Legislature(1993 - 1994)
02/18/1994 08:30 AM House FSH
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE SPECIAL COMMITTEE ON FISHERIES
February 18, 1994
8:30 a.m.
MEMBERS PRESENT
Representative Carl E. Moses, Chair
Representative Harley Olberg, Vice Chair
Representative Irene Nicholia
MEMBERS ABSENT
Representative Cliff Davidson
Representative Gail Phillips
COMMITTEE CALENDAR
*HB 448: "An Act relating to waste and use of salmon
and parts of salmon; relating to permits
for and operation of a salmon hatchery;
and providing for an effective date."
ADOPTED CSHB 448(FSH) AND MOVED OUT OF
COMMITTEE WITH INDIVIDUAL RECOMMENDATIONS
(* First Public Hearing)
WITNESS REGISTER
GERON BRUCE, Legislative Liaison
Department of Fish and Game
P.O. Box 25526
Juneau, Alaska 99802
POSITION STATEMENT: Gave sponsor statement for HB 448.
HEATHER MCCARTY, Marketing Manager
Prince William Sound
Aquaculture Corporation
P.O. Box 1110
Cordova, Alaska 99574
POSITION STATEMENT: Testified in support of the proposed
committee substitute for HB 448.
TOM MEARS, Executive Director
Cook Inlet Aquaculture Association
HC 2, Box 849
Soldotna, Alaska 99669
POSITION STATEMENT: Testified in support of the proposed
committee substitute for HB 448.
RICHARD ANDREW, Commercial Fisherman
P.O. Box 7211
Ketchikan, Alaska 99901
POSITION STATEMENT: Testified in support of the proposed
committee substitute for HB 448.
KENNETH DUCKETT, Gillnetter
P.O. Box 3178
Ketchikan, Alaska 99901
POSITION STATEMENT: Testified in support of the proposed
committee substitute for HB 448.
BILL HOLLORAN, Production Manager
Southern Southeast Regional
Aquaculture Association
2721 Tongass
Ketchikan, Alaska 99901
POSITION STATEMENT: Testified in support of the proposed
committee substitute for HB 448.
PETE ESQUIRO, General Manager
Northern Southeast Regional
Aquaculture Association
1308 Sawmill Creek Road
Sitka, Alaska 99835
POSITION STATEMENT: Testified in support of the proposed
committee substitute for HB 448.
DAVE COBB, Business Manager
Valdez Fisheries Development Association
Box 125
Valdez, Alaska 99696
POSITION STATEMENT: Testified in support of the proposed
committee substitute for HB 448.
KEVIN MCDOUGALL, Fisherman
Box 714
Douglas, Alaska 99824
POSITION STATEMENT: Testified in support of the proposed
committee substitute for HB 448.
DAVID BRAY, Gillnetter
7279 Tongass Avenue
Ketchikan, Alaska 99901
POSITION STATEMENT: Testified in support of the proposed
committee substitute for HB 448.
JERRY MCCUNE, President
United Fishermen of Alaska
211 Fourth Street, Suite 112
Juneau, Alaska 99801
POSITION STATEMENT: Testified in support of the proposed
committee substitute for HB 448.
PREVIOUS ACTION
BILL: HB 448
SHORT TITLE: WASTE & USE OF SALMON; HATCHERIES
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
JRN-DATE JRN-PG ACTION
02/04/94 2268 (H) READ THE FIRST TIME/REFERRAL(S)
02/04/94 2269 (H) FSH, RESOURCES, JUDICIARY
02/04/94 2269 (H) -ZERO FISCAL NOTE (F&G) 2/4/94
02/04/94 2269 (H) GOVERNOR'S TRANSMITTAL LETTER
02/18/94 (H) FSH AT 08:30 AM CAPITOL 17
ACTION NARRATIVE
TAPE 94-8, SIDE A
Number 001
CHAIRMAN CARL MOSES called the House Special Committee on
Fisheries meeting to order at 8:48 a.m. He noted members in
attendance.
HB 448 - WASTE & USE OF SALMON; HATCHERIES
CHAIRMAN MOSES announced the only order of business would be
HB 448, "An Act relating to waste and use of salmon and
parts of salmon; relating to permits for and operation of a
salmon hatchery; and providing for an effective date." He
noted the bill was introduced at the request of the
Governor.
GERON BRUCE, LEGISLATIVE LIAISON, DEPARTMENT OF FISH AND
GAME, said the legislation addresses the issue of trying to
get the most value from Alaska's returning hatchery fish.
He explained the hatcheries are sited and permitted in such
a fashion that a majority of the fish they produce are
harvested in the common property fisheries. However, in
order to provide brood stock to the hatcheries so they may
continue production to provide cost recovery to pay for the
hatchery operations, and to protect the smaller wild stocks,
a portion of the return cannot be harvested in the common
property fishery. It is harvested in the terminal area.
MR. BRUCE stated for the most part, the fish that are
harvested for cost recovery purposes in the terminal area
are acceptable quality fish. However, there are
circumstances and conditions which result in a portion of
those runs deteriorating to the point at which the flesh is
no longer suitable for human consumption. There isn't a
market for the carcasses and, as a result, a number of fish
aren't unutilized. These fish contain roe which still does
have considerable value.
MR. BRUCE explained the bill addresses a situation that
developed in Prince William Sound in 1991, where a very
large return of pink salmon did come back to the Sound, but
because of weak wild stocks, the late entry pattern of the
fish and the fact that they arrived in a very big rush, the
harvesters in the processing industry were not able to deal
with the bulk of fish arriving. As a result, a number of
fish couldn't be utilized and these fish, three million
pounds, were seined, put on tenders and taken to deep water
and disposed of. He said if HB 448 had been in effect, the
roe would have been salvaged from those fish which would
have paid the disposal costs and may have yielded some
revenue to the hatchery.
MR. BRUCE said three conditions would have to be met before
the harvest could take place: 1. The fish would have to be
from a hatchery; 2. The fish would have had to return and
be in a terminal harvest area; and 3. A determination would
have to be made by the commissioner of the Department of
Fish and Game that these fish were unsuitable for human
consumption.
MR. BRUCE said the legislation provides for a permit system
for the harvesting of the fish. He said the department
wants to be careful that only hatchery fish from designated
areas are harvested in this manner. There would be a permit
system in which there would have to be a request to the
commissioner to declare fish, in certain terminal locations,
to be in a condition to where only the roe was of value.
Under regulations, certain requirements must be met by
hatcheries or fishermen that participated in harvest in
those terminal areas. They would have to register, and
supply information regarding the number of fish and the
pounds of roe they harvested.
MR. BRUCE said that under the permit system and regulations,
the department would have the authority to require
additional stipulations in order to make sure the harvest is
directed only at the fish they think it should be directed
at.
MR. BRUCE referred to the value of roe and said the farmed
industry does not produce marketable roe as a by-product.
Fish in farmed operations are harvested before they are
sexually mature. There are hatcheries that continue the
production, but very little of that egg production gets into
the market.
Number 149
MR. BRUCE explained that the value of frozen red salmon in
1989 was $640 million, the value of salmon roe was $76
million. In 1990, the value of frozen red salmon was $657
million, and $86 million for roe. In 1991, the value of
frozen red salmon dropped to $354 million, but the value of
roe continued to increase to $91.8 million. In 1992, the
value of the red salmon was $765 million, and frozen roe
continued to rise to $114 million. In 1993, frozen red
salmon was worth $627 million, and roe was worth $177
million.
MR. BRUCE said it is the department's view that the
legislation would result in a relatively small portion of
the returns being utilized. In the case of some of the
hatcheries and in the situation of the difficult financial
conditions facing the salmon industry, if a few more million
dollars can be earned out of some fish that we currently
aren't getting any value out of, it would be a benefit to
the state.
MR. BRUCE noted he had provided the committee with the
Alaska Seafood Marketing Institute (ASMI) color evaluation
guide for Pacific salmon.
Number 189
REPRESENTATIVE IRENE NICHOLAI asked why the proposal didn't
go before the Board of Fisheries. MR. BRUCE said the bill
requires the statute be changed and the board doesn't have
that authority.
Number 196
HEATHER MCCARTY, MARKETING MANAGER, PRINCE WILLIAM SOUND
AQUACULTURE CORPORATION, testified via teleconference from
Cordova. She explained the corporation consists of twelve
hatcheries in Prince William Sound and Cordova. She noted
she is also the Public Relations Manager for the
corporation. Ms. McCarty said her organization supports HB
448, but would like to see two changes. On page 3, line 12,
of the original bill, she would like to see the language
"used for brood stock" be replaced with "taken from wild
stock for hatchery incubation purposes."
REPRESENTATIVE HARLEY OLBERG explained that there is a
proposed committee substitute which changes the words "used
for brood stock" to "to be incubated."
MS. MCCARTY also suggested that "for brood stock" be changed
to "for propagation" on page 4, line 1.
REPRESENTATIVE OLBERG explained that the proposed committee
substitute changes the wording to "for incubation." MS.
MCCARTY concurred with the changes.
Number 253
TOM MEARS, EXECUTIVE DIRECTOR, COOK INLET AQUACULTURE
ASSOCIATION, testified via teleconference from Soldotna. He
explained his association operates four hatcheries in the
Cook Inlet Region. Mr. Mears said he believes the bill will
be a helpful addition to the continuing need to try to get
as much value as we can out of the fish that return. He
said there are situations where late in the return they are
doing hatchery egg takes and there might be some surplus
brood stock. He said if they could take the eggs and sell
them, they could generate some positive cash flow. Mr.
Mears said he supports the committee substitute.
Number 280
RICHARD ANDREW, COMMERCIAL FISHERMAN, testified in support
of HB 448. He said he thinks it will help a lot.
Number 285
KENNETH DUCKETT, KETCHIKAN GILLNETTER, testified in support
of HB 448. He said he believes there needs to be
legislation developed to obtain the maximum value from fish.
We need to utilize all the fish that we are paying for to be
raised through hatchery programs. Mr. Duckett said he
believes the legislation will give the fishermen some
flexibility to recover resources that are not being fully
utilized. He urged passage of the bill.
Number 304
BILL HOLLORAN, PRODUCTION MANAGER, SOUTHERN SOUTHEAST
REGIONAL AQUACULTURE ASSOCIATION, explained that his
organization is composed of three hatcheries, five remote
sites, and several other enhancement projects. He said
Southern Southeast Aquaculture Association supports the
intent of HB 448. Mr. Holloran noted the concerns he had
were addressed by Ms. McCarty. He said they support HB 448
based on the fact that the commissioner will provide a clear
direction in that the regulations will be consistent with
the intent of the legislature. Mr. Holloran said his
association and staff will cooperate with the commissioner
if he requires their assistance.
PETE ESQUIRO, GENERAL MANAGER, NORTHERN SOUTHEAST REGIONAL
AQUACULTURE ASSOCIATION, testified from Sitka. He said his
organization is in support of HB 448 for all the reasons
that have already been stated.
Number 333
DAVE COBB, BUSINESS MANAGER, VALDEZ FISHERIES DEVELOPMENT
ASSOCIATION, said his association is in support of the
legislation, and their concerns have been addressed by Ms.
McCarty.
Number 341
KEVIN MCDOUGALL was next to testify in support of HB 448.
He explained he is a fisherman and an individual processor
in the Juneau area. Mr. McDougall informed the committee
members he has been marketing his own salmon since 1991. He
explained that brood stock eggs are taken and incubated at a
hatchery. The fry are then brought to a remote release area
in the spring, where they are held and fed for different
lengths of time. The purpose is for the fry to grow and to
imprint them so they come back to that remote release area.
They do not return to the hatchery even through they were
incubated at the hatchery. Mr. McDougall referred to remote
release sites and said they are designated as what might be
called a wipe out fishery. The fish are not there to create
a new salmon run, they are totally for harvest by fishermen
that are fishing in that area. Concerns regarding brood
stock and escapement aren't a problem.
MR. MCDOUGALL said at a certain point in a run, the fish
start to deteriorating to a point where the egg value is
still there, but the color of the skin and flesh has
deteriorated to where the market no longer wants the fish.
Currently, there are fish coming to the remote release sites
that are going to waste because of existing regulations.
He said the legislation will allow fishermen to extract the
value from the eggs. Mr. McDougall believes there will be
some opposition to the bill from individual processors. If
the processors want to continue to buy those fish, that
option is still open to them. They can choose to no longer
buy a fish, but yet they do not want someone else to extract
any value out of them. He urged passage of the legislation.
DAVID BRAY, GILLNETTER, testified in support of HB 448. He
said he believes it address some of the want and waste that
has been occurring.
JERRY MCCUNE, PRESIDENT, UNITED FISHERMEN OF ALASKA (UFA),
testified in support of HB 448. He noted his organization's
concerns have been addressed in the proposed committee
substitute. He said there probably will be some opposition
to the bill and he is afraid the public might misunderstand
the bill. He said it is not in a roe stripping business.
UFA's position is that fish which have any chance of being
marketed, shouldn't have their roe taken. Mr. McCune said
his organization doesn't want to see any abuse.
Number 471
There being no further testimony, REPRESENTATIVE OLBERG
moved to adopt CSHB 448(FSH). Hearing no objection, the
motion carried.
Representative Olberg moved to pass CSHB 448(FSH), out of
the House Special Committee on Fisheries, with individual
recommendations. There being no objection, CSHB 448 (FSH)
was passed out of committee with individual recommendations.
ADJOURNMENT
There being no further business to come before the House
Special Committee on Fisheries, Chairman Moses adjourned the
meeting at 9:20 a.m.
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