Legislature(2017 - 2018)GRUENBERG 120

02/21/2017 10:00 AM FISHERIES

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Audio Topic
10:03:57 AM Start
10:04:43 AM Presentation: Kodiak Seafood Marine Science Center
11:00:22 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: AK Resource Consortium; Kodiak TELECONFERENCED
Seafood & Marine Science Center (KSMSC)
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                       February 21, 2017                                                                                        
                           10:03 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Louise Stutes, Chair                                                                                             
Representative Zach Fansler                                                                                                     
Representative Jonathan Kreiss-Tomkins                                                                                          
Representative Geran Tarr                                                                                                       
Representative Mike Chenault                                                                                                    
Representative David Eastman                                                                                                    
Representative Mark Neuman                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATIVE MEMBERS PRESENT                                                                                             
                                                                                                                                
Representative Dan Ortiz                                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION:  KODIAK SEAFOOD MARINE SCIENCE CENTER                                                                             
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JAY STINSON, President                                                                                                          
Alaska Research Consortium (ARC)                                                                                                
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Co-presented the overview on the Kodiak                                                                  
Seafood and Marine Science Center (KSMSC).                                                                                      
                                                                                                                                
SCOTT SMILEY, Retired Director                                                                                                  
Alaska Research Consortium (ARC)                                                                                                
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Co-presented the overview on the Kodiak                                                                  
Seafood and Marine Science Center (KSMSC).                                                                                      
                                                                                                                                
PAULA CULLENBERG, Director                                                                                                      
Alaska Sea Grant                                                                                                                
Co-Director                                                                                                                     
Kodiak Seafood and Marine Science Center (KSMSC)                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Participated in the overview  on the Kodiak                                                             
Seafood and Marine Science Center (KSMSC).                                                                                      
                                                                                                                                
PAT JACOBSON, Member                                                                                                            
Alaska Research Consortium (ARC)                                                                                                
Kodiak, Alaska                                                                                                                  
POSITION  STATEMENT:   Co-presented  the overview  on the  Kodiak                                                             
Seafood and Marine Science Center (KSMSC).                                                                                      
                                                                                                                                
MATTHEW MOIR, Manager                                                                                                           
North Pacific Seafoods                                                                                                          
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during  the overview on the Kodiak                                                             
Seafood and Marine Science Center (KSMSC).                                                                                      
                                                                                                                                
PAUL LUMSDEN, Plant Manager                                                                                                     
Manager, North Pacific Seafoods                                                                                                 
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during  the overview on the Kodiak                                                             
Seafood and Marine Science Center (KSMSC).                                                                                      
                                                                                                                                
DUNCAN FIELDS, Member                                                                                                           
Alaska Research Consortium (ARC)                                                                                                
Kodiak, Alaska,                                                                                                                 
POSITION STATEMENT:  Testified during  the overview on the Kodiak                                                             
Seafood and Marine Science Center (KSMSC).                                                                                      
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
10:03:57 AM                                                                                                                   
                                                                                                                                
CHAIR  LOUISE  STUTES  called  the  House  Special  Committee  on                                                             
Fisheries  meeting  to  order  at  10:03  a.m.    Representatives                                                               
Stutes,  Eastman,  Chenault,  Fansler,  and  Kreiss-Tomkins  were                                                               
present at  the call to  order.  Representatives Tarr  and Neuman                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
^PRESENTATION:  Kodiak Seafood Marine Science Center                                                                            
      PRESENTATION:  Kodiak Seafood Marine Science Center                                                                   
                                                                                                                                
10:04:43 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES announced that the only order of business would be                                                                 
a presentation on the Kodiak Seafood Marine Science Center.                                                                     
                                                                                                                                
10:05:14 AM                                                                                                                   
                                                                                                                                
JAY  STINSON,   President,  Alaska  Research   Consortium  (ARC),                                                               
explained the  genesis of the  Kodiak Seafood and  Marine Science                                                               
Center,  paraphrasing from  a prepared  statement, which  read as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     In 1981  the Alaska  legislature created  the Fisheries                                                                    
     Industrial  Technology  Center, [(FITC)],  now  renamed                                                                    
     the Kodiak Seafood and Marine Science Center.                                                                              
                                                                                                                                
     It was given 5 directives:                                                                                                 
                                                                                                                                
     1.   Provide training opportunities to  the citizens of                                                                    
     the  state  on  the   most  efficient  and  appropriate                                                                    
     technologies    for    harvesting,    processing    and                                                                    
     conservation of Alaska's fisheries resources;                                                                              
                                                                                                                                
     2.   Provide  information and  technical assistance  on                                                                    
     the adaptation of existing and new technologies;                                                                           
                                                                                                                                
     3.  Provide  research  and  development  activities  to                                                                    
     adapt  existing technologies  to  enhance the  economic                                                                    
     viability of the industry;                                                                                                 
                                                                                                                                
     4.    Create new  technologies  that  will enhance  the                                                                    
     effectiveness  of the  fisheries  and provide  economic                                                                    
     benefit to the citizens of the state;                                                                                      
                                                                                                                                
     5.    Encourage  joint projects  between  industry  and                                                                    
     government that will enhance  the productivities of the                                                                    
     industry.                                                                                                                  
                                                                                                                                
     These  directives  are  more critical  for  the  Alaska                                                                    
     fishing industry of today than ever before.                                                                                
                                                                                                                                
     However,  due   to  state  a  University   budget  cuts                                                                    
     [University of  Alaska Fairbanks  (UAF)] has  given the                                                                  
     industry and  the coastal communities of  Alaska notice                                                                  
     of their intent to shut in  the facility!  This will be                                                                  
     a significant blow to the  largest employment sector of                                                                    
     the state.                                                                                                                 
                                                                                                                                
     Seafood and Fisheries  technology has changed immensely                                                                    
     in the  36 years since  the Alaska legislature  saw the                                                                    
     need  and   potential  [to]   bring  Alaska   into  the                                                                    
     forefront of global fisheries.                                                                                             
                                                                                                                                
     Fishermen don't steer by compass these days;                                                                               
                                                                                                                                
     First, they  turn on 4  or 5  or 6 computers  that plot                                                                    
     the course,  chart the  bottoms, report  their position                                                                    
     to  the  [National  Marine Fisheries  Service  (NMFS)],                                                                    
     provide  satellite communications  with the  processing                                                                    
     plant or  home office,  log hold temperatures  and fish                                                                    
     quality assessments, the list goes on.                                                                                     
                                                                                                                                
     For  Alaska   fishermen  now,   the  priority   is  not                                                                    
     developing  technology to  catch fish;  but to  develop                                                                    
     technology  on how  not to  catch  certain fish,  while                                                                  
     improving  the  value  and full  utilization  of  those                                                                    
     species that we target.                                                                                                    
                                                                                                                                
     Seafood process workers  now need to do  more than just                                                                    
     take weights from a scale or  work the slime line.  The                                                                    
     current    generation   of    processing   plants    is                                                                    
     computerized from  the time  the offloading  pump first                                                                    
     goes into the fish hold,  until the finished product is                                                                    
     identified  with  a   computerized  tracking  chip  and                                                                    
     robotically  packaged and  palletized, and  loaded into                                                                    
     the shipping container.                                                                                                    
                                                                                                                                
     Workers need  to be able  to program and  operate fully                                                                    
     automated processing  through-put systems, computerized                                                                    
     freezer systems and robotic packaging equipment.                                                                           
                                                                                                                                
     Regulatory  compliance   and  food  safety   are  huge!                                                                  
     Processing plants  must comply with  [Alaska Department                                                                  
     of Environmental  Conservation (ADEC)], [U.S.  Food and                                                                  
     Drug   Administration   (FDA)],  and   retail   process                                                                  
     auditors, such as the British Retail Consortium.                                                                         
                                                                                                                                
     Quinton Fong,  Brian Himelbloom, and Chris  Sannito are                                                                  
     fully  engaged  and  have  more   work  than  they  can                                                                  
     effectively handle.                                                                                                      
                                                                                                                                
     KSMSC  is the  only state-recognized  Process Authority                                                                    
     in Alaska.                                                                                                                 
                                                                                                                                
     The faculty assists with  [hazard analysis and critical                                                                    
     control     points    (HACCP)]     plans,    marketing,                                                                    
     microbiology, food safety, ...the list goes on.                                                                            
                                                                                                                                
     Last  summer Kodiak  had  a  local Paralytic  Shellfish                                                                    
     Poisoning  incident.   Kodiak Center  faculty has  been                                                                    
     engaged coordinating  information and  public awareness                                                                    
     releases.    She is  also  working  with harmful  algal                                                                    
     blooms and  seafood toxins which affect  nearshore crab                                                                    
     stocks,  marine   mammals,  and   potentially  critical                                                                    
     fisheries resources.                                                                                                       
                                                                                                                                
     1.  Faculty from KSMSC  is engaged with seaweed farming                                                                    
     entrepreneurs   in   business    and   marketing   plan                                                                    
     development  - funded  Sea Grant  aquaculture extension                                                                    
     work.                                                                                                                      
                                                                                                                                
     2.   They  will also  be  working with  local sea  weed                                                                    
     farmers   on   processing    techniques   and   product                                                                    
     development.                                                                                                               
                                                                                                                                
     3.   Contact  has also  been made  with Paul  Anderson,                                                                    
     [University  (U)]  of  Maine  Sea  Grant  Director  for                                                                    
     future  collaboration.   U of  Maine  has received  $24                                                                    
     million for  their [EPSCoR, the Established  Program to                                                                    
     Stimulate   Competitive  Research,   a  federal   grant                                                                    
     program led  by the National Science  Foundation (NSF)]                                                                    
     program   to   develop   the   Sustainable   Ecological                                                                    
     Aquaculture Network  (SEANET) to gain  understanding of                                                                    
     how    social-ecological    systems    interact    with                                                                    
     sustainable    ecological   aquaculture    in   coastal                                                                    
     communities and ecosystems.                                                                                                
                                                                                                                                
     The  State  of  Alaska   in  conjunction  with  [Alaska                                                                    
     Fisheries Development Foundation  (AFDF)] is developing                                                                    
     a  Shellfish Mariculture  Program.   The Kodiak  Center                                                                    
     has a long history of  collaborative work with AFDF and                                                                    
     [Alaska Department of Fish &  Game (ADF&G)] and is well                                                                    
     positioned  to continue  this type  of work.   We  have                                                                    
     access to filtered and unfiltered  saltwater as well as                                                                    
     an onsite seawater tank.                                                                                                   
                                                                                                                                
     However, KSMSC  is now  operating below  human critical                                                                  
     mass.                                                                                                                    
                                                                                                                                
     The  number of  personnel here  has been  significantly                                                                    
     reduced:  Scott Smiley, Chuck  Crap, and Kate Wynn have                                                                    
     retired without  replacement.   Dr. Foy,  Dr. Sathival,                                                                    
     Dr.  Buck,  Dr. Olivera,  Dr.  Choudhury  all moved  on                                                                    
     without replacement.                                                                                                       
                                                                                                                                
     Associated  personnel like  Jerry  Babbit, who  retired                                                                    
     from  NMFS  and Peter  Bechtel  whose  ARS program  was                                                                    
     curtailed are both greatly missed.                                                                                         
                                                                                                                                
     In August of  2015, Dr. Joan Braddock,  interim Dean of                                                                    
     [School  of  Fisheries   and  Ocean  Sciences  (SFOS)],                                                                    
     informed  the SFOS  Advisory Committee  that Chancellor                                                                    
     Rogers had initiated  discussions for possible transfer                                                                    
     of this  building and the  potential closure  of Kodiak                                                                    
     Center.                                                                                                                    
                                                                                                                                
     Now,  the University  of Alaska  is facing  even deeper                                                                
     budget cuts.                                                                                                               
                                                                                                                                
     The  University  of  Alaska Fairbanks  has  released  a                                                                    
     Request  for Information  for the  process of  learning                                                                  
     what options  may be available for  a non-University of                                                                    
     Alaska organization  to manage  and operate  the Kodiak                                                                    
     Seafood and Marine Science Center.                                                                                         
                                                                                                                                
     A group of concerned folks,  many of whom are here now,                                                                    
     have  been  discussing  options   in  response  to  the                                                                    
     University  of Alaska's  Request for  Information.   We                                                                    
     have  filed a  research  and education  501c3 with  the                                                                    
     State of Alaska with the  idea of developing a Private-                                                                    
     Nonprofit/University partnership.                                                                                          
                                                                                                                                
     The name  of the new  501c3 organization is  the Alaska                                                                  
     Research Consortium (ARC).                                                                                               
                                                                                                                                
     The intent  is to develop a  Public Private Partnership                                                                    
     that  can better  assess and  respond to  the workforce                                                                    
     training  and education  needs  of  the Alaska  seafood                                                                    
     industry in  a cost  effective manner, and  to continue                                                                    
     to  engage  in  related applied  fisheries  and  marine                                                                    
     science  at   this  facility   as  directed   by  state                                                                    
     statutes.                                                                                                                  
                                                                                                                                
     There are several conceptual strategies at this point.                                                                     
                                                                                                                                
     But  it  is  critical  that we  build  a  research  and                                                                    
     service model  that supports the needs  of the industry                                                                    
     while  maintaining  the   training,  outreach,  applied                                                                    
     research and education Mission of  the Alaska Sea Grant                                                                    
     and Marine Advisory Programs.                                                                                              
                                                                                                                                
     In  order  to  utilize directed  Alaska  Education  Tax                                                                    
     Credits,  we  need to  be  partnered  with a  qualified                                                                    
     educational   facility.      Sea  Grant   meets   those                                                                    
     requirements.                                                                                                              
                                                                                                                                
     I  envision  The  Kodiak  Seafood  and  Marine  Science                                                                  
     Center  as  a private-nonprofit/University  partnership                                                                
     that continues to meet the  current and future needs of                                                                    
     the Alaska Fishing Industry.                                                                                               
                                                                                                                                
     There  has  been  significant dialogue  concerning  the                                                                    
     shift in needs to  more certificate training as opposed                                                                    
     to the classic  academic degree track.   The concept of                                                                    
     modular training certificate programs  that can be used                                                                  
     for  accreditation with  high school  or [Associate  of                                                                  
     Arts  (AA)]   degrees  would  be  more   responsive  to                                                                  
     Alaska's work-force development requirements.                                                                              
                                                                                                                                
     Partnerships    and    collaboration    with    coastal                                                                    
     communities and  Native Organizations  need to  be part                                                                    
     of this strategic plan.                                                                                                    
                                                                                                                                
10:12:56 AM                                                                                                                   
                                                                                                                                
SCOTT  SMILEY,  Retired   Director,  Alaska  Research  Consortium                                                               
(ARC), provided  a historical review  of the  center paraphrasing                                                               
from  a  prepared  statement, which  read  as  follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     The  Fishery Industrial  technology  Center (FITC)  was                                                                    
     the vision  of a group  of coastal Alaskan  citizens in                                                                    
     the  '70s.    To  insure the  long  term  viability  of                                                                    
     commercial,  sports and  subsistence  fishing in  their                                                                    
     communities, they  developed a plan and  petitioned the                                                                    
     Alaska Legislature  for assistance.  In  1981, FITC was                                                                    
     established with  its mission and functions  encoded in                                                                    
     State  Statute  (Title  16,  Chapter  52).    FITC  was                                                                    
     located in  Kodiak because  fish landed  there included                                                                    
     80% of  the species  harvested in  the eastern  Gulf of                                                                    
     Alaska and 80% of those caught in the Bering Sea.                                                                          
                                                                                                                                
     FITC  and  Sea  Grant's  Marine  Advisory  Program  was                                                                    
     lodged  within the  Community  College Rural  Education                                                                    
     and Extension  [(CCREE)] Division of the  University of                                                                    
     Alaska.   Community  Colleges  specialized in  granting                                                                    
     certificates  and Associate  of Arts  (AA) or  two year                                                                    
     degrees.    In  1987,  FITC  and  the  Marine  Advisory                                                                    
     Program (MAP) were moved to  UAF's newly formed, School                                                                    
     of  Fisheries   and  Ocean   Sciences  (SFOS).     SFOS                                                                    
     primarily  awarded   graduate  degrees,   precious  few                                                                    
     Bachelor degrees  and no certificate  or AA  degrees at                                                                    
     all.    This is  important  because  while the  seafood                                                                    
     industry in  Alaska might  staff their  technical plant                                                                    
     positions with employees having  certificates or AA and                                                                    
     Bachelor  degrees,   their  need  for   employees  with                                                                    
     graduate degrees was vanishingly small.                                                                                    
                                                                                                                                
     Cultural  conflicts were  present between  the Academic                                                                    
     Research  Focus   of  SFOS  faculty  and   the  Applied                                                                    
     Industrial  Focus  of  FITC faculty.    Such  conflicts                                                                    
     between Applied  and Academic units  are well  known as                                                                    
     underlined by the presence, in  many states, of both an                                                                    
     Academic  Research University  and  a separate  Applied                                                                    
     Research  University,  such  as in  Colorado  with  the                                                                    
     Academic  Research oriented  University of  Colorado in                                                                    
     Boulder  and Applied  Science  oriented Colorado  State                                                                    
     University in  Fort Collins.   The  costs to  field two                                                                    
     separate  University systems  speak  to  the degree  of                                                                    
     conflict  between  cultures  of  Academic  and  Applied                                                                    
     institutions.                                                                                                              
                                                                                                                                
     From 1981 until 1991 FITC  was located in rented office                                                                    
     space in  Kodiak and  on Kodiak's  Coast Guard  Base in                                                                    
     shared  laboratory space.   In  1991,  the Alfred  Owen                                                                    
     Building  on  Near  Island  in  Kodiak  was  completed,                                                                    
     including  its 5,000  sq. ft.  pilot plant,  with funds                                                                    
     drawn from the State.                                                                                                      
                                                                                                                                
     In aggregate, there  have been a total  of 13 [fulltime                                                                    
     employees (FTEs)] Faculty and  Staff positions at FITC.                                                                    
     Faculty numbers  grew with the conversion  of technical                                                                    
     to faculty  positions and the  award of  two University                                                                    
     Presidential  appointments.    However,  commencing  in                                                                    
     about 2005,  and continuing through the  name change in                                                                    
     2011 the number has been  reduced so that only 1.35 non                                                                    
     MAP faculty and  staff FTEs remain.  This  amounts to a                                                                    
     subtraction of  11.65 positions.  Given  this, it seems                                                                    
     unfair   to   condemn  Fish   Tech   for   a  lack   of                                                                    
     productivity.                                                                                                              
                                                                                                                                
     Alaska's  Seafood Industry  is  the largest  employment                                                                    
     sector  in the  state.   Importantly, it  includes many                                                                    
     entry level  jobs where new workers  can increase their                                                                    
     earning  power through  education.   For  many, if  not                                                                    
     most, coastal Alaskan  communities the Seafood Industry                                                                    
     is the only economic horse in  town.  The role of FITC,                                                                    
     as   originally  configured,   was   to  provide   this                                                                    
     employment   sector   with   education,   service   and                                                                    
     research, helping it to face  the new challenges of the                                                                    
     future.    That  mission  is why  FITC  was  originally                                                                    
     placed  within CCREE.   To  allow it  to return  to its                                                                    
     applied roots will  benefit coastal Alaskan communities                                                                    
     now  and  into the  future.    In  this context  it  is                                                                    
     pertinent  to  remember  that something  above  80%  of                                                                    
     Alaska's  population  lives  within  20  miles  of  the                                                                    
     ocean.                                                                                                                     
                                                                                                                                
     The  Alaska  State   Legislature  created  the  Fishery                                                                    
     Industrial  Technology  Center  and  provided  for  its                                                                    
     future.    Since  the  University's  reorganization  in                                                                    
     1987, FITC  has seriously  atrophied.   We now  have an                                                                    
     opportunity to  change this.   We believe  that through                                                                    
     Private  Public   partnerships,  we  can   fulfill  the                                                                    
     ongoing  needs of  Coastal Alaska  seen encoded  in the                                                                    
     State Statute.                                                                                                             
                                                                                                                                
     I want  to give you  a brief  overview of the  kinds of                                                                    
     research  projects that  have been  completed at  FITC.                                                                    
     You have  a list  of the titles  of about  200 research                                                                    
     projects  completed  between  1986  and  2008.    These                                                                    
     projects were funded  to the tune of  about $25 million                                                                    
     dollars   through   2    divisions   of   USDA,   their                                                                    
     Agricultural  Research  Service and  their  Cooperative                                                                    
     State Research Education and Extension Service.                                                                            
                                                                                                                                
10:18:06 AM                                                                                                                   
                                                                                                                                
MR. SMILEY  added that in  the last 20 years,  research endeavors                                                               
at the center  have been productive.  He offered  two examples of                                                               
outcomes:    the development  of  surimi;  and the  waste  stream                                                               
associated  with   processing  fish,  about  80   percent,  being                                                               
converted into  value added  products, with  the side  benefit of                                                               
minimizing the  waste being dumped  into the ocean.   Finally, he                                                               
said:                                                                                                                           
                                                                                                                                
     Given  our expertise,  our  equipment,  and the  Alfred                                                                    
     Owen  facility, in  addition to  fish products  we have                                                                    
     assisted the Reindeer project on the Seward Peninsula,                                                                     
      worked with producers of a rhubarb juice, and helped                                                                      
     some folks make birch syrup.                                                                                               
                                                                                                                                
10:22:04 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 10:22 a.m. to 10:23 a.m.                                                                     
                                                                                                                                
10:23:08 AM                                                                                                                   
                                                                                                                                
PAULA  CULLENBERG,  Director,   Alaska  Sea  Grant,  Co-Director,                                                               
Kodiak  Seafood  and  Marine Science  Center  (KSMSC),  said  the                                                               
Alaska  Sea Grant  program is  one of  33 national  programs, and                                                               
represents  a  45  year partnership  between  the  University  of                                                               
Alaska   (UA)   and   the  National   Oceanic   and   Atmospheric                                                               
Administration  (NOAA).    With   a  presence  in  eight  coastal                                                               
communities,   the   program   funds  a   number   of   statewide                                                               
undertakings,  including:     research,  K-12  marine  education,                                                               
hosting  the  annual Alaska  Young  Fisherman's  Summit, and  the                                                               
Marine  Advisory program.   She  said, at  one time,  the program                                                               
faculty was comprised of 10-11  members; however, today there are                                                               
only 4, including  a general coastal marine advisory  agent and 3                                                               
seafood specialist  for marketing, technology,  and microbiology.                                                               
The  program  retains a  staff  and  graduate students  are  also                                                               
present  at the  center.   Directing attention  to the  committee                                                               
packet, she pointed out the  document titled, "Kodiak Seafood and                                                               
Marine  Science Center  University  of  Alaska Fairbanks,  Annual                                                               
Activities Report FY2016 (July 1,  2015-June 30, 2016)," which is                                                               
the  executive  summary of  the  past  year's activities  at  the                                                               
center.    It  also  includes the  sources  of  external  funding                                                               
received  by KSMSC  for the  industry  funded research  projects.                                                               
The  building also  hosts work  force training  programs and,  in                                                               
2016, over 250  people attended a large variety of  courses.  The                                                               
center  is unique,  as it's  the only  seafood processing,  pilot                                                               
plant  in   the  state.    It   houses  state-of-the-art  seafood                                                               
processing  equipment,   as  well   as  five   laboratories,  and                                                               
classroom space.   In proximity to the center  are apartments for                                                               
housing, the NOAA  laboratory, and the Alaska  Department of Fish                                                               
& Game  (ADF&G) building.   She  said it  offers a  compliment of                                                               
federal,  state,  and  university  opportunities  that  otherwise                                                               
would not be available.   The association/partnerships enjoyed by                                                               
the  center,  include:   Ocean  Beauty  Seafoods, Alaska  Seafood                                                               
Marketing   Institute   (ASMI),   Department   of   Environmental                                                               
Conservation (DEC),  and Trident  Seafoods.  Finally,  she stated                                                               
support  for continuing  KSMSC  as  a public/private  partnership                                                               
facility.                                                                                                                       
                                                                                                                                
10:31:13 AM                                                                                                                   
                                                                                                                                
PAT   JACOBSON,  Member,   Alaska   Research  Consortium   (ARC),                                                               
explained the  genesis of the  Kodiak Seafood and  Marine Science                                                               
Center,  paraphrasing from  a prepared  statement, which  read as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     ARC,   the   Alaska   Research   Consortium   that   we                                                                    
     established,  is  really  an illustrious  group  and  I                                                                    
     wanted   to  flesh   out,  just   a  little   bit,  the                                                                    
     composition of that group.                                                                                                 
                                                                                                                                
     Jay Stinson,  Chair KSMSC  Policy Council  and longtime                                                                    
     fisherman and he's also the President of ARC                                                                               
                                                                                                                                
     Alan   Austerman,   is   a  former   Ak   State   House                                                                    
     Representative                                                                                                             
                                                                                                                                
     Dr.  Larry  Ledoux,  is a  former  Ak  Commissioner  of                                                                    
     Education                                                                                                                  
                                                                                                                                
     Dr. Scott  Smiley, former  director of  FITC, Fisheries                                                                    
     Industrial Technology Center                                                                                               
                                                                                                                                
     Duncan Fields,  President KIB School Board,  lawyer and                                                                    
     longtime  fisherman, former  ASMI board  member, former                                                                    
     North Pacific Fisheries Management Council member                                                                          
                                                                                                                                
     Jeff Stephan,  Chair of the  Alaska Sea  Grant Advisory                                                                    
     Committee,  currently on  the  North Pacific  Fisheries                                                                    
     Management Advisory  Panel, and a former  member of the                                                                    
     North Pacific Fisheries Management Council                                                                                 
                                                                                                                                
     Matt Moir, Manager North Pacific Seafoods Kodiak Plant                                                                     
                                                                                                                                
     Paul Lumsden, Manager Trident Seafoods Kodiak                                                                              
                                                                                                                                
     All of us on this  committee have very busy lives. Some                                                                    
     of us  are retired, but  some also have jobs.  It's not                                                                    
     like  we  were  looking  for   a  new  project  or  for                                                                    
     something  to  do.   Nonetheless,  when  we  heard  the                                                                    
     intent  was to  close  the facility,  we were  shocked,                                                                    
     quite frankly, since  it IS in AK Statute  and has done                                                                    
     some really great work. At  the same time we understood                                                                    
     that the  University has  had significant  budget cuts.                                                                    
     So, we  kicked into  gear to try  to help  the facility                                                                    
     survive. We are dedicated  and have contributed a great                                                                    
     deal of  time (and  as in  the case  of this  trip down                                                                    
     here, on our own dime)  in this effort and we've worked                                                                    
     hard on this  for over a year now, because  we KNOW how                                                                    
     important  it has  been,  is  now and  will  be in  the                                                                    
     future,   not  just   to  Kodiak,   I  emphasize,   but                                                                    
     statewide. Thank you very much.                                                                                            
                                                                                                                                
10:34:33 AM                                                                                                                   
                                                                                                                                
MATTHEW MOIR,  Manager, North Pacific  Seafoods, said  the center                                                               
is integral for  maintaining a trained workforce  and keeping the                                                               
seafood  industry  strong.   Closure  of  the facility  would  be                                                               
counterproductive  and  detrimental  to the  coastal  communities                                                               
that rely on  keeping pace with the  evolving technology required                                                               
by today's fishing industry.                                                                                                    
                                                                                                                                
10:37:24 AM                                                                                                                   
                                                                                                                                
PAUL LUMSDEN,  Plant Manager, North  Pacific Seafoods,  cited the                                                               
automation and technical programing  that is necessary to operate                                                               
the  fish  processing equipment  used  today.  The center  trains                                                               
Alaskans  to  be  employed  in these  high  paying  jobs,  versus                                                               
reliance on  hiring help from Outside.   He pointed out  that the                                                               
center doesn't only serve the  region, and said, "What's good for                                                               
Kodiak is good for [all of Alaska]."                                                                                            
                                                                                                                                
10:39:45 AM                                                                                                                   
                                                                                                                                
DUNCAN   FIELDS,  Member,   Alaska  Research   Consortium  (ARC),                                                               
provided  an anecdote  of the  type  of service  that the  center                                                               
provides   and  the   type  of   questions   that  the   research                                                               
capabilities of  the facility can  address. He stressed  that the                                                               
loss  of the  facility would  leave people  in the  industry with                                                               
nowhere to go to get answers.   The KSMSC provides an opportunity                                                               
for applied science  to occur within the state,  he stressed, and                                                               
directed  attention  to  the committee  packet  and  the  handout                                                               
titled,  "Alaska House  of  Representatives Fisheries  Committee,                                                               
Resolution No.  2017-."  He  said funds are not  being requested,                                                               
but  rather the  adoption of  the  draft resolution  to show  the                                                               
committee's  support   for  the  continuance  of   this  valuable                                                               
facility.  He  said the resolution is based  on the legislature's                                                               
original   intent   as   expressed  in   1981,   and   subsequent                                                               
appropriations, for the importance of  the ongoing mission of the                                                               
facility  to provide  training,  technical assistance,  research,                                                               
development,   the  creation   of  new   technologies  for   food                                                               
processing, and to encourage joint  projects and research between                                                               
the  academic community  and  seafood industry.    The ask  being                                                               
posed to the committee, is to  pass or recommend a resolution for                                                               
consideration of the full legislature.                                                                                          
                                                                                                                                
10:42:35 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES opined that there is  not a community in Alaska that                                                               
is not touched in some way by Alaska's fishing industry.                                                                        
                                                                                                                                
10:43:17 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE NEUMAN asked an outline of the funding structure.                                                                
                                                                                                                                
MS. CULLENBERG offered  to provide the complete  annual report to                                                               
the committee.  She said the  building is owned by the University                                                               
of   Alaska,   with  no   building   debt   owed;  however,   the                                                               
operating/maintenance  cost   last  year   totaled  approximately                                                               
$299,000.  Other  costs include faculty and staff  salaries.  She                                                               
directed attention to the  previously mentioned executive summary                                                               
to point  out the  corporate funding and  grant sources  named in                                                               
the document.                                                                                                                   
                                                                                                                                
10:45:36 AM                                                                                                                   
                                                                                                                                
CHAIR  STUTES  asked whether  dialogue  has  been exchanged  with                                                               
Native tribes.                                                                                                                  
                                                                                                                                
MR.  FIELDS responded  yes, and  reported  that the  interactions                                                               
have  solidified  the support  for  the  facility by  the  Native                                                               
populations on Kodiak Island and beyond.                                                                                        
                                                                                                                                
10:46:51 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  NEUMAN  asked  about  the  level  of  effort  put                                                               
towards encouraging industry to  invest utilizing the educational                                                               
credit program.                                                                                                                 
                                                                                                                                
MS. CULLENBERG  responded that every  course carries a  fee, such                                                               
as  the 80  hour Alaska  Seafood processing  Leadership Institute                                                               
for  $2,500.   The cost  is supplemented  with federal  Sea Grant                                                               
funds and UAA Technical Vocation  funds.  However, there has been                                                               
zero pushback from industry on charging for classes.                                                                            
                                                                                                                                
REPRESENTATIVE NEUMAN  said the  educational credits  fund allows                                                               
industry  to invest  in training  and  receive corporate  credits                                                               
from the state.  If this  is not being implemented, he offered to                                                               
assist in "driving that boat."                                                                                                  
                                                                                                                                
MS.  CULLENBERG  said  that  several  entities,  such  as  Icicle                                                               
Seafoods  and  the   Pollock  Conservation  Cooperative  Research                                                               
Center (PCCRC),  have directed funds  through the  university and                                                               
received  the  tax  credits,  indicating   an  awareness  of  the                                                               
program.                                                                                                                        
                                                                                                                                
REPRESENTATIVE NEUMAN  asked whether  there have been  changes in                                                               
regulations that have caused increased costs.                                                                                   
                                                                                                                                
MR. FIELDS  answered that the  third party monitoring  presents a                                                               
cost  to the  industry;  perhaps not  a  direct regulatory  cost.                                                               
Budget  cuts to  ADF&G  has eliminated  a  significant number  of                                                               
weirs  and  stream  surveys,  causing   a  reduction  in  fishing                                                               
activity.                                                                                                                       
                                                                                                                                
REPRESENTATIVE NEUMAN  suggested that  costs involved  in meeting                                                               
regulatory  requirements   might  be  minimized   through  reform                                                               
legislation.                                                                                                                    
                                                                                                                                
10:52:13 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES asked  about the reference made  regarding a statute                                                               
requiring funding through the University of Alaska, Fairbanks.                                                                  
                                                                                                                                
MS. CULLENBERG  said there was an  initial authorizing allocation                                                               
from  the state  legislature  and dedicated  federal funding  was                                                               
received until about six years ago.                                                                                             
                                                                                                                                
MR. FIELDS  directed attention  to the  committee packet  and the                                                               
document  from  Legislative  Research Services,  titled,  "Kodiak                                                               
Seafood  and Marine  Science  Center,  Tim Spengler,  Legislative                                                               
Analyst."   He  said it's  a response  to a  number of  questions                                                               
posed  by  Senator  Gary Stevens  and  contains  the  legislative                                                               
intent/mandates,  which  continue in  force  despite  the UA,  as                                                               
owner of the building, stating imminent closure of the facility.                                                                
                                                                                                                                
10:54:18 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   KREISS-TOMKINS   noted   that  the   center   is                                                               
collaborating on a project with  DEC for processing seal oil, and                                                               
asked about the  state agencies approach for  regulating the ways                                                               
in which people might consume seal oil.                                                                                         
                                                                                                                                
MS. CULLENBERG explained  that seafood is regulated  by a measure                                                               
called  hazard analysis  critical control  points (HACCP),  which                                                               
requires a  specific plan.   Seal oil  lacked a HACCP  plan, when                                                               
the senior  center in Kotzebue  received requests  from residents                                                               
to  be  able to  enjoy  traditional  seal  oil.   The  department                                                               
considers the center  to be a process authority,  hence it looked                                                               
to KSMSC  for expertise  to solve  the issue  and develop  a safe                                                               
processing  plan.   She  pointed out  that,  as mentioned,  other                                                               
items outside of seafood are studied at the center.                                                                             
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS   reported  on   an  entrepreneur,                                                               
processing  kelp  and  seaweed   in  southeast,  cited  KSMSC  as                                                               
integral to  analyzing the potential  of the products that  he is                                                               
developing.                                                                                                                     
                                                                                                                                
10:58:03 AM                                                                                                                   
                                                                                                                                
CHAIR  STUTES directed  attention  to the  packet  and the  draft                                                               
resolution and said:                                                                                                            
                                                                                                                                
     Members have a proposed  resolution at the beginning of                                                                    
     their committee packets, I would  entertain a motion to                                                                    
     draft  a   similar  resolution  and  introduce   it  as                                                                    
     legislation on  behalf of the [House  Special Committee                                                                    
     on Fisheries].                                                                                                             
                                                                                                                                
10:58:22 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE FANSLER responded:                                                                                               
                                                                                                                                
     I  move that  we  accept the  draft resolution,  titled                                                                    
     "Draft  Resolution  proposed  by  the  Alaska  Resource                                                                    
     Consortium"  and   introduce  similar   legislation  on                                                                    
     behalf of the [House Special Committee on Fisheries].                                                                      
                                                                                                                                
CHAIR STUTES objected for discussion                                                                                            
                                                                                                                                
10:58:41 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  NEUMAN  noted  that   the  resolution  calls  for                                                               
committee  support of  a bill  to  be presented  sometime in  the                                                               
future, and  established that it  would be similar to  a document                                                               
in the committee packet.                                                                                                        
                                                                                                                                
11:00:04 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES  removed her objection.   Without further objection,                                                               
she announced that a resolution would be drafted.                                                                               
                                                                                                                                
11:00:22 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES thanked the participants and announced the next                                                                    
meeting.                                                                                                                        
                                                                                                                                
CHAIR STUTES ADJOURNMENT                                                                                                      
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Fisheries meeting was adjourned at 11:00                                                                   
a.m.                                                                                                                            

Document Name Date/Time Subjects
Draft Resolution proposed by ARC.pdf HFSH 2/21/2017 10:00:00 AM
Alaska Resource Consortium, Kodiak Seafood Marine Science Center
Stinson ARC Testimony.pdf HFSH 2/21/2017 10:00:00 AM
Alaska Resource Consortium, Kodiak Seafood Marine Science Center
Economic Value of the Alaska Seafood Industry Excerpt 2013.pdf HFSH 2/21/2017 10:00:00 AM
Alaska Resource Consortium, Kodiak Seafood Marine Science Center
Kodiak Seafood and Marine Science Center FY16 Annual Report .pdf HFSH 2/21/2017 10:00:00 AM
Alaska Resource Consortium, Kodiak Seafood Marine Science Center
FITC Enabling Legislation 1981.pdf HFSH 2/21/2017 10:00:00 AM
Alaska Resource Consortium, Kodiak Seafood Marine Science Center
APICDA letter of support for KSMSC.pdf HFSH 2/21/2017 10:00:00 AM
Alaska Resource Consortium, Kodiak Seafood Marine Science Center
AML resolution KSMSC.pdf HFSH 2/21/2017 10:00:00 AM
Alaska Resource Consortium, Kodiak Seafood Marine Science Center
Leg Research FITC 12 2 16.pdf HFSH 2/21/2017 10:00:00 AM
FITC KSMSC Alaska Resource Consortium