed  CS for  HB
300,  Version 29-GH2653\W,  Bullard,  3/21/16,  out of  committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There  being no  objection, CSHB  300(FSH) was  reported                                                               
from the House Special Committee on Fisheries.                                                                                  
                                                                                                                                
CHAIR STUTES  congratulated the appointees and  thanked the day's                                                               
participants.                                                                                                                   
                                                                                                                                
11:06:38 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Fisheries meeting was adjourned at 11:06                                                                   
a.m.                                                                                                                            

Document Name Date/Time Subjects
Fishermen's Fund - Alward.pdf HFSH 3/24/2016 10:00:00 AM
Alward Support NPFA.pdf HFSH 3/24/2016 10:00:00 AM
Alward Support UFA.pdf HFSH 3/24/2016 10:00:00 AM
Board of Fisheries - Payton.pdf HFSH 3/24/2016 10:00:00 AM
Board of Fisheries - Ruffner.pdf HFSH 3/24/2016 10:00:00 AM
Ruffner & Cain Support UFA.pdf HFSH 3/24/2016 10:00:00 AM
Ruffner Support NPFA.pdf HFSH 3/24/2016 10:00:00 AM
HB300 Sponsor Statement.pdf HFSH 3/24/2016 10:00:00 AM
HB 300
HB300 Sectional Analysis.pdf HFSH 3/24/2016 10:00:00 AM
HB 300
HB300 ver W Changes.pdf HFSH 3/24/2016 10:00:00 AM
HB 300
HB300 ver W Work Draft (H FSH).pdf HFSH 3/24/2016 10:00:00 AM
HB 300
HB300 ver A.pdf HFSH 3/24/2016 10:00:00 AM
HB 300
HB300 Fiscal Note DFG.pdf HFSH 3/24/2016 10:00:00 AM
HB 300
HB300 Support PVOA.pdf HFSH 3/24/2016 10:00:00 AM
HB 300
HB300 Support UFA.pdf HFSH 3/24/2016 10:00:00 AM
HB 300
HB300 Sectional Analysis ver W.pdf HFSH 3/24/2016 10:00:00 AM
HB 300
Ruffner Support - KMcGahan.pdf HFSH 3/24/2016 10:00:00 AM
Payton Oppose - KMcGahan.pdf HFSH 3/24/2016 10:00:00 AM
Payton Oppose - RMcGahan.pdf HFSH 3/24/2016 10:00:00 AM
HB300 Support AFDF.pdf HFSH 3/24/2016 10:00:00 AM
HB 300
SOKI Support Ruffner Cain Payton.pdf HFSH 3/24/2016 10:00:00 AM
HB300 Support Eckert McCarty.PDF HFSH 3/24/2016 10:00:00 AM
HB 300