Legislature(2021 - 2022)GRUENBERG 120

04/21/2022 10:00 AM House FISHERIES

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Audio Topic
10:05:30 AM Start
10:06:18 AM Presentation: Commercial Fisheries Entry Commission
11:34:13 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: Commercial Fisheries Entry TELECONFERENCED
Commission by Commissioner Melvin Smith, and
Jon Haghayeghi, Executive Director, Commercial
Fisheries Entry Commission
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                         April 21, 2022                                                                                         
                           10:05 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Geran Tarr, Chair                                                                                                
Representative Jonathan Kreiss-Tomkins                                                                                          
Representative Dan Ortiz                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Louise Stutes, Vice Chair                                                                                        
Representative Sarah Vance                                                                                                      
Representative Kevin McCabe                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION:  COMMERCIAL FISHERIES ENTRY COMMISSION                                                                            
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MELVIN SMITH, Commissioner                                                                                                      
Commercial Fisheries Entry Commission                                                                                           
Alaska Department of Fish and Game                                                                                              
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Co-presented a PowerPoint on behalf of the                                                               
Commercial Fisheries Entry Commission.                                                                                          
                                                                                                                                
JON HAGHAYEGHI, Executive Director                                                                                              
Commercial Fisheries Entry Commission                                                                                           
Alaska Department of Fish and Game                                                                                              
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Co-presented a PowerPoint on behalf of the                                                               
Commercial Fisheries Entry Commission.                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
10:05:30 AM                                                                                                                   
                                                                                                                                
CHAIR GERAN TARR called the  House Special Committee on Fisheries                                                             
meeting to  order at 10:05 a.m.   Representatives Kreiss-Tomkins,                                                               
Ortiz, and Tarr were present at the call to order.                                                                              
                                                                                                                                
^PRESENTATION:  Commercial Fisheries Entry Commission                                                                           
      PRESENTATION:  Commercial Fisheries Entry Commission                                                                  
                                                                                                                                
10:06:18 AM                                                                                                                   
                                                                                                                                
CHAIR TARR announced  that the only order of business  would be a                                                               
presentation  by   the  Commercial  Fisheries   Entry  Commission                                                               
(CFEC).                                                                                                                         
                                                                                                                                
10:06:59 AM                                                                                                                   
                                                                                                                                
MELVIN   SMITH,   Commissioner,    Commercial   Fisheries   Entry                                                               
Commission, stated  that his role  as commissioner is  to protect                                                               
the   interest    of   commercial   fishermen    while   ensuring                                                               
sustainability for  future generations.   The  main topic  of the                                                               
presentation  would be  policy objectives,  2021 accomplishments,                                                               
and a summary of day-to-day operations.                                                                                         
                                                                                                                                
10:09:01 AM                                                                                                                   
                                                                                                                                
JON  HAGHAYEGHI, Executive  Director, Commercial  Fisheries Entry                                                               
Commission,  directed  attention  to a  PowerPoint  presentation,                                                               
titled  "Commercial   Fisheries  Entry  Commission"   [hard  copy                                                               
included in  the committee packet].   He began with  a historical                                                               
overview of Alaska's salmon fisheries  prior to the Limited Entry                                                               
Act, implemented  in 1973, which  established CFEC in 1974.   The                                                               
commission's  mission,  in  the public  interest  without  unjust                                                               
discrimination, is to promote the  conservation and the sustained                                                               
yield management  of Alaska's fishery  resource and  the economic                                                               
health  and   stability  of  commercial  fishing   in  Alaska  by                                                               
regulating  and  controlling  the   entry  of  participants  into                                                               
commercial fisheries.   He  pointed out that  in fiscal  year (FY                                                               
21),  CFEC  generated $7.2  million  in  revenue, of  which  $3.2                                                               
million  went to  the  operating  budget.   He  stated that  2021                                                               
performance  outcomes included  32 adjudicated  decisions, 16,161                                                               
commercial fishing permits issued,  8,290 vessel licenses issued,                                                               
1,794 permit  transfers processed,  the continuation of  the Cook                                                               
Inlet Set Gillnet  Optimum Numbers study, and  the publication of                                                               
3 research  reports.  The quasi-judicial  commission is supported                                                               
by four  sections: licensing,  adjudications, research,  and data                                                               
processing.  He  gave a detailed overview of  each section's core                                                               
functions.                                                                                                                      
                                                                                                                                
10:28:23 AM                                                                                                                   
                                                                                                                                
COMMISSIONER  SMITH concluded  his  portion  of the  presentation                                                               
with an update from the chair commissioner.                                                                                     
                                                                                                                                
10:30:03 AM                                                                                                                   
                                                                                                                                
MR.  HAGHAYEGHI, in  response to  questions  from the  committee,                                                               
synopsized  three  optimum-numbers  studies:   a  1994  study  on                                                               
Southeastern  roe  herring; a  study  on  the Northern  Southeast                                                               
Inside sablefish  longline fishery;  and a  current study  on the                                                               
Cook Inlet fisheries.  In addition,  he pointed out that a report                                                               
is  being  drafted from  survey  data  on fishermen's  costs  and                                                               
operations.   To  better understand  the economic  health of  the                                                               
fisheries, the  report will detail  each fisheries  average cost.                                                               
He discussed  CFEC's proactive  approach to  monitoring fisheries                                                               
and  the   rate  at  which  optimum-numbers   studies  have  been                                                               
conducted.    In  particular,  he  pointed  out  the  Cook  Inlet                                                               
optimum-numbers  survey.   This  survey  on  set netters  in  the                                                               
region consisted of  10 pages requesting financial  data from the                                                               
past  three   years.    He   stated  that  only  11   percent  of                                                               
participants  responded,  however,  a  statistically  significant                                                               
inference  was still  captured.   He expressed  the opinion  that                                                               
further consolidating  CFEC could cause "devastating"  impacts in                                                               
the future.   Regarding the CFEC's role  in monitoring fisheries,                                                               
he  shared  that  the  commission   issues  publications  on  the                                                               
economic  health of  each fishery.    He described  phase two  of                                                               
limited entry  as the monitoring  of fisheries and  ensuring that                                                               
optimum-numbers studies are  conducted.  He stated  that this was                                                               
the impetus for his position.                                                                                                   
                                                                                                                                
11:01:06 AM                                                                                                                   
                                                                                                                                
COMMISSIONER SMITH,  in response  to committee  questions, agreed                                                               
that  optimum-numbers  studies  should continue,  especially  for                                                               
distressed  fisheries.   He stated  that to  request an  optimum-                                                               
numbers  study in  an already  limited fisheries,  [stakeholders]                                                               
would need to call or write  CFEC; however, no requests have been                                                               
received thus far.   He stated that three  petition requests have                                                               
been made  to limit open access  fisheries.  He said  that Alaska                                                               
Statutes  require  the commission  to  confirm  receipt of  those                                                               
petitions, after which, the timeframe is open ended.                                                                            
                                                                                                                                
11:13:34 AM                                                                                                                   
                                                                                                                                
MR.  HAGHAYEGHI,  in  response to  further  committee  questions,                                                               
described the  three standards for conducting  studies: return on                                                               
investment; the number of entry  permits necessary to harvest the                                                               
allowable  commercial take  of fishery  resources; and  forfeited                                                               
costs.   Limiting any  of the three  open access  fisheries being                                                               
petitioned would  require adjudication, resulting in  an increase                                                               
in the number of limited entry  permits and a slight reduction in                                                               
overall permitting  issuance.   He stated  that following  a 2015                                                               
audit,  there  were 13  pending  adjudications,  which have  been                                                               
resolved.    He added  that  none  were  appealed to  the  higher                                                               
courts.                                                                                                                         
                                                                                                                                
11:34:13 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special  Committee on  Fisheries meeting  was adjourned  at 11:34                                                               
a.m.                                                                                                                            

Document Name Date/Time Subjects
House Fisheries Committee - Commercial Fisheries Entry Commission Presentation 4.7.22.pdf HFSH 4/7/2022 10:00:00 AM
HFSH 4/12/2022 10:00:00 AM
HFSH 4/21/2022 10:00:00 AM
CFEC