Legislature(2005 - 2006)CAPITOL 124

05/06/2005 08:00 AM FISHERIES


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08:11:02 AM Start
08:11:26 AM SB113
10:02:26 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
+ SB 113 GULF OF ALASKA GROUNDFISH FISHERY TELECONFERENCED
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                          May 6, 2005                                                                                           
                            8:11 AM                                                                                             
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Gabrielle LeDoux, Co-Chair                                                                                       
Representative Bill Thomas, Co-Chair                                                                                            
Representative Jim Elkins                                                                                                       
Representative Peggy Wilson                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative John Harris                                                                                                      
Representative Mary Kapsner                                                                                                     
Representative Woodie Salmon                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
CS FOR SENATE BILL NO. 113(RES)                                                                                                 
"An Act relating to entry into and management of Gulf of Alaska                                                                 
groundfish fisheries."                                                                                                          
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                              
BILL: SB 113                                                                                                                  
SHORT TITLE: GULF OF ALASKA GROUNDFISH FISHERY                                                                                  
SPONSOR(S): SENATOR(S) STEVENS B BY REQUEST                                                                                     
                                                                                                                                
02/23/05       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/23/05       (S)       RES, FIN                                                                                               
03/09/05       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/09/05       (S)       Heard & Held                                                                                           
03/09/05       (S)       MINUTE(RES)                                                                                            
03/16/05       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/16/05       (S)       Scheduled But Not Heard                                                                                
03/23/05       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/23/05       (S)       -- Meeting Canceled --                                                                                 
04/01/05       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
04/01/05       (S)       -- Meeting Canceled --                                                                                 
04/18/05       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
04/18/05       (S)       Heard & Held                                                                                           
04/18/05       (S)       MINUTE(RES)                                                                                            
04/23/05       (S)       RES AT 10:00 AM BUTROVICH 205                                                                          
04/23/05       (S)       Work Session to take <Public Testimony>                                                                
04/25/05       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
04/25/05       (S)       Moved SB 113 Out of Committee                                                                          
04/25/05       (S)       MINUTE(RES)                                                                                            
04/26/05       (S)       RES RPT CS  5DP 2NR SAME TITLE                                                                         
04/26/05       (S)       LETTER OF INTENT WITH RES REPORT                                                                       
04/26/05       (S)       DP: WAGONER, ELTON, SEEKINS, STEDMAN,                                                                  
                         STEVENS B                                                                                              
04/26/05       (S)       NR: DYSON, GUESS                                                                                       
04/27/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/27/05       (S)       Heard & Held                                                                                           
04/27/05       (S)       MINUTE(FIN)                                                                                            
04/28/05       (S)       FIN RPT CS(RES)  3DP 3NR                                                                               
04/28/05       (S)       RES LETTER OF INTENT WITH FIN REPORT                                                                   
04/28/05       (S)       DP: WILKEN, GREEN, STEDMAN                                                                             
04/28/05       (S)       NR: HOFFMAN, OLSON, DYSON                                                                              
04/28/05       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/28/05       (S)       Moved CSSB 113(RES) Out of Committee                                                                   
04/28/05       (S)       MINUTE(FIN)                                                                                            
05/03/05       (S)       TRANSMITTED TO (H)                                                                                     
05/03/05       (S)       VERSION: CSSB 113(RES)                                                                                 
05/04/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
05/04/05       (H)       FSH, FIN                                                                                               
05/06/05       (H)       FSH AT 8:00 AM CAPITOL 124                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CHERYL SUTTON, Staff                                                                                                            
to Senator Ben Stevens                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented SB 113 on behalf of Senator Ben                                                                  
Stevens, sponsor.                                                                                                               
                                                                                                                                
JULIE KAVANAUGH                                                                                                                 
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
TIM TRIPP                                                                                                                       
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
MIRANDA KAVANAUGH                                                                                                               
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
MITCH KILBORN, General Manager                                                                                                  
Western Alaska Fisheries                                                                                                        
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of SB 113.                                                                            
                                                                                                                                
JEAN FRANQUILIN, Fleet Manager                                                                                                  
International Seafoods                                                                                                          
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of SB 113.                                                                            
                                                                                                                                
ENRIQUE PEREZ                                                                                                                   
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of SB 113.                                                                            
                                                                                                                                
GLENN CARROLL                                                                                                                   
Homer, Alaska                                                                                                                   
POSITION STATEMENT:  Testified in support of SB 113.                                                                            
                                                                                                                                
MATT STOVER                                                                                                                     
Homer, Alaska                                                                                                                   
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
ALAN PARKS                                                                                                                      
Homer, Alaska                                                                                                                   
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
ART NELSON, Chair                                                                                                               
Board of Fisheries                                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 113, and                                                                        
provided comments during discussion of SB 113.                                                                                  
                                                                                                                                
MICHAEL EBELL                                                                                                                   
Gulf of Alaska Coastal Communities Coalition (GOAC3)                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
ALEXUS KWACHKA                                                                                                                  
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
DARIK LARIONOFF                                                                                                                 
Old Harbor, Alaska                                                                                                              
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
DONALD J. LAWHEAD, Jr.                                                                                                          
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
STANLEY MACK                                                                                                                    
Aleutians East Borough, Alaska                                                                                                  
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
WESTON CARROLL                                                                                                                  
Homer, Alaska                                                                                                                   
POSITION STATEMENT:  Testified in support of SB 113.                                                                            
                                                                                                                                
SYLVIA KAVANAUGH                                                                                                                
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Provided comments during discussion of SB                                                                  
113.                                                                                                                            
                                                                                                                                
NEIL RICKMAN                                                                                                                    
Sitka, Alaska                                                                                                                   
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
LOCKE FINLEY                                                                                                                    
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
KIP THOMET                                                                                                                      
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
LEIGH THOMET                                                                                                                    
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
JAY STINSON, President                                                                                                          
Alaska Draggers Association                                                                                                     
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of SB 113.                                                                            
                                                                                                                                
SHAWN DOCHTERMANN                                                                                                               
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
RALEIGH EAGER                                                                                                                   
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
JULIE BONNEY                                                                                                                    
Alaska Groundfish Databank                                                                                                      
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of SB 113.                                                                            
                                                                                                                                
ANDY LUNDQUIST                                                                                                                  
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
DAVE KUBIAK                                                                                                                     
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
MIKE BOURAY                                                                                                                     
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
DON GALLAGHER                                                                                                                   
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to SB 113.                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
                                                                                                                                
CO-CHAIR GABRIELLE  LEDOUX called the House  Special Committee on                                                             
Fisheries  meeting  to  order at  8:11:02  AM.    Representatives                                                             
LeDoux, Thomas,  Elkins, and Wilson  were present at the  call to                                                               
order.                                                                                                                          
                                                                                                                                
SB 113-GULF OF ALASKA GROUNDFISH FISHERY                                                                                      
                                                                                                                                
8:11:26 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced  that the only order  of business would                                                               
be CS  FOR SENATE BILL  NO. 113(RES),  "An Act relating  to entry                                                               
into and management of Gulf of Alaska groundfish fisheries."                                                                    
                                                                                                                                
8:11:45 AM                                                                                                                    
                                                                                                                                
CHERYL  SUTTON,  Staff  to  Senator  Ben  Stevens,  Alaska  State                                                               
Legislature, presented SB  113 on behalf of  Senator Ben Stevens,                                                               
sponsor.    She  said  that  the  bill  would  provide  statutory                                                               
authority for  the Board  of Fisheries  (BOF) and  the Commercial                                                               
Fisheries Entry Commission (CFEC)  to jointly develop a dedicated                                                               
access  privilege   (DAP)  program  for  Gulf   of  Alaska  (GOA)                                                               
groundfish.  She continued:                                                                                                     
                                                                                                                                
     They  will develop  this [program]  by species,  areas,                                                                    
     and gear types  as the fisheries are  presented to them                                                                    
     from the industry side desiring  to have a DAP in their                                                                    
     fishery.   The legislation  provides for a  full public                                                                    
     process  and  grants  appropriate  authorities  to  the                                                                    
     commission    and    board    for    development    and                                                                    
     implementation of  a form  of fisheries  limitation for                                                                    
     state  water Gulf  groundfish  fisheries reflective  of                                                                    
     historic involvement  in these fisheries.   It does not                                                                    
     predetermine  whether  a  fishery  will  become  a  DAP                                                                    
     fishery or how it will be managed.                                                                                         
                                                                                                                                
MS. SUTTON continued:                                                                                                           
                                                                                                                                
     The Alaska  [BOF] has  lead a  joint effort  to explore                                                                    
     how  best  to  respond  to  the  changes  facing  [GOA]                                                                    
     groundfish   fisheries.     A  diverse   fishing  fleet                                                                    
     utilizing  different   gear  types  and   vessel  sizes                                                                    
     harvest multiple  species of migratory  groundfish from                                                                    
     zero to  three miles  off the Alaska  Gulf coast.   The                                                                    
     GOA groundfish fisheries of the  state waters from zero                                                                    
     to   three  miles   are  comprised   of  two   distinct                                                                    
     components:   a  state water  fishery managed  under an                                                                    
     established  guideline harvest  level,  and a  parallel                                                                    
     fishery managed under a federal total allowable catch.                                                                     
                                                                                                                                
     Efficiency  has increased  in many  of these  fisheries                                                                    
     resulting in  shortened seasons, an increased  race for                                                                    
     fish,  decreased quality,  and  lost opportunities  for                                                                    
      value-added products.  The consequences are lower ex-                                                                     
     vessel  values.   In addition,  the federal  government                                                                    
     through  the North  Pacific Fishery  Management Council                                                                    
     (NPFMC)  is  rationalizing  the groundfish  stocks  and                                                                    
     fisheries  under  its  jurisdiction  in  three  to  two                                                                    
     hundred miles.  This is  likely to result in additional                                                                    
     fishing  effort, exacerbation  of existing  problems in                                                                    
     the zero to three [mile] state water fisheries.                                                                            
                                                                                                                                
8:13:44 AM                                                                                                                    
                                                                                                                                
MS. SUTTON continued:                                                                                                           
                                                                                                                                
     Senator [Ben]  Stevens was approached by  the Gulf work                                                                    
     group  comprised of  the  [NPFMC],  [BOF] members,  and                                                                    
     industry,   and  asked   if  he   would  sponsor   this                                                                    
     legislation,  and you  can see  this legislation  is by                                                                    
     request.   And these are  the folks who  requested this                                                                    
     legislation.     And   because  the   [GOA]  groundfish                                                                    
     fisheries  in  state  waters  are  managed  by  harvest                                                                    
     limits,   a  [DAP]   program   may   be  feasible   and                                                                    
     appropriate  for managers  to meet  harvest objectives.                                                                    
     It may better serve  the goals of resource conservation                                                                    
     and  prevention of  economic  distress among  fishermen                                                                    
     and those dependent upon fishermen  for livelihood.  It                                                                    
     will  also  [promote]  the  safety  of  those  involved                                                                    
     prosecuting these fisheries....                                                                                            
                                                                                                                                
8:14:33 AM                                                                                                                    
                                                                                                                                
MS. SUTTON continued:                                                                                                           
                                                                                                                                
     With the  passage of  SB 113,  a length  public process                                                                    
     will  ensue.   The [Alaska  Department of  Fish &  Game                                                                    
     (ADF&G)]  collects and  CFEC  holds  all the  fisheries                                                                    
     harvest  and vessel  participation  information.   This                                                                    
     information will  have to be compiled  and analyzed for                                                                    
     a fishery being considered  as a potential DAP fishery.                                                                    
     Both  the  CFEC and  the  [BOF]  have extensive  public                                                                    
     hearing  processes,  and  the public  will  have  ample                                                                    
     opportunity to  participate in  the development  of any                                                                    
     potential DAP  program for [GOA]  groundfish fisheries.                                                                    
     Senate  Bill 113  protects  the  state's interests,  it                                                                    
     provides an  important new tool for  insuring our state                                                                    
     water   groundfish  fisheries   can  be   developed  to                                                                    
     maximize the state's interest  and protect the resource                                                                    
     and those who depend upon it. ...                                                                                          
                                                                                                                                
     I know that  there's been a lot of  concern in industry                                                                    
     that this bill  will put in place a  [DAP] program, and                                                                    
     that's not  true; this  bill simply  provides statutory                                                                    
     authority  to  the entities  that  are  charged by  the                                                                    
     legislature  with managing  our fisheries  and the  ...                                                                    
     [CFEC]  with  limiting  entry   into  fisheries  if  it                                                                    
     warrants.  And that's all the bill does.                                                                                   
                                                                                                                                
8:16:11 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS asked  if there would be any  problem with adding                                                               
language  to  the bill  requiring  the  BOF  and the  CFEC,  upon                                                               
completion   of  their   [analysis],  to   report  back   to  the                                                               
legislature before implementation.                                                                                              
                                                                                                                                
MS. SUTTON replied that Senator Ben Stevens would not support                                                                   
that.  She said:                                                                                                                
                                                                                                                                
     The legislature  is the policy  body and what  [SB 113]                                                                    
     does  is  it  creates   policy  and  you  have  already                                                                    
     delegated  your  authority  to the  [BOF]  and  to  the                                                                    
     [CFEC].   You've created the statutes;  you've outlined                                                                    
     what  their  responsibilities  are, and  Senator  [Ben]                                                                    
     Stevens believes that they are  the entities who should                                                                    
     be developing  the programs,  with the  industry coming                                                                    
     to   them  rather   than  the   legislature  developing                                                                    
     fisheries management plans or ratifying them.                                                                              
                                                                                                                                
8:17:28 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS asked:                                                                                                          
                                                                                                                                
     How  about  an overview  ...  at  least to  the  [House                                                                    
     Special   Committee  on   Fisheries]  and   the  [House                                                                    
     Resources  Standing  Committee]  before it's  put  into                                                                    
     place?  We want to know  ... how you're going to do it,                                                                    
     what's going  to happen.   [The legislature  will] take                                                                    
     the heat  one way or the  other: if we kill  this thing                                                                    
     or if  we go  forward.   And I think  it would  be good                                                                    
     protocol that we see what happens to this....                                                                              
                                                                                                                                
MS.  SUTTON  replied,  "Senator  [Ben]  Stevens  doesn't  believe                                                               
that's the correct process."                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS reiterated  his request.  He  commented that when                                                               
the limited entry program was put  into place, he found that what                                                               
the [CFEC] was saying "in the  field" did not match what actually                                                               
happened.    He  restated  that  he'd like  an  overview  of  the                                                               
[analysis].                                                                                                                     
                                                                                                                                
8:18:45 AM                                                                                                                    
                                                                                                                                
MS. SUTTON asked if Co-Chair  Thomas was requesting that the CFEC                                                               
and the BOF return to the  committee for ratification, or just to                                                               
give a presentation.                                                                                                            
                                                                                                                                
CO-CHAIR THOMAS replied,  "I just want to know  what they've done                                                               
and  what they're  going  to  do, so  that  people  have a  clear                                                               
understanding...."                                                                                                              
                                                                                                                                
MS. SUTTON commented  that she didn't think the  process would go                                                               
very quickly.  She stated, "I'm  sure that the [BOF] and the CFEC                                                               
would have  no problem presenting  to you any findings  that they                                                               
have developed."                                                                                                                
                                                                                                                                
8:19:45 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX asked how long Ms. Sutton expects the process to                                                                
take.                                                                                                                           
                                                                                                                                
MS. SUTTON deferred to the CFEC and BOF.  She said:                                                                             
                                                                                                                                
     It has  to come  from industry side  to them;  CFEC has                                                                    
     never imposed  a limited entry  program on  any fishery                                                                    
     unless the fishery  has asked for them to  look at that                                                                    
     fishery.  And Senator  [Ben] Stevens felt very strongly                                                                    
     that  he  join CFEC  and  the  [BOF] together  in  this                                                                    
     process,  which we've  done through  the Memorandum  of                                                                    
     Understanding [MOU], so that  they're in joint hearings                                                                    
     on  the issues  that  will  be before  them.   I  would                                                                    
     envision it's going  to be quite a long  process, and a                                                                    
     very detailed public process.                                                                                              
                                                                                                                                
8:20:21 AM                                                                                                                    
                                                                                                                                
CO-LEDOUX  asked if  there  is  any guarantee  in  the bill  that                                                               
hearings will  be held  in the affected  communities.   She noted                                                               
that the  BOF likes  to hold meetings  in local  communities, but                                                               
due to budgetary  constraints lately have not  been holding local                                                               
meetings, and instead have had the meetings in Anchorage.                                                                       
                                                                                                                                
MS. SUTTON responded:                                                                                                           
                                                                                                                                
     This  is not  a [BOF]  meeting,  ... this  is a  public                                                                    
     hearing  process  involving   [BOF]  members  and  CFEC                                                                    
     members.    CFEC  has  a  consistent  track  record  of                                                                    
     holding hearings  in communities where  they're dealing                                                                    
     with  issues affecting  the fishery  of that  area, and                                                                    
     holding  multiple hearings  in that  area.   And that's                                                                    
     clearly the intent of the MOU....                                                                                          
                                                                                                                                
8:21:44 AM                                                                                                                    
                                                                                                                                
CO-CHAIR opened the meeting for public testimony.                                                                               
                                                                                                                                
8:22:53 AM                                                                                                                    
                                                                                                                                
JULIE KAVANAUGH stated:                                                                                                         
                                                                                                                                
     DAP  is a  system  where the  resource is  specifically                                                                    
     identified and  reserved.  Under Article  8, Section 15                                                                    
     [of  the state  constitution], "No  exclusive right  or                                                                    
     privilege  shall  be  created   or  authorized  in  the                                                                    
     natural waters  of the state."   Any system can  have a                                                                    
     potentially well-developed  plan, but  if it has  a bad                                                                    
     foundation,   it   should   not  be   built   upon   or                                                                    
     implemented.   This bill creates claim  to the resource                                                                    
     while it remains in the  waters of the State of Alaska.                                                                    
     This  section  also  speaks  to  limiting  access,  not                                                                    
     allocating  resource.    While   the  DAP  program  may                                                                    
     potentially   be  more   inclusive,   it  does   create                                                                    
     ownership.    We  limit  access  for  conservation  and                                                                    
     economic [reasons].   We do not  under our constitution                                                                    
     identify and  reserve for anyone.   Article  8, Section                                                                    
     15 does not provide for  creating an exclusive right or                                                                    
     claim  to the  resource.   The word  that "specifically                                                                    
     identified   and   reserved"   are  sourced   from   an                                                                    
     explanation of the DAP  program submitted by supporters                                                                  
     of this  bill, and can  be viewed on the  [indisc.] web                                                                    
     link.                                                                                                                      
                                                                                                                                
8:24:10 AM                                                                                                                    
                                                                                                                                
MS. KAVANAUGH continued:                                                                                                        
                                                                                                                                
     Let's  talk  about  opportunities.    A  limited  entry                                                                    
     system, which we  have seen being upheld  in the court,                                                                    
     is  a restrictive  access, but  it  does not  guarantee                                                                    
     opportunity.   When  we guarantee  the right  to retain                                                                    
     the   resource,   we   exclude  like   fishermen   from                                                                    
     opportunity.   Limited entry does  not reserve  fish if                                                                    
     your gear fails or if  your skill lacks.  Limited entry                                                                    
     doesn't  reserve  fish.    Dedicated  access  privilege                                                                    
     reserves fish.   It creates  a special  privilege which                                                                    
     provides exclusive opportunity to  the resource.  Let's                                                                    
     consider   that  lost   opportunity   by   one  is   an                                                                    
     opportunity  for   someone  else,   and  this   is  the                                                                    
     placeholder for retaining the resource for common use.                                                                     
                                                                                                                                
     When  we  talk about  restricting  access,  we need  to                                                                    
     speak to viability.  The  DAP system has been discussed                                                                    
     as likely to be more  inclusive than limited entry.  It                                                                    
     should be pointed  out that a fisherman  who's given an                                                                    
     allocation  in  a  smaller   boat  operation  would  be                                                                    
     marginalized disproportionately to  a larger operation.                                                                    
     It would  then be  logical to  conclude that  the small                                                                    
     boat,   or  fixed   gear  fleet,   would  be   unfairly                                                                    
     disadvantaged, and unwanted  consolidation would occur.                                                                    
     Interestingly    enough,    conditions    to    prevent                                                                    
     consolidation ...  may very  well compound  the problem                                                                    
     for  the   small  boat  fleet,  preventing   them  from                                                                    
     reversing  their  marginalization.    Creating  a  more                                                                    
     inclusive   limited   entry   access  through   a   DAP                                                                    
     allocative   program,  in   reality   creates  a   less                                                                    
     economically viable fleet.                                                                                                 
                                                                                                                                
8:25:18 AM                                                                                                                    
                                                                                                                                
MS. KAVANAUGH continued:                                                                                                        
                                                                                                                                
     In  this plan  for  rationalization,  we should  intend                                                                    
     that the  winners are  the independent  coastal fishers                                                                    
     and the communities they support.   Over this last week                                                                    
     there  has  been  much  discussion  about  the  Chignik                                                                    
     [Cooperative (Co-Op)]  and the [BOF] need  to implement                                                                    
     a plan to  fix the dilemma arising  from their actions,                                                                    
     which the  [Alaska] Supreme Court  found to  exceed the                                                                    
     board's authority.  This co-op  was formed by the board                                                                    
     in the  face of much  controversy, similar to  what you                                                                    
     will see  happen today.   And  still they  move forward                                                                    
     with the co-op's inception.                                                                                                
                                                                                                                                
     An  interesting detail  came out  of  this last  week's                                                                    
     decision  to  reinstate a  co-op  for  2005: the  [BOF]                                                                    
     recognized    the    need   to    incorporate    active                                                                    
     participation requirements.  I  would ask the board how                                                                    
     they  are going  to require  active participation  from                                                                    
     vessel owners, associations,  co-ops, or other entities                                                                    
     - all  words that are found  in SB 113. ...  Will we be                                                                    
     speaking to  this in this  [House Special  Committee on                                                                    
     Fisheries]?   Or are we  required to have faith  in the                                                                    
     board  to  address this  concern,  one  that they  have                                                                    
     neglected   in  the   recent   past.     Owner-on-board                                                                    
     provisions  or  active  participant  provisions:  let's                                                                    
     hear this committee discuss that.                                                                                          
                                                                                                                                
8:27:13 AM                                                                                                                    
                                                                                                                                
TIM TRIPP stated that he is a jig fisherman from Kodiak                                                                         
testifying on behalf of himself and his wife, Peggy O'Leary.                                                                    
They have lived in Kodiak for 12 years.  He said:                                                                               
                                                                                                                                
     I'm  against SB  113.   However,  if the  bill does  go                                                                    
     through  the  House,  it's   very  important  that  jig                                                                    
     fishermen be included in the bill.   We need to be able                                                                    
     to have  a say in  the rationalization process  when it                                                                    
     goes to  the [BOF].   There's a  lot of things  I don't                                                                    
     understand about this  bill.  I've spent a  lot of time                                                                    
     recently looking  at its wording and  talking to people                                                                    
     about what it  means and where it might go.   I haven't                                                                    
     been able  to figure  it all  out.   And that  makes me                                                                    
     wonder  if everyone  on this  committee  knows what  it                                                                    
     really  means.    It  sure  seems  to  have  a  lot  of                                                                    
     potential to harm a lot  of Alaska fishermen as well as                                                                    
     the communities they live in.   It seems only fair that                                                                    
     it  should be  looked at  closer to  make sure  that it                                                                    
     fairly meets  the needs of  everyone involved.   If the                                                                    
     members  of this  committee aren't  comfortable killing                                                                    
     this bill  now, I think it  should at least be  put off                                                                    
     until  next  year,  or send  to  the  [House  Resources                                                                    
     Standing  Committee],  so  that everyone  has  time  to                                                                    
     think about the consequences  that would allow everyone                                                                    
     who would be affected and  all the legislators who need                                                                    
     to  vote on  it enough  time to  get fully  informed at                                                                    
     what  it means,  whether  it's really  needed, what  it                                                                    
     will do, and who it might hurt.                                                                                            
                                                                                                                                
8:28:47 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS asked Mr. Tripp if he had testified at previous                                                                 
meetings regarding this bill.                                                                                                   
                                                                                                                                
MR. TRIPP replied that he had.                                                                                                  
                                                                                                                                
CO-CHAIR THOMAS commented that he just wanted to make sure that                                                                 
Mr. Tripp had "been around it."                                                                                                 
                                                                                                                                
8:29:19 AM                                                                                                                    
                                                                                                                                
MIRANDA KAVANAUGH stated that she is a sixteen year old high                                                                    
school student in Kodiak.  She testified in opposition to SB                                                                    
113.  She said:                                                                                                                 
                                                                                                                                
     I am against the privatization  of a state resource.  I                                                                    
     don't want  to see  any person, entity,  or cooperative                                                                    
     have exclusive  harvest rights to  our fish.   Over the                                                                    
     last 10  years [Individual  Fishing Quotas  (IFQs)] and                                                                    
     impending  rationalization has  changed our  fisheries.                                                                    
     Fishermen  no longer  compete for  the best  sets or  a                                                                    
     good  trip; they  compete  for history.    The idea  of                                                                    
     future ownership  has ravaged  our fleet.   Compromised                                                                    
     safety promoted  the race for fish  and handicapped our                                                                    
     state's management  abilities.  If you  remove the idea                                                                    
     of ownership  and return to  a discussion  developing a                                                                    
     constitutionally  sound  plan,  our fisheries  and  our                                                                    
     fishermen  will  return  to  more  rational  practices.                                                                    
     Just  because  a  group   of  people  have  anticipated                                                                    
     ownership  for  years  does  not  necessitate  that  we                                                                    
     follow through in state waters.                                                                                            
                                                                                                                                
MS. KAVANAUGH continued:                                                                                                        
                                                                                                                                
     I urge  the [House  Special Committee on  Fisheries] to                                                                    
     stop SB 113  and send a strong message  to the governor                                                                    
     and  the [BOF]  that we  do not  want dedicated  access                                                                    
     privilege  for  our  state waters  fishery.    We  want                                                                    
     control of our  resource for the people of  Alaska.  It                                                                    
     is the [BOF] job to  protect our fisheries for the good                                                                    
     of all  its fishermen.   SB 113  was written  to reward                                                                    
     overcapitalization of the trawl  fleet and reward their                                                                    
     bycatch.     This   bill  does   not  address   bycatch                                                                    
     reduction;  it  encourages  bycatch maximization.    By                                                                    
     owning their bycatch,  they will no longer  need to set                                                                    
     lower goals;  they will expect  to harvest  100 percent                                                                    
     of their  untargeted species.   This  ownership concept                                                                    
     is written  specifically for  trawl needs.   It  has no                                                                    
     place in the  state fishery and the  trawl fleet should                                                                    
     be   required  to   stay   outside   three  miles   for                                                                    
     conservation  concerns.     There  would  then   be  an                                                                    
     abundance of  fish for the  small boats and  fixed gear                                                                    
     fleets.   Entry-level fisheries would be  guaranteed to                                                                    
     remain viable  and the race for  fish would immediately                                                                    
     halt.                                                                                                                      
                                                                                                                                
     Please do  not create  larger, more complex  issues for                                                                    
     [GOA]  coastal communities.    Let's  work together  to                                                                    
     provide a  solid state program  that does not  buy into                                                                    
     private   ownership;  that   rewards  hard   work,  not                                                                    
     overcapitalization;  that   recognizes  environmentally                                                                    
     friendly  fisheries,  not  high bycatch;  and  supports                                                                    
     fishermen  instead  of  forming millionaires.  ...  The                                                                    
     stability of State of Alaska  depends on the protection                                                                    
     of  its natural  resources, and  I ask  that you  refer                                                                    
     this bill to the [House Resources Standing Committee].                                                                     
                                                                                                                                
8:32:42 AM                                                                                                                    
                                                                                                                                
MITCH KILBORN, General Manager, Western Alaska Fisheries,                                                                       
testified in support of SB 113.  He said:                                                                                       
                                                                                                                                
     I have been living in Kodiak  for the past 19 years.  I                                                                    
     have seen  the fishing industry change  dramatically in                                                                    
     those  19 years.   When  I first  came here,  it seemed                                                                    
     that we  processed year round.   I  remember processing                                                                    
     pollock  on Christmas  Eve so  we could  have Christmas                                                                    
     Day off.   We had  lots of experienced crew  back then.                                                                    
     Western  Alaska   Fisheries  had  over   300  full-time                                                                    
     employees.   Today we  have around  120.   We are  at a                                                                    
     point where  we have to  bring workers in  from Outside                                                                    
     to  help  process fish  during  the  peak times.    The                                                                    
     people that  suffer the most  are the  workers; they're                                                                    
     the people  who live  here, send  their kids  to school                                                                    
     here,  and  buy  their  groceries here.    We  need  to                                                                    
     protect  these people.   Rationalization  is  a way  to                                                                    
     protect those  workers.   We need  to make  our seasons                                                                    
     last longer,  make products that  are more value  to us                                                                    
     as  well  as  our   fishermen,  make  more  value-added                                                                    
     products.   This will keep  the workforce that  we have                                                                    
     in Kodiak  more stable  and prevent  us from  having to                                                                    
     bring  in transient  workforce that  takes their  money                                                                    
     out of the community and some out of the state.                                                                            
                                                                                                                                
8:34:01 AM                                                                                                                    
                                                                                                                                
JEAN FRANQUILIN,  Fleet Manager, International  Seafoods, stated,                                                               
"I think rationalization  is going to be good for  everyone."  He                                                               
shared  an   anecdote  about  how   halibut  prices   have  risen                                                               
substantially over the  past 20 years.  He  compared the present-                                                               
day  groundfish fishery  with the  old halibut  fishery when,  he                                                               
said, there were too many fish caught too fast.                                                                                 
                                                                                                                                
8:38:13 AM                                                                                                                    
                                                                                                                                
ENRIQUE  PEREZ  stated that  he  has  worked for  Western  Alaska                                                               
Fisheries  in  Kodiak  for  25  years.    He  said  that  he  was                                                               
representing himself and  his 180 co-workers.   He commented that                                                               
he supports SB  113 because it will create more  work for him and                                                               
make him more money.  He  noted that groceries are very expensive                                                               
in Kodiak.   He remarked that the season is  currently very short                                                               
and the company has to bring in  extra workers to help out in the                                                               
plant.    He  asked  the  committee not  to  forget  the  cannery                                                               
workers.                                                                                                                        
                                                                                                                                
8:40:15 AM                                                                                                                    
                                                                                                                                
GLENN CARROLL  stated that  he has  fished for  40 years  in Cook                                                               
Inlet, Kodiak,  Prince William Sound,  and Southeast Alaska.   He                                                               
said:                                                                                                                           
                                                                                                                                
     My interest in this bill is  in cod.  I have fished cod                                                                    
     with pots since  1994, ... and have  done a small-scale                                                                    
     fresh and  direct market product out  of Homer, because                                                                    
     of the road system, for  fresh fillets and fresh cod to                                                                    
     Kodiak.  I  also participate in the  federal fishery as                                                                    
     well.   My  concern is  for the  rapid decline  and the                                                                    
     continually shortening  season.  Each year  the federal                                                                    
     season closes  a week  earlier.   The real  impetus for                                                                    
     this bill  that I  see, however,  and by  the way  I am                                                                    
     speaking  in  favor of  it,  is  in the  state  waters.                                                                    
     Please do not miss the picture  that I am going to give                                                                    
     you in  these facts.   It is this:   In the  year 2000,                                                                    
     the state  waters fishery  for pots  for cod  in Kodiak                                                                    
     was 10 months long.  In  the year 2005, it was 11 days.                                                                    
     In my opinion, unless we  stop the race for fish, there                                                                    
     is little  future in  groundfish.  We  do not  have the                                                                    
     luxury of putting this off for years to come. ...                                                                          
                                                                                                                                
     The  second reason  I  support this  bill  is from  the                                                                    
     standpoint of marketing.  As  long as we are racing for                                                                    
     our fish, we simply will  not compete in markets around                                                                    
     the country and  the world.  The same fish  that we get                                                                    
     30 cents for  in Alaska sells to the boat  for a dollar                                                                    
     in  Boston and  Iceland and  more.   When we  harvest a                                                                    
     great proportion  of our cod  in a matter of  weeks, it                                                                    
     is like  all the ranchers butchering  three quarters of                                                                    
     their cattle  on the fourth  of July and  expecting the                                                                    
     market  to  receive  them.    From  the  standpoint  of                                                                    
     marketing 101, this is  absolutely the most regressive,                                                                    
     backward  system that  we could  have.   And I  believe                                                                    
     this bill will address this....                                                                                            
                                                                                                                                
MR. CARROLL continued:                                                                                                          
                                                                                                                                
     One comment about  the [BOF] process out  of which this                                                                    
     bill  came:  I participated  in  the  ground fish  task                                                                    
     force with  the [BOF], and  contrary to what  some have                                                                    
     said, this  was a  very public  process.   There [were]                                                                    
     representatives  from all  around  the  state. ...  The                                                                    
     general  tone and  attitude  that  [BOF] Chairmen  [Ed]                                                                    
     Dursham and  [Art] Nelson had at  this was continuously                                                                    
     soliciting  good, visionary  ideas, and  even from  the                                                                    
     public  that was  there beyond  the task  force members                                                                    
     that  were  there.   And  there  was  a great  deal  of                                                                    
     discussion that brought up the  necessity of this bill.                                                                    
     I believe  the DAP  program will  begin the  process of                                                                    
     addressing these things.                                                                                                   
                                                                                                                                
8:43:40 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS  commented that he  has been a  halibut fisherman                                                               
for 30  years.   He noted  that he  used to  catch an  average of                                                               
50,000 to 60,000  pounds of halibut [per year], but  he was given                                                               
an IFQ  of 15,000.   He  remarked, "This  is just  a note  to the                                                               
people who  are sitting out there:  if you think you're  going to                                                               
get more when there's more boats  showing up, you're going to get                                                               
less."    He related  that  [before  IFQs], the  halibut  fishery                                                               
openings got shorter and shorter each year.                                                                                     
                                                                                                                                
8:45:12 AM                                                                                                                    
                                                                                                                                
MATT STOVER,  a small boat  owner and  operator from Homer  and a                                                               
long-time deckhand in several  fisheries, testified in opposition                                                               
to SB 113.   He remarked that he thinks SB  113 is headed towards                                                               
IFQs, which  he commented  have become a  commodity to  be bought                                                               
and sold,  often by nonfishermen.   He pointed out that  the boat                                                               
he has  fished on  for years  was recently  sold to  an Anchorage                                                               
lawyer, and  that the lawyer  will receive "all the  benefits for                                                               
[which] my skipper  and myself and the rest of  the crew fished."                                                               
He stated  that the IFQ owner  usually isn't on the  boat to help                                                               
fish.                                                                                                                           
                                                                                                                                
8:47:42 AM                                                                                                                    
                                                                                                                                
ALAN  PARKS of  Homer  testified in  opposition to  SB  113.   He                                                               
stated:                                                                                                                         
                                                                                                                                
     I  have been  involved in  harvesting Alaska  fisheries                                                                    
     resource for over 30 years.   My sole income is derived                                                                    
     from  harvesting and  promoting sustainable  community-                                                                    
     based  fisheries.    I  have been  a  member  of  North                                                                    
     Pacific Fisheries  Association for  the past  20 years.                                                                    
     I am  a stakeholder of  state groundfish resources.   I                                                                    
     oppose SB  113 because it hurts  fishermen, processors,                                                                    
     coastal  communities,  and  drastically  changes  state                                                                    
     policy.   I have  faxed to  you a  petition of  over 25                                                                    
     Homer fishermen  who also oppose  SB 113.  I  have many                                                                    
     concerns about SB 113, but I will limit my comments.                                                                       
                                                                                                                                
     [Senate  Bill] 113  is a  consolidation  bill and  will                                                                    
     result in  less processing  jobs, less  workers' hours,                                                                    
     and  the  closing  of some  processing  plants.    Some                                                                    
     groundfish  resources  will  be frozen  in  blocks  and                                                                    
     shipped to  areas in the  nation and  foreign countries                                                                    
     where labor is cheaper.   Already we are seeing Alaskan                                                                    
     pink salmon  being shipped to Thailand  for processing.                                                                    
     Alaskan sea urchins  are being shipped to  Mexico.  And                                                                    
     Alaska halibut is  being shipped to Canada.   All these                                                                    
     practices are  happening today  and will  only increase                                                                    
     under SB 113  because co-ops will be  formed and linked                                                                    
     to  a specific  processor and  the processor  will make                                                                    
     the  business   decision  to  schedule   deliveries  to                                                                    
     minimize labor  and will plan  to ship  to destinations                                                                    
     where  primary  and  value-added processing  can  occur                                                                    
     with cheaper labor.  In  competitive markets, we expect                                                                    
     the processors  to work to maximize  profit, and that's                                                                    
     why we look  to you the legislature  to protect Alaskan                                                                    
     jobs  in the  working  waterfront.   [Senate Bill]  113                                                                    
     reflects  what's commonly  referred to  as outsourcing,                                                                    
     and it means fewer jobs  for Alaskans [and] reduced tax                                                                    
     revenues  for  local   communities  already  struggling                                                                    
     under  the weight  of recent  cuts to  revenue sharing.                                                                    
     ...                                                                                                                        
                                                                                                                                
MR. PARKS continued:                                                                                                            
                                                                                                                                
     [Senate Bill]  113 proposes  drastic changes  to Alaska                                                                    
     policy.    [Senate  Bill]  113   will  change  the  way                                                                    
     communities interact  with each  other.   [Senate Bill]                                                                    
     113  will  change  the way  communities  interact  with                                                                    
     state government.   The  whole basis of  SB 113  is how                                                                    
     the  state and  federal government  will interact  with                                                                    
     each other.   [Senate Bill]  113 will change  how state                                                                    
     commerce   will  be   conducted  between   communities.                                                                    
     [Senate Bill]  113 will  reduce the  governor's ability                                                                    
     to manage  through his  administration the  policies of                                                                    
     the State of Alaska and  his ability to prevent federal                                                                    
     preemption.                                                                                                                
                                                                                                                                
8:50:23 AM                                                                                                                    
                                                                                                                                
MR. PARKS continued:                                                                                                            
                                                                                                                                
     It is  very important, in  fact it is  imperative, that                                                                    
     the   Alaska   State  Legislature   establishes   clear                                                                    
     policies for  Alaska and how communities  will interact                                                                    
     with  each  other  and  establish  clear  policies  for                                                                    
     interaction  between  state  and  federal  governments.                                                                    
     ...   I  am very  concerned that  SB 113  is not  being                                                                    
     heard by  other committees.   I appreciate the  work by                                                                    
     the  [House Special  Committee on  Fisheries] but  feel                                                                    
     that  the  sweeping policy  changes  that  SB 113  will                                                                    
     enact  and the  impacts  it will  have to  communities,                                                                    
     state commerce,  and state  government, ...  that other                                                                    
     committees should  hear this  bill.   Or you  [can] let                                                                    
     this  SB  113  take  a  rest  for  the  year;  let  the                                                                    
     stakeholders  come to  agreement  on some  of the  more                                                                    
     controversial   elements  and   produce  a   bill  that                                                                    
     reflects Alaska's strong  fishing heritages and protect                                                                    
     Alaska jobs and coastal  communities.  There's just too                                                                    
     much work that needs to be  done to this bill before it                                                                    
     becomes a piece of good legislation.                                                                                       
                                                                                                                                
8:51:39 AM                                                                                                                    
                                                                                                                                
ART NELSON, Chair,  Board of Fisheries, stated that  he served on                                                               
the groundfish  task force  that has been  working on  this issue                                                               
for the last year  and a half, and he testified  in support of SB                                                               
113.  He said:                                                                                                                  
                                                                                                                                
     I  think one  of the  most important  distinctions that                                                                    
     some folks  are confused  about is  [that] I  hear them                                                                    
     drawing  a  lot of  parallels  or  comparing [DAPs]  to                                                                    
     IFQs,  and  that  is  definitely not  the  case.    The                                                                    
     mechanics  of how  the fishery  may take  place may  be                                                                    
     similar  to  IFQ  fisheries,  but  at  the  fundamental                                                                    
     level,  a DAP  is not  an  IFQ.   And there's  numerous                                                                    
     places in the bill where  it talks about whether or not                                                                    
     they expire or  attenuate over time, and  the terms and                                                                    
     conditions in  which they may  be renewed  or reissued,                                                                    
     and   that's  been   a  subject   of  much   discussion                                                                    
     throughout the  stakeholder task force....   And one of                                                                    
     the things  that I  think a  number of  us agree  on is                                                                    
     that  these should  be nonpermanent  access privileges.                                                                    
     Now they'd  have a  term and  then perhaps  be renewed,                                                                    
     but  there's numerous  conditions that  we may  look at                                                                    
     that  would  spell  out whether  the  full  quota  gets                                                                    
     renewed  or a  portion of  it.   And that's  all things                                                                    
     that  are  yet  to  be  developed,  but  what  we  have                                                                    
     discussed quite a bit in our meetings.                                                                                     
                                                                                                                                
8:53:40 AM                                                                                                                    
                                                                                                                                
MR. NELSON continued:                                                                                                           
                                                                                                                                
     And I  know one  of the previous  testifiers referenced                                                                    
     one of the  documents that some of  the stakeholders on                                                                    
     our  panel have  brought forward,  that lays  out their                                                                    
     suggestion for it,  and I think they  brought some very                                                                    
     valid  points  forward.   But  we  have no  predisposed                                                                    
     program  at this  time.   It's  going to  be a  lengthy                                                                    
     process and I  know there was a  question earlier about                                                                    
     how long  this may  take, and I'd  wager to  guess that                                                                    
     we're looking probably at a  year to two years probably                                                                    
     to have the first fisheries  ready to be implemented if                                                                    
     we proceed with this.  And  as the MOU spells out ... a                                                                    
     number of meetings that we  fully intend to hold out in                                                                    
     affected  communities, numerous  more  meetings of  our                                                                    
     stakeholder  task  force  to   flesh  this  out,  joint                                                                    
     meetings of  the board  and the  CFEC to  gather public                                                                    
     input, and  so it's  been a very  open process  to this                                                                    
     point, and  if the legislature  passes SB 113  ... it's                                                                    
     going  to continue  for some  time and  be a  very open                                                                    
     process.                                                                                                                   
                                                                                                                                
8:55:05 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX pointed out that in the MOU, there is no                                                                        
requirement that meetings and public testimony be held in                                                                       
affected communities.                                                                                                           
                                                                                                                                
MR. NELSON replied:                                                                                                             
                                                                                                                                
     You're  correct.   I don't  believe the  MOU explicitly                                                                    
     states that meetings  are going to be  held in affected                                                                    
     communities.   That  was certainly  our intention,  and                                                                    
     I'd be happy to  speak with [CFEC] commissioner [Bruce]                                                                    
     Twomley who worked  with us in developing  this and see                                                                    
     if there's  agreement to put  that in there.   However,                                                                    
     the fiscal  notes attached to this  bill outlaying some                                                                    
     additional  funds for  the board  and the  CFEC specify                                                                    
     that ... a reason for these  fiscal notes is so that we                                                                    
     can go hold these meetings in affected communities.                                                                        
                                                                                                                                
8:56:16 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX asked if there would be any objection from the                                                                  
BOF if it was explicitly stated in the bill to require that                                                                     
meetings and public testimony be held in affected communities.                                                                  
                                                                                                                                
MR. NELSON responded that it was the board's intent all along to                                                                
hold such meetings.  He said:                                                                                                   
                                                                                                                                
     I guess  it would depend on  how specific you get.   If                                                                    
     you wanted  to just perhaps  put in there that  we will                                                                    
     hold  meetings in  affected  communities, I  personally                                                                    
     don't see  a problem with  that because we  intended it                                                                    
     all  along.   But  I guess  if you  get  into too  much                                                                    
     specifics and exactly how many  meetings, then that may                                                                    
     be more troublesome.                                                                                                       
                                                                                                                                
8:57:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON asked  for further  confirmation that  the                                                               
process would  take about two  years to finish  [establishing the                                                               
DAPs].                                                                                                                          
                                                                                                                                
MR. NELSON  answered that that  was just  a guess.   He commented                                                               
that the  MOU requires  that the  BOF prioritize  which fisheries                                                               
"may need  to get looked at  first."  However, he  said, "this is                                                               
something  that we're  not going  to charge  forward with  on our                                                               
own, and we're going to be  looking for users and stakeholders to                                                               
bring these  requests to us before  we jump in to  looking at any                                                               
particular  fishery."   He noted  that  the MOU  has stated  that                                                               
there will be  many meetings of stakeholder  panels and community                                                               
meetings.   He estimated that the  process would take at  least a                                                               
year and perhaps two years.                                                                                                     
                                                                                                                                
8:58:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ELKINS  asked   what   would   happen  if   [the                                                               
legislature]  slowed down  the process  to  wait for  the BOF  to                                                               
complete its findings before passing the bill.                                                                                  
                                                                                                                                
MR. NELSON replied:                                                                                                             
                                                                                                                                
     I  just  personally have  a  little  concern about  ...                                                                    
     something   coming   back   to  the   legislature   for                                                                    
     ratification,  and I  have a  couple reasons  for that.                                                                    
     One is that,  you know, we're a  volunteer board, don't                                                                    
     get  paid very  much,  and it's  already  a very  large                                                                    
     commitment of  time.  And  this is  going to be  a much                                                                    
     larger commitment  of time for  a number of us  and the                                                                    
     public,  and  to  have  something  come  back  and  ...                                                                    
     potentially  not get  legislative  passage for  reasons                                                                    
     totally  aside  from  the  merits   of  the  bill,  ...                                                                    
     depending on what the hot issue  of the day or the week                                                                    
     is  at  the  legislature,  you  know,  things  can  get                                                                    
     sidelined.                                                                                                                 
                                                                                                                                
     Another  aspect is  that the  timeliness of  needing to                                                                    
     move forward is  that if the [NPFMC]  goes forward with                                                                    
     their rationalization  and we  aren't able to  react on                                                                    
     the state side, then I  believe we're going to see some                                                                    
     very  strong impacts,  negative impacts,  to ...  state                                                                    
     water fishermen.                                                                                                           
                                                                                                                                
REPRESENTATIVE ELKINS remarked, "If this goes south on us                                                                       
anyway, the legislature ends up being the ones that caused the                                                                  
problem."                                                                                                                       
                                                                                                                                
9:00:14 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX asked Mr. Nelson:                                                                                               
                                                                                                                                
     How will you determine if  enough of the fishermen want                                                                    
     a DAP program in their  fisheries?  In other words, are                                                                    
     you going to look at  how many people have licenses for                                                                    
     fishing  a  particular  fishery   and  then  a  certain                                                                    
     percentage of  those people would  have to come  to you                                                                    
     with a request to set up such a program?                                                                                   
                                                                                                                                
MR. NELSON answered:                                                                                                            
                                                                                                                                
     It's very  similar to  the way  we judge  a lot  of our                                                                    
     other decisions,  through our regular  proposal process                                                                    
     that we go  through.  Any single  individual can submit                                                                    
     a proposal  to the Board  of Fisheries.  But  we always                                                                    
     weight the  relative support  and/or opposition  for it                                                                    
     just  rather subjectively,  and  many  times when  it's                                                                    
     something somewhat  controversial and  stakeholders ask                                                                    
     me for  advice on  how to  bring something  towards the                                                                    
     board, I recommend  that they get a  list of signatures                                                                    
     so that  we can get  ... a relative measure  of support                                                                    
     and/or opposition  for something.   But I guess  I'd be                                                                    
     leery of spelling out a certain threshold level.                                                                           
                                                                                                                                
9:01:42 AM                                                                                                                    
                                                                                                                                
MICHAEL  EBELL,  Gulf  of Alaska  Coastal  Communities  Coalition                                                               
(GOAC3),  pointed  out that  the  GOAC3  passed a  resolution  in                                                               
opposition to  SB 113, and  a copy of  that resolution is  in the                                                               
committee packets.  He said:                                                                                                    
                                                                                                                                
     This  bill puts  the cart  before the  horse.   And any                                                                    
     time that  you are seeking  to change a  fishery system                                                                    
     in the  State of Alaska, we  all know it's going  to be                                                                    
     controversial,   but   it's  a   particularly   weighty                                                                    
     decision  when the  discussion  involves the  potential                                                                    
     distribution  and privatization  of a  public resource.                                                                    
     And  these  decisions have  to  be  made with  adequate                                                                    
     information   about   the   impacts  on   our   coastal                                                                    
     communities.   And the information  has to be  there at                                                                    
     the very  beginning of  the process;  it can't  come in                                                                    
     the  middle and  it can't  be gathered  to come  at the                                                                    
     end.  And  we haven't seen the  economic impact studies                                                                    
     necessary for  this decision  at this  time.   The data                                                                    
     and the  discussions need to  be available  to Alaska's                                                                    
     elected officials before this  authority is handed over                                                                    
     to make these important decisions.                                                                                         
                                                                                                                                
MR. EBELL continued:                                                                                                            
                                                                                                                                
     And I  do want to make  it clear that the  GOAC3 is not                                                                    
     inherently opposed to  DAPs, to a system  like them, or                                                                    
     to any  of the  stated goals  in the  sponsor statement                                                                    
     from [Senator Gary  Stevens, Alaska State Legislature].                                                                    
     I think  that the resolution  makes it clear  that this                                                                    
     is  in fact  in  opposition to  this  decision at  this                                                                    
     time; that it  is in fact detrimental to  open the door                                                                    
     for  such a  program  that tries  to  meet these  goals                                                                    
     without knowing the details of  the program, and trying                                                                    
     to  open  that door  in  a  hasty  manner.   Once  this                                                                    
     discussion leaves  the legislature, not  all interested                                                                    
     parties in  the fishing industry  are going to  have an                                                                    
     equal seat  at the  table; that's  just the  way things                                                                    
     are.   And there is  no reason  not to wait  until next                                                                    
     year in order  to insure that we move  forward with all                                                                    
     the  information that  we  need and  that  you need  in                                                                    
     order to make sure that  this system works for Alaska's                                                                    
     fisheries  well  into  the   future  and  for  Alaska's                                                                    
     communities.                                                                                                               
                                                                                                                                
9:04:34 AM                                                                                                                    
                                                                                                                                
ALEXUS KWACHKA testified in opposition to SB 113.  He stated:                                                                   
                                                                                                                                
     I own  my own boat.   I  hold limited entry  permits in                                                                    
     salmon, herring,  and crab.   I've been fishing  out of                                                                    
     Kodiak for 18  years.  I grew up in  Fairbanks.  I also                                                                    
     run the  [F/V] Major  for Walter  Sargent, whom  I have                                                                    
     fished  with and  for for  15 years.   I  pot fish  and                                                                    
     longline for  [Pacific cod], halibut, and  sablefish on                                                                    
     the [F/V] Major.  I'm a working fisherman.                                                                                 
                                                                                                                                
     I'm  not a  lobbyist.   I'm not  a politician.  ... And                                                                    
     I'll make it  really clear: I'm not  supporting SB 113.                                                                    
     This bill will  not be good for  coastal Alaska working                                                                    
     fishermen.   Proponents  of the  bill  claim this  will                                                                    
     create more jobs  and more stability.   My question is:                                                                    
     how  will giving  ownership rights  and the  ability to                                                                    
     create  co-ops  create  more  jobs?    Ownership  of  a                                                                    
     resource  will enable  consolidation, which  means less                                                                    
     jobs  for  the  fishing   sector.    Co-ops  mean  less                                                                    
     competition,  and also  leads to  consolidation of  the                                                                    
     processor  sector.    This  means  less  jobs  for  the                                                                    
     processing workers.                                                                                                        
                                                                                                                                
     [Regarding] the consolidation in  Dutch Harbor, where I                                                                    
     am  right  now:   Royal  Aleutian  [Seafoods] was  just                                                                    
     bought by Unisea - that  was an entirely American-owned                                                                    
     company;  it's  gone. ...  The  workers  there will  be                                                                    
     consolidated  ... there  will be  no more  overtime for                                                                    
     cannery workers.                                                                                                           
                                                                                                                                
9:06:33 AM                                                                                                                    
                                                                                                                                
MR. KWACHKA continued:                                                                                                          
                                                                                                                                
     I'd like  to move on to  limited entry since I'm  a big                                                                    
     participant in it.   Every trade magazine  I read [says                                                                    
     that the value of] every  salmon permit in the state is                                                                    
     on  the rise.  ...  I  saw 17  Bristol  Bay boats  sold                                                                    
     recently.  I'm also a  Bristol Bay fisherman, and I can                                                                    
     tell  you, I  bought  in  at the  bottom  end and  it's                                                                    
     penciling out good.  I  can't work that fishery for six                                                                    
     weeks and make a living on  it for a whole year, but it                                                                    
     sure helps my income, and I  have a good time doing it.                                                                    
     I  provide  two  jobs  [to crew  members]  and  I  keep                                                                    
     cannery  workers going  there too.   Woodbine  cannery:                                                                    
     boy, they  had some  bad news last  year, but  it seems                                                                    
     that  Icicle Seafoods  just stepped  to  the plate  and                                                                    
     bought them.   I think that's optimism  and it's really                                                                    
     good for our state.                                                                                                        
                                                                                                                                
9:07:25 AM                                                                                                                    
                                                                                                                                
MR. KWACHKA continued:                                                                                                          
                                                                                                                                
     What would have happened if  you guys came in and tried                                                                    
     to ... correct the problems  that were in Bristol Bay a                                                                    
     few  years ago,  with creating  co-ops, as  in Chignik,                                                                    
     and allocated to a handful  of people that were fishing                                                                    
     in the  bay, and when  things were down?   You wouldn't                                                                    
     see the excitement; you wouldn't  see the optimism that                                                                    
     we're  seeing  there  now.    So  my  question  on  the                                                                    
     groundfish is the  same.  You know,  the proponents are                                                                    
     the trawl sector and the  processing sector.  And we're                                                                    
     talking  about  ownership here,  and  I  don't see  how                                                                    
     you're  going to  get it  by the  constitution, and  it                                                                    
     really concerns me.                                                                                                        
                                                                                                                                
9:08:03 AM                                                                                                                    
                                                                                                                                
MR. KWATCHA continued:                                                                                                          
                                                                                                                                
     I  have some  recommendations  if you  do move  forward                                                                    
     [with  this bill]:    100 percent  owner  on board,  no                                                                    
     access right  in the state  fishery of any  kind should                                                                    
     be  given to  anybody who  doesn't  pull on  a pair  of                                                                    
     rubber boots;  legislative review ...; strike  lines in                                                                    
     Section 1,  [lines] 12, 13,  14, and 15; and  Section 2                                                                    
     it's either  lines 3, 4, 5,  and 6, or 33,  34, 35, and                                                                    
     36  - I  can't  tell  from the  internet  [copy of  the                                                                    
     bill].   This  bill  started in  the [Senate  Resources                                                                    
     Standing Committee]  and I think  it should get  to the                                                                    
     [House Resources Standing Committee].                                                                                      
                                                                                                                                
9:08:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ELKINS asked Mr. Kwachka to submit his testimony                                                                 
to the committee in written form as well.                                                                                       
                                                                                                                                
9:09:27 AM                                                                                                                    
                                                                                                                                
DARIK LARIONOFF, from Old Harbor, testified in opposition to SB                                                                 
113.  He said:                                                                                                                  
                                                                                                                                
     I believe that if this bill  is passed, it will do more                                                                    
     harm than good  to the coastal communities.   In places                                                                    
     like Old  Harbor fishing provides  the majority  of our                                                                    
     income,  and if  this bill  passes it  will mean  fewer                                                                    
     jobs  in an  already  economically troubled  community.                                                                    
     Our community  has seen  a drastic cut  in jobs  due to                                                                    
     the  halibut IFQ  program  and low  salmon  prices.   I                                                                    
     personally  have  been forced  to  find  a fishing  job                                                                    
     outside of  my village.   To allocate access  rights to                                                                    
     our  natural  resources  would be  detrimental  to  the                                                                    
     small  boat  fishing  fleet  from   my  village.    The                                                                    
     resulting consolidation  would force even  more crewmen                                                                    
     to compete for  an already limited number of  jobs.  In                                                                    
     a community where  a good portion of  its residents are                                                                    
     on some form of government  aid, I feel it is necessary                                                                    
     to  create jobs  for more  people  and not  make a  few                                                                    
     people more wealthy.                                                                                                       
                                                                                                                                
9:11:00 AM                                                                                                                    
                                                                                                                                
DONALD J.  LAWHEAD, Jr., from Kodiak,  stated that he has  been a                                                               
commercial fisherman for  14 year, fishing for  salmon, gray cod,                                                               
black  cod, halibut,  and crab,  and he  has three  limited entry                                                               
permits.  He testified in opposition to SB 113.  He stated:                                                                     
                                                                                                                                
     I'm against SB 113.  This  is a blank check that allows                                                                    
     anything to be formed.  That  is too much power to give                                                                    
     someone.   Section 1, [paragraph]  7 [of the  bill], it                                                                    
     states  the  board  or  the [CFEC]  or  both  have  the                                                                    
     authority to  give exclusive harvest shares  to persons                                                                    
     or vessel  owners as  members of  harvest associations.                                                                    
     In the  state constitution,  Article 8, [it  says that]                                                                    
     no exclusive  rights or special privilege  of fisheries                                                                    
     shall be  created or authorized  in the  natural waters                                                                    
     of  the  State  of  Alaska.    This  section  does  not                                                                    
     restrict the  power of  the state  to limit  entry into                                                                    
     any fishery.                                                                                                               
                                                                                                                                
     Key  words   here:  no   exclusive  right   or  special                                                                    
     privilege.    That's  what  this  bill  creates.    The                                                                    
     constitution  gives  equal  access to  everyone.    The                                                                    
     Limited Entry Act  changed fisheries, but if  you buy a                                                                    
     limited  entry permit,  you have  equal access  to that                                                                    
     resource.   Senate Bill 113  would give  each fishermen                                                                    
     unequal shares; this is too exclusive.                                                                                     
                                                                                                                                
     "Association" is  just another word  for a co-op.   Co-                                                                    
     ops are  bad for the  people of  Alaska.  Jobs  will be                                                                    
     lost.   The  Chignik  Co-op was  ruled  illegal by  the                                                                    
     Alaska  Supreme Court.   The  working assumption  since                                                                    
     statehood  has  been  that individuals  operate  Alaska                                                                    
     commercial     fisheries,    not     corporations    or                                                                    
     associations.   Look  at the  Bering Sea:  huge foreign                                                                    
     owned corporations  own the  resources.   The fishermen                                                                    
     have  to deliver  to  them.   That's  what the  federal                                                                    
     government has  done out there.   The state  should not                                                                    
     do what the  federal government is doing.   If you want                                                                    
     this, it should be for  all state waters, including the                                                                    
     Bering  Sea and  Aleutians.   Millions  of dollars  are                                                                    
     leaving the  state by out  of state fishermen.   If you                                                                    
     want equal access, first thing  you should do: you must                                                                    
     be a  state resident to  harvest state fish.   That way                                                                    
     the money stays home.                                                                                                      
                                                                                                                                
MR. LAWHEAD continued:                                                                                                          
                                                                                                                                
     There  also  should be  an  economic  study on  SB  113                                                                    
     before it's  considered.  There  will be  fewer fishing                                                                    
     jobs, fewer processing jobs in  the state [if SB 113 is                                                                    
     passed].  When the state  banned fish traps in 1960, it                                                                    
     created  6,000 jobs.   We're  going backwards.   That's                                                                    
     the wrong  way to go.   We  can slow fisheries  down by                                                                    
     restricting gear  and time fished.   I'm for  a limited                                                                    
     entry permit.   We  already have the  tools -  we don't                                                                    
     want to  open Pandora's  box.  This  bill should  go to                                                                    
     the [House Resources Standing Committee] also.                                                                             
                                                                                                                                
     And  on a  side  note,  the reason  why  the state  pot                                                                    
     season in  Kodiak has progressed  faster is  because of                                                                    
     the sea  lion closures  in the federal  waters.   It is                                                                    
     [indisc.]  60 percent  of  the fish  is  caught in  the                                                                    
     winter, 40  percent in  the fall.   It's  left millions                                                                    
     and  millions  of pounds  of  uncaught  fish in  Kodiak                                                                    
     waters [indisc.] for the state fishery.                                                                                    
                                                                                                                                
9:14:29 AM                                                                                                                    
                                                                                                                                
STANLEY MACK testified in opposition to SB 113.  He said that he                                                                
was born and raised in the Aleutians East Borough and he has                                                                    
fished all his life.  He stated:                                                                                                
                                                                                                                                
     I'm  66 years  old.    I've seen  the  process of  this                                                                    
     system  work and  I've seen  it fail.   Two  questions:                                                                    
     One is,  "What does SB 113  do?"  My answer:  Nothing -                                                                    
     it  destroys a  fishery;  it  destroys everything  that                                                                    
     we've  worked  so  hard  for.    I'm  opposed  to  this                                                                    
     legislation.   It's so ambiguous  that it would  take a                                                                    
     group  of attorneys  weeks to  figure it  out and  then                                                                    
     you'd have  to have a  judge to administer  a decision.                                                                    
     Earlier  testimony  gets  right  to the  heart  of  the                                                                    
     matter in  regard to the  ambiguity of the bill.   From                                                                    
     what I  can gather,  from all that  I've read  in here,                                                                    
     they've  identified two  species  of fish  that are  of                                                                    
     major  concern, that  being pollock  and cod.   They've                                                                    
     left  out  all  the  others.   There're  several  other                                                                    
     species  of  bottom  fish  out   there  that  we  could                                                                    
     probably  harvest   as  soon  as  the   markets  become                                                                    
     available.   We've been  able to do  that out  here now                                                                    
     that  we've  been connected  to  the  road system,  and                                                                    
     transportation  and  communication is  becoming  better                                                                    
     available.  We're able to  move laterally; that was the                                                                    
     way of life out in this  area for years.  We're able to                                                                    
     move from one fishery to  the other.  But that's slowly                                                                    
     being taken away from us.                                                                                                  
                                                                                                                                
MR. MACK continued:                                                                                                             
                                                                                                                                
     The allocation that the state  gets from the [NPFMC] is                                                                    
     what  we'll  have  to  worry about,  I  believe.    And                                                                    
     they're the holders of all  the chips in this game, the                                                                    
     way it looks  to me.  Until the state  can come up with                                                                    
     a better  idea or a  better way of a  larger allocation                                                                    
     of that  fishery, (and I  believe it's ours,  the State                                                                    
     of Alaska's), we're  going to have to  be fighting that                                                                    
     quota system.  I think  we've got a wonderful system in                                                                    
     place  now   called  limited  entry.     That   gave  a                                                                    
     crewmember  a chance  to work  his way  up the  ladder.                                                                    
     This dedicated access takes that away from him. ...                                                                        
                                                                                                                                
     All  the   folks  out  here,  locals,   have  families.                                                                    
     They've been born and raised out  here, as did a lot of                                                                    
     the other  communities on the  coast.  There  were some                                                                    
     communities  that were  left out  of the  limited entry                                                                    
     program for  salmon simply because  they didn't  have a                                                                    
     means   of  processing.     Now   they  do:   with  the                                                                    
     transportation  corridors  now  being  linked  together                                                                    
     better, they're able  to do a little  bit of processing                                                                    
     of the bottom  fish and being able to ship  them out to                                                                    
     domestic markets and  make a little bit of  money.  But                                                                    
     you take  that away from  them, you're going to  kill a                                                                    
     community.    Some of  the  communities  only have  one                                                                    
     processor  out here.   That's  scary. ...  They chucked                                                                    
     competition out  of the  entire equation.   I  just see                                                                    
     this on a  downward spiral, and I think  there's got to                                                                    
     be some more research.  If  there's got to be a program                                                                    
     put   in  place,   let's  do   some  research   in  it,                                                                    
     particularly  in  the  areas   that  are  going  to  be                                                                    
     dramatically affected by it.                                                                                               
                                                                                                                                
9:18:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ELKINS  asked Mr.  Mack  if  he agreed  with  the                                                               
opinion that if  SB 113 was passed, there would  be less Alaskan-                                                               
owned boats and less Alaskan skippers than there are today.                                                                     
                                                                                                                                
MR. MACK agreed with this.                                                                                                      
                                                                                                                                
REPRESENTATIVE  ELKINS  commented that  there  is  a pretty  high                                                               
percentage of non-Alaskan boats already.                                                                                        
                                                                                                                                
9:19:27 AM                                                                                                                    
                                                                                                                                
WESTON CARROLL testified  in support of SB 113.   He said that he                                                               
is a second-generation fisherman in  Homer, and he derives all of                                                               
his income from fishing salmon and cod.  He stated:                                                                             
                                                                                                                                
     I support this  bill because I have  concerns about the                                                                    
     current direction  of the  groundfish fishery  for cod.                                                                    
     My  biggest  concern  is  how  the  season  is  getting                                                                    
     shorter  each year,  which increases  the safety  risks                                                                    
     and decreases the profitability.   There are definitely                                                                    
     things I  see with the  IFQ program and  with dedicated                                                                    
     access,  or privatization  of fisheries,  which concern                                                                    
     me.   But I  trust the  [BOF] process  we have  in this                                                                    
     state  to  improve upon  these  programs  and create  a                                                                    
     program that  will benefit those  involved.  I  feel we                                                                    
     have  no  choice  but   to  pursue  rationalization  of                                                                    
     groundfish  because it  is one  of  the only  fisheries                                                                    
     that  is  left unregulated  and  unrestricted.   To  be                                                                    
     involved  in one  of  the  only unrestricted  fisheries                                                                    
     leaves  you open,  and leaves  you no  ability to  have                                                                    
     confidence  in  the  future  of  what  your  fish  will                                                                    
     provide  for your  family.   I  support  this bill  and                                                                    
     trust the [BOF] process to do  a good job in the future                                                                    
     of  creating   a  program   that  will   benefit  those                                                                    
     involved.                                                                                                                  
                                                                                                                                
9:20:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON  asked Mr. Carroll what  he predicted would                                                               
happen if the bill didn't pass.                                                                                                 
                                                                                                                                
MR. CARROLL  replied that his  biggest concern is that  each year                                                               
the fishery  season is shorter.   He noted  that he fishes  in an                                                               
area where the  volume of fish caught each day  is fairly low, so                                                               
as the  season gets shorter,  his total  catch for the  season is                                                               
drastically reduced.  He said  that since other fisheries such as                                                               
crab and halibut  are restricted, it leaves cod as  the only open                                                               
fishery; therefore when new people decide get involved, they                                                                    
have no choice but to fish for cod.  He added:                                                                                  
                                                                                                                                
     As   more  people   get  involved,   it  becomes   less                                                                    
     profitable for  those who've been  doing it  for years.                                                                    
     So  it's kind  of like  I'm  left in  the only  fishery                                                                    
     unrestricted,  and I  can't  really  predict what  next                                                                    
     year's income will be from  it because a whole bunch of                                                                    
     more boats  jump in since  it's the only  open fishery,                                                                    
     [and] I could see my income significantly reduced.                                                                         
                                                                                                                                
9:22:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ELKINS asked Mr. Carroll, "So you're saying that                                                                 
if this legislation passes, there should be more Alaska-owned                                                                   
boats and less non-Alaskan-owned boats, is that right?"                                                                         
                                                                                                                                
MR. CARROLL said that he didn't know, but that he is definitely                                                                 
in favor of seeing more of the fisheries controlled by the state                                                                
and coastal communities.                                                                                                        
                                                                                                                                
9:23:15 AM                                                                                                                    
                                                                                                                                
SYLVIA KAVANAUGH, from Kodiak, said that she is 13 years old.                                                                 
She gave the following [sarcastic] testimony:                                                                                   
                                                                                                                                
     My  dad  is  a  commercial fisherman  and  we  are  100                                                                    
     percent dependent on fishing for  income.  I would like                                                                    
     to thank  the sponsor, ... and  governor for supporting                                                                    
     SB 113.  I see this  bill as a great opportunity for my                                                                    
     future.   Senate Bill 113  will do several things.   My                                                                    
     mom says  that if the  bill goes through, Dad  will get                                                                    
     to be home more.  He  will be able to have someone else                                                                    
     fish for  him.  We  might not  have a boat,  but that's                                                                    
     okay,  especially  if Dad  gets  to  stay home.    Then                                                                    
     there's the  best part:  someday when  I take  over the                                                                    
     family affairs,  I will  get to  have my  dad's fishing                                                                    
     history.   Then I will  have other people fish  for me.                                                                    
     Plus, I won't  even have to help catch the  fish.  See,                                                                    
     I  don't think  I'll  stay in  Alaska.   So  SB 113  is                                                                    
     perfect for  me: I'll have  extra income even  though I                                                                    
     live somewhere else.   This is a great  opportunity.  I                                                                    
     can do other stuff and  these DAP-things will just keep                                                                    
     on working for  me.  It's only fair, you  know - my dad                                                                    
     worked really  hard.  He's  a great fisherman.   People                                                                    
     tell him all the time  that this DAP-thing will set him                                                                    
     up and that  it was made for guys like  him.  So thanks                                                                    
     {BOF], and  oh, by  the way, I  wouldn't put  any extra                                                                    
     stuff in  this bill; that  would just make  things more                                                                    
     difficult, if  you know what  I mean.  You  know, owner                                                                    
     on board  junk, or  public meetings.   Sideboards sound                                                                    
     kind of crazy  to me.  Let's get this  thing through so                                                                    
     I can sit  back and relax.  Senate Bill  113 is great -                                                                    
     even if you don't want to fish.                                                                                            
                                                                                                                                
MS. KAVANAUGH continued:                                                                                                        
                                                                                                                                
     To finish up,  my dad says that you guys  don't have to                                                                    
     worry because  this bill is  written really good.   You                                                                    
     don't  have anything  to  worry about  in  this bill  -                                                                    
     that's all  left up to the  other guys that fix  it all                                                                    
     up later.   So even if it gets messed  up or somebody's                                                                    
     not happy,  it won't be  your fault.  That's  a win-win                                                                    
     deal for you  and me.  Give  me my DAPs and  I'm out of                                                                    
     here.                                                                                                                      
                                                                                                                                
9:26:17 AM                                                                                                                    
                                                                                                                                
NEIL RICKMAN,  from Sitka,  said that 100  percent of  his income                                                               
comes from  jig fishing in Alaska.   He explained that  he fishes                                                               
for  rockfish  near  Sitka  and  for  cod  near  Kodiak  and  the                                                               
Aleutians.  He stated:                                                                                                          
                                                                                                                                
     My worry  with this bill  is that it's going  to change                                                                    
     the idea of  why the state waters fisheries  was set up                                                                    
     to begin  with, with  open access, entry  level fishery                                                                    
     for  people exactly  like me  who didn't  have anything                                                                    
     and starting building  on that.  Now I own  my own boat                                                                    
     and  I'm doing  fairly well  at it;  I'm happy  with my                                                                    
     income.   The problem  is, my first  three years  of my                                                                    
     catch history  was through a  leased boat, and  I don't                                                                    
     know if  I'll see  any of that  catch history  in these                                                                    
     DAPs.   Art Nelson  said earlier that  the IFQ  and the                                                                    
     DAP  programs   were  completely  different,   but  the                                                                    
     implementation of it  is if I don't get  any DAPS, even                                                                    
     though that  they may come  up for review later  on, it                                                                    
     doesn't do  me any good  because next year I've  got to                                                                    
     go fishing again to make my  living, and if I don't get                                                                    
     any DAPs, I  can't go fishing, even  though there might                                                                    
     be some open access available.                                                                                             
                                                                                                                                
     I'm just  worried that  it's going to  change it  and I                                                                    
     think  ...  right  now,  the  way  it's  working,  it's                                                                    
     working fine for  me. ... I'm just  concerned about the                                                                    
     ambiguity  of what's  not being  talked about  here and                                                                    
     just leaving  it up to  the [BOF]  later on to  come up                                                                    
     with  all the  details -  it's the  details [that  are]                                                                    
     going to affect my livelihood.                                                                                             
                                                                                                                                
9:28:14 AM                                                                                                                    
                                                                                                                                
LOCKE FINLEY said that he has been involved in fishing most of                                                                  
his life.  He noted that he is the secretary/treasurer, Alaska                                                                  
Jig Association.  He stated:                                                                                                    
                                                                                                                                
     I feel  that SB 113  would give  too much power  to the                                                                    
     processors.   If they got  ownership of the  DAPs, they                                                                    
     could  begin to  sell their  halibut bycatch,  and thus                                                                    
     marginalize  the value  of IFQ  halibut shares  and ex-                                                                    
     vessel value.   Also,  fishermen would  not be  able to                                                                    
     market  their  own  fish.    The  rationale  given  for                                                                    
     rationalization  is  that   currently  the  fishery  is                                                                    
     unsafe.  That's  not true for the fixed  gear group; we                                                                    
     don't risk life  and limb for the fish  currently.  The                                                                    
     fixed  gear  group  has  the  highest  quality  product                                                                    
     caught in  the most  ecologically friendly  manner with                                                                    
     the  least  bycatch and  zero  mortality  rate of  that                                                                    
     bycatch.  You  can't say that about  trawling.  Indeed,                                                                    
     we should  keep fixed gear fishing  going because, with                                                                    
     environmental concerns  growing, the trawl  fishing may                                                                    
     be cut back, and we could  use fixed gear to harvest in                                                                    
     their place.                                                                                                               
                                                                                                                                
     In the jig  sector, we have 144  registered vessels and                                                                    
     we  are  catching the  cod  at  a  rate of  [200,000  -                                                                    
     800,000]  pounds a  week.   We  are in  an open  access                                                                    
     fishery  and anyone  can buy  a jig  license for  $60 a                                                                    
     year and  go fishing.  That  was a good way  to get the                                                                    
     fishery going,  but now  it's time  to limit  the entry                                                                    
     and maybe the catch rates  too in order to equalize the                                                                    
     opportunity  amongst the  jig fleet,  or other  fleets;                                                                    
     maybe the pot  fleet too.  We have the  tools to tailor                                                                    
     the  fishery  to the  greatest  good  for the  greatest                                                                    
     number of people, so don't  rationalize us.  That would                                                                    
     just cause  a lot  of consolidation  and major  loss of                                                                    
     jobs.                                                                                                                      
                                                                                                                                
     One final thought:  aquaculture  is a loathsome idea to                                                                    
     begin with, forcing nature to  perform to our standards                                                                    
     and  upsetting lifecycles  of  various ocean  habitats.                                                                    
     I'm  referring to  the  feeding of  fish  in pens,  and                                                                    
     those fish  contaminating an  area of  the sea.   Could                                                                    
     rationalization assist the aquaculture  movement?  So I                                                                    
     ask you  to examine the bill  in the light of  just who                                                                    
     is benefiting  and is  it in the  best interest  of the                                                                    
     state.   If  not, let's  table the  thing, hold  public                                                                    
     hearings,  and  let's be  the  stewards  of this  great                                                                    
     state instead of the usurpers of it.                                                                                       
                                                                                                                                
9:30:54 AM                                                                                                                    
                                                                                                                                
KIP THOMET said that he is a Kodiak resident and has been a                                                                     
fisherman for the past 21 years.  He stated:                                                                                    
                                                                                                                                
     You're going  to hear from  a lot of people  today both                                                                    
     for and against  this bill.  You're going  to hear from                                                                    
     the  paid lobbyists  and the  consultants hired  by the                                                                    
     drag  boat  owners.   You're  going  to hear  from  the                                                                    
     managers  of  some of  the  foreign  and Outside  owned                                                                    
     processing plants.   And  you're going  to hear  from a                                                                    
     number  of boat  owners who  no longer  believe in  the                                                                    
     value of the free  enterprise system and competition in                                                                    
     the marketplace now that they  have the chance of being                                                                    
     one  of  the  lucky  winners in  this  public  resource                                                                    
     giveaway  plan.   And they're  going to  tell you  that                                                                    
     this new  DAP program  is the  best thing  since sliced                                                                    
     bread.                                                                                                                     
                                                                                                                                
     You're  also going  to  hear from  a  bunch of  working                                                                    
     fishermen  and women,  deckhands, skippers,  small boat                                                                    
     owners, the small  business owners.  And  they are what                                                                    
     a  certain [BOF]  member referred  to as,  "losers," in                                                                    
     his "any plan will  have winners and losers" statement.                                                                    
     Now these folks, they're going  to tell you that SB 113                                                                    
     is the worst thing for this state since fish traps.                                                                        
                                                                                                                                
     Now the proponents  of this bill are going  to tell you                                                                    
     that these "losers" or  opponents are just misinformed;                                                                    
     that all this bill will do  is give a tool to the [BOF]                                                                    
     to better  manage our state  water fisheries,  and that                                                                    
     the board and CFEC would  never use this tool unless it                                                                    
     was requested  from "industry."  They'll  also tell you                                                                    
     that this  bill will protect the  state water fishermen                                                                    
     from Outside fishermen, and will  also tell you that we                                                                    
     need this bill to slow down  the rates for fish.  These                                                                    
     are all debatable points.                                                                                                  
                                                                                                                                
     What  they won't  tell you  is this:  it's the  biggest                                                                    
     proposed change  in state  fisheries management  in the                                                                    
     last   30  years.      Instead   of  requiring   active                                                                    
     participation  from the  access holders,  it encourages                                                                    
     nonparticipation  and  absentee  ownership.   When  the                                                                    
     feds went  down this road  with halibut and  black cod,                                                                    
     there  was  an  exodus  of  wealth  from  this  coastal                                                                    
     fishing town,  and Kodiak is  suffering the  effects of                                                                    
     that now.                                                                                                                  
                                                                                                                                
MR. THOMET continued:                                                                                                           
                                                                                                                                
     They also won't tell you  about the elimination of jobs                                                                    
     through  the   use  of   harvesting  co-ops,   and  the                                                                    
     inevitable  consolidation of  access  rights that  this                                                                    
     bill  will allow.   There  [are] a  lot of  things they                                                                    
     won't tell you,  but there's even more  that they don't                                                                    
     know - none  of us know.  I've read  this bill numerous                                                                    
     times.   I've read  the MOU.   I've read  the committee                                                                    
     substitute.   And  I've come  here to  the [Legislative                                                                    
     Information   Office  (LIO)]   for  just   about  every                                                                    
     committee hearing  there has been  on this bill,  and I                                                                    
     still don't know  what this is all about,  and how it's                                                                    
     going to work,  and how this plan is  going to actually                                                                    
     benefit this state.                                                                                                        
                                                                                                                                
     I would  like to ask  that if  you don't just  stop and                                                                    
     kill this bill  now, that you at least sit  on it until                                                                    
     you   and  I   and   everybody  else   gets  a   better                                                                    
     understanding  of  how  it   will  affect  our  coastal                                                                    
     fishing towns and  our working fishermen.   I think you                                                                    
     owe that to the fishing families of this great state.                                                                      
                                                                                                                                
9:34:50 AM                                                                                                                    
                                                                                                                                
LEIGH THOMET, from Kodiak, stated that her family is 90 percent                                                                 
dependent on commercial fishing for living, though they do not                                                                  
participate in the jig or parallel fisheries.  She stated:                                                                      
                                                                                                                                
     We are  against [SB 113]  for many reasons.   This bill                                                                    
     clearly  goes against  our  state  constitution in  two                                                                    
     ways.    First, it  bypasses  our  basic right  to  our                                                                    
     legislative  process  by  allowing the  {BOF]  to  make                                                                    
     decisions  that  should  be  made  on  the  legislative                                                                    
     level.   And second,  it allows  the allocation  of our                                                                    
     state fishery resources,  ... equating to privatization                                                                    
     of  public  resources.    Both   of  these  issues  are                                                                    
     seriously  impendent   to  my  rights  as   an  Alaskan                                                                    
     citizen.  It has been  eluded to that this will benefit                                                                    
     coastal  communities,  [but]  the benefit  to  specific                                                                    
     user groups is  outweighed by the economic  loss to our                                                                    
     local residents  and our  communities.   We do  not see                                                                    
     this   as   beneficial   to   the   majority   of   the                                                                    
     stakeholders,   that   being   our   fishermen,   their                                                                    
     families, and  our local communities.   The Senate bill                                                                    
     will only benefit a select  few, and the bill itself is                                                                    
     not  even clear  as  to  who those  are  - however,  my                                                                    
     thoughts are  [that it would benefit]  the trawl fleet.                                                                    
     If our  state is in  need of  a new program  to address                                                                    
     issues  within  the  fishery, they  should  follow  the                                                                    
     normal process  of starting at  the local level  to see                                                                    
     what would  be the  most beneficial to  the communities                                                                    
     and  those that  are  involved.   Any  program that  is                                                                    
     implemented needs  the support  of all those  that will                                                                    
     ultimately be affected.                                                                                                    
                                                                                                                                
9:36:44 AM                                                                                                                    
                                                                                                                                
JAY STINSON,  President, Alaska Draggers Association  (ADA), said                                                               
that he is  the owner and operator of the  F/V Alaskan, a 73-foot                                                               
trawler,  longliner,   tanner  crab  pot  boat,   and  occasional                                                               
research  vessel.    He  commented   that  the  ADA  is  a  local                                                               
organization representing  approximately 35  vessels in  the GOA.                                                               
He stated:                                                                                                                      
                                                                                                                                
     I am  in support of [SB  113] for a myriad  of reasons,                                                                    
     one of which [is that]  all of the groundfish fisheries                                                                    
     except   probably   arrowtooth   flounder   are   fully                                                                    
     exploited in the  {GOA].  Now the question  is not "can                                                                    
     we catch the  ... resource," but "who's  going to catch                                                                    
     the resource  and how is  that going to  be allocated."                                                                    
     Those  are  difficult  decisions.    For  every  winner                                                                    
     there's going to be a loser.   And you're hearing a lot                                                                    
     of that  debate today.  This  is a question of  who has                                                                    
     access to the resource.                                                                                                    
                                                                                                                                
     What used  to be a year-round  groundfish industry here                                                                    
     in Kodiak has  been reduced to an industry  that now is                                                                    
     prosecuted in the  course of several months.   In order                                                                    
     for the  state to optimize  the value of  its resources                                                                    
     and make  the best  use of  those resources,  we really                                                                    
     need to figure  out a way that we can  reduce this race                                                                    
     for fish so  that we can concentrate  on increasing the                                                                    
     value  of  that  resource  so   that  we  can  increase                                                                    
     employment   opportunities   for   community   members.                                                                    
     Certainly, as  we move through this  process, there may                                                                    
     be fewer jobs, but the  jobs that remain will be better                                                                    
     jobs and  longer jobs  - more days  at sea  versus more                                                                    
     fishermen on  the water for  a shorter period  of time.                                                                    
     If that's  what you  want, if you  want to  create more                                                                    
     jobs, I would  suggest status quo.  But if  you want to                                                                    
     compete and look at who  our competition is coming from                                                                    
     the  Bering  Sea  and   Canada,  they've  gone  through                                                                    
     processes  that  try  to  optimize  the  value  of  the                                                                    
     resource, address issues of bycatch, etc.                                                                                  
                                                                                                                                
MR. STINSON continued:                                                                                                          
                                                                                                                                
     One  of my  concerns  as a  pollock  fisherman is  that                                                                    
     approximately 17 percent of the  pollock in the Central                                                                    
     Gulf  is  harvested  in  inside  waters.    The  Prince                                                                    
     William Sound has a pollock  fishery that is completely                                                                    
     state waters oriented.  That  particular fishery is the                                                                    
     last open access fishery on the west coast.                                                                                
                                                                                                                                
9:40:16 AM                                                                                                                    
                                                                                                                                
SHAWN DOCHTERMANN  said that  he is a  jig fisherman  from Kodiak                                                               
Island.  He noted that he  has fished statewide for 28 years, and                                                               
has halibut IFQs,  a Bristol Bay drift permit, and  he fishes for                                                               
crab in  the Bering Sea.   He added  that he  is on the  board of                                                               
directors of the Alaska Jig Association.  He stated:                                                                            
                                                                                                                                
     I  have addressed  this bill  with opposition  since it                                                                    
     was submitted in early March.   After careful review of                                                                    
     the  sponsor statement  in the  bill, I  wrote a  three                                                                    
     page summary  analysis of  its flaws,  and it  has been                                                                    
     submitted with other testimonies.   We in opposition of                                                                    
     this  bill  have  asked  numerous  pertinent  questions                                                                    
     about the [DAP] program, but why  it is that any of our                                                                    
     significant questions  have never been addressed?   Any                                                                    
     responses  to our  questions  that  have been  answered                                                                    
     have been elusive.  There  is no true direction of what                                                                    
     the bill will  actually do except create  a new program                                                                    
     that  impinges  on  many fishermen's  rights  to  equal                                                                    
     access.                                                                                                                    
                                                                                                                                
     The  memorandum that  was produced  for April  25, 2005                                                                    
     [Senate  Resources Standing  Committee] meeting  by the                                                                    
     [CFEC]  is only  agency drafted,  not a  legal document                                                                    
     that  is   proof  of   DAPs  constitutionality.     The                                                                    
     Department  of  Law would  need  to  produce the  legal                                                                    
     document that  would assume that  DAPs could  be legal.                                                                    
     This  bill  uses  the word  "allocation"  and  then  in                                                                    
     another context  says it's  not a  resource allocation,                                                                    
     so which  one is  it?   The sponsor  of this  bill just                                                                    
     wants  you to  pass this  bill without  it being  fully                                                                    
     examined.   Instead  of  looking at  this  bill with  a                                                                    
     telescope,   shouldn't   it   be   inspected   with   a                                                                    
     microscope?   Now I ask you,  will this bill be  in the                                                                    
     best  interests  of  the state,  its  communities,  its                                                                    
     businesses, its  fishermen, and its citizens?   Can you                                                                    
     the representatives say  that you reasonably understand                                                                    
     this bill?   What  are the  consequences of  this bill?                                                                    
     How can  we know  without an economic  impact statement                                                                    
     what  that  will  be?    Will  it  affect  our  economy                                                                    
     adversely?   If you  don't fully understand  this bill,                                                                    
     then how  could you  vote anything but  "no"?   We have                                                                    
     time to  work on  a democratic rationalization,  and we                                                                    
     can start right  after this session is  finished.  What                                                                    
     is  the hurry  to push  this bill?   Since  ex-governor                                                                    
     Hammond has weighed  in on this issue,  shouldn't we be                                                                    
     examining this bill further than this committee?                                                                           
                                                                                                                                
9:42:49 AM                                                                                                                    
                                                                                                                                
MR. DOCHTERMANN continued:                                                                                                      
                                                                                                                                
     The  economic  stability  of the  State  of  Alaska  is                                                                    
     dependent on  the protection of its  natural resources,                                                                    
     therefore this  bill next must  referred to  the [House                                                                    
     Resources  Standing Committee].    I  encourage you  to                                                                    
     review my Senate  testimonies that I have  provided.  I                                                                    
     would also  appreciate it if  all you would  take great                                                                    
     care  in reviewing  this bill  from stem  to stern.   I                                                                    
     hope  that all  of  the members  of  the House  Special                                                                    
     Committee on Fisheries would contact  me at any time in                                                                    
     the future.  In closing,  if a CFEC commissioner writes                                                                    
     an editorial  in a  newspaper and  signs it  with their                                                                    
     credentials  about this  bill,  is this  a conflict  of                                                                    
     interest?                                                                                                                  
                                                                                                                                
9:43:40 AM                                                                                                                    
                                                                                                                                
RALEIGH EAGER said that he is a Kodiak deckhand and he has                                                                      
earned all of his income from commercial fishing for the past 10                                                                
years.  He stated:                                                                                                              
                                                                                                                                
     There's some issues  that I would like  you to consider                                                                    
     before deciding  on SB  113.   First, this  [DAP] would                                                                    
     impinge  on  my  rights  to equal  access  and  clearly                                                                    
     allows  for   special  privileges   to  be   issued  in                                                                    
     contravention  of  the  first sentence  of  Article  8,                                                                    
     Section  15 of  the Alaska  State Constitution.   Also,                                                                    
     allocating   apportionment  to   associations,  co-ops,                                                                    
     and/or processing groups is in  direct violation of the                                                                    
     Limited Entry  Act amendment of  1972, "Rights  to fish                                                                    
     can  only be  issued to  an individual  to prosecute  a                                                                    
     fishery."                                                                                                                  
                                                                                                                                
     Secondly, public  hearings will have no  meaning if the                                                                    
     [BOF] and  the [CFEC]  have no mandates  or guidelines.                                                                    
     Without full disclosure of the  plan for DAP, this bill                                                                    
     should not be  passed into law.  Likewise,  most of the                                                                    
     groundfish   stakeholders  group,   appointed  by   the                                                                    
     [NPFMC] does not  constitute a legitimate cross-section                                                                    
     representative of  the harvesting sector interests.   A                                                                    
     new  stakeholders group  must  be  appointed through  a                                                                    
     democratic process, including  full representation from                                                                    
     the  harvester sectors  and  small  business end  whose                                                                    
     livelihood depend on them.                                                                                                 
                                                                                                                                
MR. EAGER continued:                                                                                                            
                                                                                                                                
     I have  heard the  halibut and  black cod  IFQ programs                                                                    
     used  as an  example.   This program  has improved  the                                                                    
     fishery  in many  ways.   However,  it  has promoted  a                                                                    
     trend  towards absentee  ownership of  the resource  to                                                                    
     the point  where it  is now  possible for  investors to                                                                    
     purchase shares  in IFQ mutual  funds -  profiting from                                                                    
     the  fisheries with  no direct  involvement.   How many                                                                    
     non-producing  interested  parties   can  our  industry                                                                    
     support?   There  seems  to be  a  serious danger  that                                                                    
     future generations  of fishermen  will be  relegated to                                                                    
     sharecropper status.   I think that  such consolidation                                                                    
     of  control  over the  resource  will  lead to  a  less                                                                    
     dynamic community and much  less opportunity for future                                                                    
     fishermen.                                                                                                                 
                                                                                                                                
     Please ask  yourselves these questions:   Is it prudent                                                                    
     to  pass such  wide-sweeping  changes  to the  industry                                                                    
     without  thorough examination  of  its  effects on  the                                                                    
     community?    Have  all relevant  impact  studies  been                                                                    
     conducted?  How will it  affect the financial health of                                                                    
     our   community  in   the  future?     Does   it  allow                                                                    
     opportunity  for  the  next generation  of  independent                                                                    
     small  businessmen  seeking  to make  their  homes  and                                                                    
     businesses in coastal Alaska?                                                                                              
                                                                                                                                
9:46:15 AM                                                                                                                    
                                                                                                                                
JULIE  BONNEY said  that  she represents  the  members of  Alaska                                                               
Groundfish Databank, including  shore-based trawl catcher vessels                                                               
and  shore-based processors.   She  noted that  she has  lived in                                                               
Alaska for 22 years.  She stated:                                                                                               
                                                                                                                                
     The  reality is  [that] the  management system  that we                                                                    
     have for  groundfish fisheries in  the State  of Alaska                                                                    
     is broken.   There is a race for fish.   And because of                                                                    
     that  we lose  economic value.   I've  seen one  report                                                                    
     that  suggests that  the  groundfish  fisheries in  the                                                                    
     [GOA]  could increase  from $60  million  on an  annual                                                                    
     basis to  over $80 million  just by moving away  from a                                                                    
     race to fish  to a dedicated access approach.   I think                                                                    
     people are  misinformed when they suggest  that a [DAP]                                                                    
     will lead  to all of the  second generational problems,                                                                    
     absentee ownerships.  All those  issues are going to be                                                                    
     addressed in the [BOF] process.                                                                                            
                                                                                                                                
     I  believe   that  the  State  of   Alaska,  with  this                                                                    
     particular legislation,  has the ability to  drive what                                                                    
     happens on the federal side  in terms of the definition                                                                    
     of an access  privilege.  Working for  the trawl fleet,                                                                    
     I think it's  important for people to  realize that the                                                                    
     Central  Gulf trawlers  only have  2  percent of  their                                                                    
     history  for cod  inside three  miles.   The issue  for                                                                    
     them  is  pollock.   And  when  you  look at  what  the                                                                    
     eastern seaboard  does for  their fisheries,  they have                                                                    
     what  they   call  "input   controls"  which   is  gear                                                                    
     restrictions, trip  limits, days at sea.   That fishery                                                                    
     has been  totally decimated  because of  the management                                                                    
     structure.  When  you move to an  output control, which                                                                    
     in   an  allocation   to  an   individual,  when   that                                                                    
     individual  owns that  fish, then  they're going  to do                                                                    
     everything  they can  to maximize  the amount  of money                                                                    
     that  they make  from the  fish, and  also to  take the                                                                    
     fish in the most conservation-friendly way.                                                                                
                                                                                                                                
     For the  trawl sector in  the Central Gulf, we  want to                                                                    
     move forward with bycatch controls  and do a better job                                                                    
     with stewardship of  the resource, but the  only way we                                                                    
     can   get   there   is   through   some   kind   of   a                                                                    
     rationalization plan.                                                                                                      
                                                                                                                                
MS. BONNEY continued:                                                                                                           
                                                                                                                                
     I served  on the [BOF]  task force.   I believe  that a                                                                    
     dedicated  access  approach  can be  built  that  meets                                                                    
     constitutional    muster,    especially    the    least                                                                    
     impingement portion of the constitution.   I also think                                                                    
     it's important  for you  to realize  that if  the state                                                                    
     doesn't  react  to  federal rationalization,  State  of                                                                    
     Alaska  fishermen  are   going  to  be  disenfranchised                                                                    
     because the  federal folks  will have  allocations, and                                                                    
     then they  can jump into  the state pool at  their whim                                                                    
     and take away from Alaskans.                                                                                               
                                                                                                                                
9:49:32 AM                                                                                                                    
                                                                                                                                
ANDY  LUNDQUIST said  that he  is a  20-year business  owner from                                                               
Kodiak.   He noted that  he has  participated in the  halibut and                                                               
cod jig  fishery, but  he was primarily  speaking as  a concerned                                                               
business owner and a resident of Kodiak.  He stated:                                                                            
                                                                                                                                
     Senate  Bill 113  is a  bad bill.   I'm  here to  state                                                                    
     opposition   to   it.       Our   present   method   of                                                                    
     constitutionally  mandated  open  access  has  operated                                                                    
     successfully for  the last 50  years.  Senate  Bill 113                                                                    
     turns the  system on its head  and allocates groundfish                                                                    
     harvest rights  to persons, vessels,  corporations, co-                                                                    
     ops based on historical catch histories.                                                                                   
                                                                                                                                
     My opposition  centers on three areas:   consolidation,                                                                    
     e.g. pressure  for fewer and  fewer boats and  crews to                                                                    
     process  the  same amount  of  product.   You  hear  of                                                                    
     people  buying  up  share  quota  or  DAP,  or  through                                                                    
     cooperative agreements  whereby fishermen,  in essence,                                                                    
     retire vessels  and only use  a few boats and  crews to                                                                    
     harvest  quota.   Fewer boats,  fewer  crews mean  less                                                                    
     resultant   economic    activity   for    the   coastal                                                                    
     communities which home port these boats.                                                                                   
                                                                                                                                
     One  of the  stated  goals of  this  legislation is  to                                                                    
     prevent  economic   stress  to  those   dependent  upon                                                                    
     fishermen   for   a   livelihood.     Certainly   those                                                                    
     businesses located in communities  such as Kodiak would                                                                    
     qualify for this consideration.  ...                                                                                       
                                                                                                                                
     [Regarding  the two  other areas  of  concern]: one  of                                                                    
     them is resource conservation.   Ninety percent of this                                                                    
     groundfish  is  going  to  be  allocated  to  trawlers.                                                                    
     Currently the  State of Alaska  does not have  any kind                                                                    
     of [an]  observer program  for these  boats.   And it's                                                                    
     impossible for any  of us to really  discuss clearly or                                                                    
     accurately  what the  extent  of  the bycatch  problems                                                                    
     are.    But  clearly  any time  that  you're  going  to                                                                    
     allocate 90  percent of a  resource to this  segment of                                                                    
     fishermen,  that you  ought to  be  talking about  what                                                                    
     some of the problems are with that type of harvesting.                                                                     
                                                                                                                                
MR. LUNDQUIST continued:                                                                                                        
                                                                                                                                
     Third  area of  disagreement: ...  the sponsor  of this                                                                    
     bill has  dropped jig fishermen  out of it.   Currently                                                                    
     they  only harvest  2 percent  of the  groundfish; what                                                                    
     you're doing  is putting unreasonable pressure  on that                                                                    
     segment of fishing for new entrants.                                                                                       
                                                                                                                                
     In conclusion,  I'm against SB  113.  I'd like  for you                                                                    
     to vote against  it.  However, if you're  going to pass                                                                    
     it,  please, we'd  like an  amendment in  the following                                                                    
     areas:    delete  all  references  to  co-ops,  include                                                                    
     language  in the  bill that  would require  100 percent                                                                    
     trawl, State  of Alaska  managed observer  program paid                                                                    
     for by  a tax on  the catch;  the inclusion of  the jig                                                                    
     fishermen  in  SB  113;  and ...  make  this  thing  an                                                                    
     experiment - prohibit the sale  of DAPs for about three                                                                    
     years,  and  have  the  bill  reauthorize  after  three                                                                    
     years.                                                                                                                     
                                                                                                                                
9:53:17 AM                                                                                                                    
                                                                                                                                
DAVE KUBIAK said that he is a jig and longline cod fisherman,                                                                   
and has been fishing out of Kodiak since 1965.  He stated:                                                                      
                                                                                                                                
     I'm opposed to SB 113  for the innumerable reasons that                                                                    
     have come  before me, and  I'm not going to  go through                                                                    
     my laundry  list....  I'd like  to go to a  subissue of                                                                    
     being left out....   Let me speak  plainly: leaving out                                                                    
     the  jig fishermen  in SB  113 is  a kind  of political                                                                    
     terrorism.   Let  me explain.   Many  of us  in coastal                                                                    
     Alaska  see the  open-ended nature  of this  bill as  a                                                                    
     huge  threat.    The   particular  concerns  have  been                                                                    
     pointed  out again  and again,  so  I'll not  reiterate                                                                    
     them  to  you.   But  it  concerns  us enough  that  we                                                                    
     engage, participate in the political  process.  And the                                                                    
     early  part of  these testimonies  occurred during  our                                                                    
     jig  season, which  was  rather  inconvenient, but  you                                                                    
     saw, there were lots of us here testifying.                                                                                
                                                                                                                                
MR. KUBIAK continued:                                                                                                           
                                                                                                                                
     We object  to the  language, we  object to  the design,                                                                    
     and we  object to the  potential of the bill.   Instead                                                                    
     of winning  or losing or  even modifying the  debate on                                                                    
     the issue,  we are simply  left out of  the legislation                                                                    
     entirely.   This is obviously  part of  the realpolitik                                                                    
     designed to wreck  us because it leaves  our fishery as                                                                    
     the  only  open  access  fishery  in  the  Gulf,  which                                                                    
     ultimately results in  ballooning participation and the                                                                    
     crowding out  of legitimate  jig fishers.   It  is much                                                                    
     like  saying that  if you  resist our  assault on  your                                                                    
     fishery,  we will  simply  kill  you off  economically.                                                                    
     Feigning innocence  in one's intent does  not represent                                                                    
     the  true nature  of the  sophisticated politician,  so                                                                    
     let's not pretend.   This is a very dirty  way to treat                                                                    
     the citizenry of the coastal  communities.  It's a real                                                                    
     declaration of  political warfare  on those of  us who,                                                                    
     for  whatever  reason,  choose  to  disagree  with  our                                                                    
     senators or  representatives and  their backers.   This                                                                    
     reminds  me  of the  politics  we  might expect  of  El                                                                    
     Salvador.                                                                                                                  
                                                                                                                                
     I   expect   the   honest  intention   and   forthright                                                                    
     representation of  the whole community will  ... return                                                                    
     us to  the process  by amending SB  113 to  include the                                                                    
     jig fleet  and not relegate  us to be  marginalized out                                                                    
     of our livelihoods for  participating in this important                                                                    
     debate.    If  we  are  included  in  the  legislation,                                                                    
     perhaps  we  can  still  have  some  influence  on  the                                                                    
     ultimate outcome.   If not, then SB 113  in its passage                                                                    
     will  prove  we have  no  reason  to believe  that  the                                                                    
     current political system works for coastal Alaska.                                                                         
                                                                                                                                
     I have two  side comments as well:  Much  has been made                                                                    
     out of public  process.  Being an  open process doesn't                                                                    
     make  it  public.     We  are  busy   with  our  lives;                                                                    
     participation demands  that the process must  always be                                                                    
     local.    And the  other  side  comment  I have  it  to                                                                    
     shortened seasons: [in] 2005  the tack was much smaller                                                                    
     than it  had been in  the past  - how could  the season                                                                    
     not be shorter?                                                                                                            
                                                                                                                                
9:57:12 AM                                                                                                                    
                                                                                                                                
MIKE BOURAY said that he has been in Kodiak since 1979, and he                                                                  
fishes near Kodiak and out west.  He stated:                                                                                    
                                                                                                                                
     I  do  not  believe  in  this  SB  113.    Our  natural                                                                    
     resources should not be owned  or divvied up by anyone.                                                                    
     There  is  a  lot  of concern  about  this  bill,  that                                                                    
     there's nothing set yet  [and] nobody quite understands                                                                    
     what's going to  be the outcome.  There's  a great deal                                                                    
     of  questions  that  need to  be  answered  before  any                                                                    
     decisions can  be made on  this.   It seems to  me that                                                                    
     this SB 113 is pretty much  running hand in hand in the                                                                    
     same way  the crab  rationalization out west  is going,                                                                    
     and there's  a lot of  downsides to that:  these forced                                                                    
     co-ops,  control by  processors, and  individuals being                                                                    
     forced out of the business.   And there is way too much                                                                    
     concern  over  people  losing jobs,  people  having  to                                                                    
     leave town, income  being lost, so I would  like to see                                                                    
     this  SB 113  slowed  down, maybe  turned  over to  the                                                                    
     [House Resources Standing Committee]  and take a change                                                                    
     to study  this bill a  lot more before any  decision is                                                                    
     made on it.                                                                                                                
                                                                                                                                
9:59:01 AM                                                                                                                    
                                                                                                                                
DON GALLAGHER stated:                                                                                                           
                                                                                                                                
     This  is a  huge,  huge  deal going  on  here in  coast                                                                    
     Alaska, and it  really needs to be heard  by the [House                                                                    
     Resources  Standing  Committee];  I don't  see  how  it                                                                    
     can't be. ... This while DAP  program is just wrong.  I                                                                    
     know that SB  113 doesn't exactly say  that that's what                                                                    
     we're going  to have,  ... but I  think that's  the way                                                                    
     they're trying to  go.  And it certainly is  not a very                                                                    
     good  way to  go.   There's better  tools through  gear                                                                    
     restrictions, ...  trip limits, you could  stagger your                                                                    
     openings,  a lot  of things  we could  do to  slow down                                                                    
     these fisheries and create more  jobs for the processor                                                                    
     workers.  But rationalization  and consolidation of the                                                                    
     resource is  not the  way to  go.   As we've  just seen                                                                    
     happen with the crab fishery  out in Dutch Harbor: that                                                                    
     giant  Japanese processor  just  bought  out a  smaller                                                                    
     American processor; many jobs lost.   I don't know what                                                                    
     those processor  workers for  Royal Aleutian  are going                                                                    
     to do....                                                                                                                  
                                                                                                                                
10:00:59 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE ELKINS commented:                                                                                                
                                                                                                                                
     I have a  little bit of a problem with  wanting to send                                                                    
     this to  [the House  Resources Standing Committee].   I                                                                    
     sit on [the House  Resources Standing Committee]; there                                                                    
     are  no  fishermen  on  [that   committee].    We  have                                                                    
     commercial  fishermen  on  the subcommittee.    I  just                                                                    
     think  overall  you'd  get a  better  shake  with  this                                                                    
     subcommittee  than   you  would  in   [House  Resources                                                                    
     Standing  Committee].    We  have  one  packer  on  the                                                                    
     resource  committee,   but  I  find  it   strange  that                                                                    
     everybody thinks it should be in resources.                                                                                
                                                                                                                                
MR. GALLAGHER  responded that  this is  a natural  resource issue                                                               
and so  he thinks it  should go  to the House  Resources Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
CO-CHAIR  THOMAS said  that the  bill is  definitely a  fisheries                                                               
issue, and  that it should  be heard thoroughly in  House Special                                                               
Committee on Fisheries.                                                                                                         
                                                                                                                                
10:02:08 AM                                                                                                                   
                                                                                                                                
CO-CHAIR  LEDOUX  announced  that  she  was  not  closing  public                                                               
testimony.                                                                                                                      
                                                                                                                                
[SB 113 was held over.]                                                                                                         
                                                                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The House  Special Committee on Fisheries  meeting was [recessed]                                                               
at  10:02:26 AM  to  a  call of  the  chair.  [The meeting  never                                                             
reconvened.]                                                                                                                    

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