02/24/2011 05:00 PM House FISHERIES
| Audio | Topic |
|---|---|
| Start | |
| Overview(s): Alaska Commercial Fishing Harvest Sector | |
| HB121 | |
| HB144 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 144 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 121 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
February 24, 2011
5:03 p.m.
MEMBERS PRESENT
Representative Steve Thompson, Chair
Representative Craig Johnson, Vice Chair
Representative Alan Austerman
Representative Lance Pruitt
Representative Scott Kawasaki
Representative Bob Miller
MEMBERS ABSENT
Representative Bob Herron
COMMITTEE CALENDAR
OVERVIEW(S): ALASKA COMMERCIAL FISHING HARVEST SECTOR
- HEARD
HOUSE BILL NO. 121
"An Act establishing the commercial charter fisheries revolving
loan fund, the mariculture revolving loan fund, and the Alaska
microloan revolving loan fund and relating to those funds and
loans from those funds; and providing for an effective date."
- MOVED CSHB 121(FSH) OUT OF COMMITTEE
HOUSE BILL NO. 144
"An Act requiring the Department of Natural Resources annually
to deliver to the legislature and the governor a report on
fishing stream access."
- MOVED OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 121
SHORT TITLE: LOAN FUNDS: CHARTERS/MARICULTURE/MICROLOAN
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/24/11 (H) READ THE FIRST TIME - REFERRALS
01/24/11 (H) FSH, RES, FIN
02/08/11 (H) FSH AT 5:00 PM CAPITOL 120
02/08/11 (H) Heard & Held
02/08/11 (H) MINUTE(FSH)
02/22/11 (H) FSH AT 5:00 PM CAPITOL 120
02/22/11 (H) Heard & Held
02/22/11 (H) MINUTE(FSH)
02/24/11 (H) FSH AT 5:00 PM CAPITOL 120
BILL: HB 144
SHORT TITLE: REPORT ON FISHING STREAM ACCESS
SPONSOR(s): GARA
02/07/11 (H) READ THE FIRST TIME - REFERRALS
02/07/11 (H) FSH, RES
02/24/11 (H) FSH AT 5:00 PM CAPITOL 120
WITNESS REGISTER
ARNI THOMSON, President
United Fishermen of Alaska (UFA)
Anchorage, Alaska
POSITION STATEMENT: Presented an overview of the Alaska
commercial fishing harvest sector.
MARK VINSEL, Executive Director
United Fisherman of Alaska (UFA)
Juneau, Alaska
POSITION STATEMENT: Offered comments during the overview of the
Alaska commercial fishing harvest sector.
CURTIS THAYER, Deputy Commissioner
Office of the Commissioner
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Presented Amendment 1 to HB 121.
REPRESENTATIVE LES GARA
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 144, as prime sponsor.
ED FOGELS, Deputy Commissioner
Department of Natural Resources (DNR)
Anchorage, Alaska
POSITION STATEMENT: Responded to questions during the hearing
on HB 144.
MARK HUBER, President
Alaska Fly Fishers
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 144.
ACTION NARRATIVE
5:03:41 PM
CHAIR STEVE THOMPSON called the House Special Committee on
Fisheries meeting to order at 5:03 p.m. Present at the call to
order were Representatives Thompson and Miller. Representatives
Austerman, Johnson, Pruitt and Kawasaki arrived while the
meeting was in progress.
^OVERVIEW(S): Alaska Commercial Fishing Harvest Sector
OVERVIEW(S): Alaska Commercial Fishing Harvest Sector
5:04:02 PM
CHAIR THOMPSON announced that the first order of business would
be an overview of the Alaska commercial fishing harvest sector.
5:05:24 PM
ARNI THOMSON, President, United Fishermen of Alaska (UFA), said
that UFA represents 38 member organizations, comprised of every
gear type and fishery available. United Fisherman of Alaska
also has 400 individual lifetime and crew members. Each of the
vessel owners represents a small business and is conducted
accordingly. The association members range throughout the
coastal regions of the state. He provided the UFA mission and
policy statements, which read [original punctuation provided]:
The Mission:
To promote and protect the common interests of
Alaska's commercial fishing industry as a vital
component of Alaska's social and economic well-being.
Policy Statement:
Promote positive relations between industry sectors
Support all commercial gear types and remain neutral
on allocative issues between commercial gear groups
Promote industry safety
Promote healthy fishery resources by supporting
research and habitat protection
Support adequate funding for fishery research,
management and enforcement
Educate industry, government and the public
Oppose fish farming in Alaska
Support development of new fisheries
Support efforts to increase consumption of Alaska
seafood
Promote quality standards - harvester to consumer
Protect industry from attacks through initiatives,
legislation, etc
Protect consumer access to seafood by maintaining a
stable supply of product to processors
MR. THOMSON said the management policies of the state are
mirrored by those of UFA, which are to achieve healthy and
sustainable management of salmon fisheries through escapement
goal management (Biological Escapement Goal); local management
that is adaptive and abundance based; use of Commissioner's EO
[emergency order] authority on an active basis for the local
management of a fishery; and mixed stock management. Further,
he said UFA's core function priorities are to maintain a
legislative presence; provide a forum for communication within
the fishing industry; maintain a statewide trade organization
with staffed offices; and maintain public relations and
educational programs targeting members, the seafood industry and
other industries, as well as the general public. He then
provided a slide which listed the 38 member organizations.
MR. THOMSON presented a series of slides to indicate the
economic impact of the seafood industry in Alaska, and
paraphrased from the accompanying script, which read [original
punctuation provided]:
If Alaska were a nation, it would place 14th among
seafood producing countries.
In the list of top 50 U.S. ports based on ex-vessel
value, Alaska had 13 in the top 50 US seafood ports by
value; 8 of them were in the top 20.
These ports include Dutch Harbor-Unalaska (2nd);
Kodiak (3rd); Naknek-King Salmon (4th); Sitka (5th);
Homer (12th); Seward (17th); Ketchikan (18th); Cordova
(19th). Three other Alaska ports, Akutan, King Cove
and Sand Point, would also make the top 20 were it not
for confidentiality requirements.
The seafood industry, through direct, indirect and
induced effects, contributed a total of $4.6 billion
to Alaska's economic output in 2009.
In 2009, $1.6 billion dollars worth of seafood was
exported directly from Alaska to destinations such as
Japan, China, South Korea, Canada, and Europe.
Alaska's community development quota (CDQ) fishery
entities generated more than $180 Million in revenue
in 65 Bering Sea communities.
CDQ [community development quotas] entities provide
jobs to 1,600 individuals, with total payroll over $22
Million.
1.84 million metric tons (over 4 billion lbs) total
seafood harvest (2009).
With U.S. average yearly consumption of 16 lbs per
person = 255,000,000 people's seafood.
In 2009, Alaska accounted for over 52 percent of the
volume of the commercial seafood harvested in the
United States.
Fishing/Seafood Industry is Alaska's Largest Private
Sector Employer Source. With an estimated harvesting
and processing workforce of 70,548 persons, the
seafood industry employs more workers than any other
non-government industry sector in Alaska, including
oil and gas and mining combined. The trade,
transportation and utilities sector follows with a
workforce of 63,300.
Harvesting Workforce & Gross Earnings for 2009: Total
Individuals who fished -permits-10,529; 77 percent of
permits are held by Alaska residents; Total Workforce
(skippers and crew)-40,192; Total Gross Earnings for
the permit holders $1.2 billion dollars. One in 7
rural residents over the age of 15 was directly
employed in the seafood industry during 2009.
MR. THOMSON listed the top Alaska municipalities and the number
of fishing permit holders and crew members as: Anchorage 1,700;
Juneau 1,100; Homer 1,100; Kodiak 1,400; Bethel 341; Dillingham
593; Petersburg 1,029; Wrangell 510; and Sitka 1,305.
MR. THOMSON directed attention to the committee packet to point
out the fishing calendar by region and an explanation of types
of fishing gear; both of which are available on the Alaska
Department of Fish & Game (ADF&G) website.
5:14:08 PM
MR. THOMSON described the Seafood Revenue Components, which
include a complex matrix of taxes, as well as industry imposed
assessments that contribute $59 million to the economy,
specifically presented as:
Fisheries Taxes FY 2010:
Fisheries Business shared with communities $31,945,400
Fishery Resource Landing shared with communities
$12,552,075
Seafood Marketing Assessment of .5 percent $7,812,697
Salmon Enhancement $4,877,106
Seafood Development $1,578,861
Dive Fishery Management $523,024
5:15:19 PM
MR. THOMSON said the seafood contribution to the state general
fund in the last six years has totaled over $151 million.
Further, he said the transport costs of south bound seafood
exports are a benefit to all Alaskans, as it effectively reduces
the rates of north bound freight; an estimated reduction of 10
cents per pound. He then explained that the Alaska fisheries
management practices are imbedded in the Alaska State
Constitution, requiring sustainable management of the natural
resources. He highlighted the important aspects that assure the
sustainability of the resource, actions that are not always
popular, which are: imposing a predetermined total allowable
catch (TAC); time and area closures; restrictions on boat size
and gear types as well as gear prohibitions; limited entry to a
determined number of harvesters; departmental EO authority to
close or open a fishery in mid season; and in-season and long-
term management goals, established by ADF&G, the Board of
Fisheries, and the Commercial Fishery Entry Commission (CFEC) in
concert with other state departments and federal and
international agencies. Continuing, he said that the CFEC
issues permits and manages a comprehensive fishing permit data
base tracking species, gear, and area.
5:18:47 PM
MR. THOMSON moved on to the area of marketing and said that
sustainability is a major factor influencing purchasing
decisions. As a concept long held in Alaska, sustainability is
integral in the Alaska Seafood Marketing Institute's (ASMI)
global advertising program. The words "Wild, Natural and
Sustainable" make the ASMI logo unique and a sought out symbol
by discerning purchasers. As Alaska's official seafood
promotion arm, ASMI supports the Alaska seafood industry through
promotion in the domestic and international markets. A survey
of the U.S. domestic market reported that 82 percent of the
respondents indicated a preference for products bearing the ASMI
logo, and said it increases their likelihood to purchase. The
success of the logo has lead to its illegal use by other
countries, particularly Russia. He read the ASMI mission
statement, which is to "increase the economic value of the
Alaska seafood resource." He then projected a series of slides
that ASMI uses for marketing purposes to demonstrate the
institute's effectiveness.
MR. THOMSON said that the seafood industry contributes landing
tax revenue to state and local municipal governments, is second
only to the oil industry in contributions to Alaska's state
general fund, and generates over $2 billion in annual ex-vessel
income, and more than $100 million in taxes and fees. The
salmon industry has shed what was an arcane image and become
revitalized in the last decade. Responding to an existing
salmon crisis, the legislature took action in 2000, appointed a
salmon task force, and affected a reformation of the industry by
successfully passing over 50 fishery related bills between 2002
and 2010; a list was provided. He said that state funding has
encouraged and provided a means for processing plants and
fishermen to upgrade product handling and equipment with a focus
on creating premium, value added, and marketable products. He
projected a series of slides with charts indicating the economic
surge realized in the industry, due to the legislative
betterment. The 2010 ex-vessel value has exceeded $530 million,
which is Alaska's largest, valued, salmon harvest in 18 years.
5:25:32 PM
MR. THOMSON stated that, looking forward, UFA has identified
needs of the Alaska fishing industry, and paraphrased from a
bulleted list, which read [original punctuation provided]:
Not looking to reduce taxes or weaken regulations
Regulatory stability equals business stability
Recognition of fisheries as integral to the social and
economic fabric of the state
Maintain ADF&G Budget equals sustainability equals
personnel retention
Continued State support for ASMI budget
Support opportunities for increased & enhanced salmon and
other seafood harvests for all user groups
Fill the pipeline based on sound economic and environmental
policies
Support for regional energy and transportation
infrastructure initiatives
5:26:50 PM
CHAIR THOMPSON referred to the statement that some ports could
be ranked in the top twenty were it not for the confidentiality
requirements, and asked for an explanation.
MR. THOMSON responded that certain processing plants operate
under state and federal confidentiality requirements, which
inhibit public reporting.
5:27:31 PM
REPRESENTATIVE MILLER noted the high number of non-resident
workers in the fishing industry, and asked for an opinion
regarding how to remedy the situation.
MR. THOMSON reported that many vessels come north for the
season, originating out of Washington and Oregon, and bring
their own crews. Additionally, a critical need exists to hire
experienced workers; however, he assured the committee that
there is a desire to hire more Alaskans.
5:29:29 PM
MARK VINSEL, Executive Director, United Fisherman of Alaska
(UFA), interjected that the loan programs, offered by the state
targets Alaskan residents, and are key to retaining the
generational permits.
The committee took an at-ease from 5:32 p.m. to 5:42 p.m.
HB 121-LOAN FUNDS: CHARTERS/MARICULTURE/MICROLOAN
5:42:32 PM
CHAIR THOMPSON announced that the next order of business would
be HOUSE BILL NO. 121, "An Act establishing the commercial
charter fisheries revolving loan fund, the mariculture revolving
loan fund, and the Alaska microloan revolving loan fund and
relating to those funds and loans from those funds; and
providing for an effective date."
5:43:34 PM
REPRESENTATIVE JOHNSON moved Amendment 1, labeled 27-GH1728\1.2,
Kane, 2/24/11, which read:
Page 8, line 15, following "principal":
Insert "and interest"
Page 8, line 17:
Delete "does not accrue during"
Insert "may be deferred for a period of not more
than"
REPRESENTATIVE JOHNSON objected for discussion.
5:44:01 PM
CURTIS THAYER, Deputy Commissioner, Office of the Commissioner,
Department of Commerce, Community & Economic Development
(DCCED), explained Amendment 1, reading the deletions and
insertions.
5:44:52 PM
REPRESENTATIVE JOHNSON noted that by including language
stipulating "may be", options can be considered and interest can
be accrued.
MR. THAYER affirmed that understanding.
REPRESENTATIVE JOHNSON removed his objection, expressed support
for the bill, and said it is important legislation that will
provide opportunities to offer residents a hand-up versus a
hand-out.
CHAIR THOMPSON, hearing no further objection, announced that
Amendment 1 was adopted.
5:47:11 PM
REPRESENTATIVE JOHNSON moved to report committee substitute (CS)
for HB 121, 27-GH1728\I, Kane, 2/16/11, out of committee, as
amended, with individual recommendations and the accompanying
fiscal notes. There being no objection, CSHB 121(FSH) was
reported from the House Special Committee on Fisheries.
The committee took an at-ease from 5:47 p.m. to 5:49 p.m.
HB 144-REPORT ON FISHING STREAM ACCESS
5:49:09 PM
CHAIR THOMPSON announced that the final order of business would
be HOUSE BILL NO. 144, "An Act requiring the Department of
Natural Resources annually to deliver to the legislature and the
governor a report on fishing stream access."
5:49:20 PM
REPRESENTATIVE LES GARA, Alaska State Legislature, speaking as
the prime sponsor, introduced HB 144, stating that it directs
the Department of Natural Resources (DNR) to provide the
legislature with assessments of public access and in the process
scrutinize, and identify fishing streams that may require
easement negotiations.
5:52:43 PM
REPRESENTATIVE AUSTERMAN clarified that the bill requires the
department to provide a report, but does not require action be
taken regarding access to fishing streams.
REPRESENTATIVE GARA explained that it is a request to have the
department report on whatever plans exist for maintenance and
enhancement of public access. Basically, it is a gentle prod to
the agency to perform a statutory duty.
REPRESENTATIVE AUSTERMAN opined that the bill should contain a
request to have the department identify areas of concern,
regarding stream access, and purchase private property where
applicable. He noted that the Copper River area is of
particular concern.
REPRESENTATIVE GARA said the intention of the bill is stated on
page 1, line 11, and paraphrased the language, which read:
(2) stating the department's objectives for enhancing
and maintaining access to and along fishing streams by
the public in the upcoming year.
REPRESENTATIVE GARA stated that the department is currently
authorized to make easement purchases; however, a previous bill,
which mandated that the department negotiate access acquisition
proved to be too cumbersome. The goal is the purchase of
easements, and some lands are covered by the 1970 law which
requires DNR to maintain public easements along, and to, rivers;
however, a significant category of land is not included, such as
the Alaska National Interest Lands Conservation Act (ANILCA)
disbursements.
5:56:20 PM
CHAIR THOMPSON asked how much right-of-way is allowed along a
river between the high watermark and the bank.
REPRESENTATIVE GARA responded that HB 144 does not contain a
mandated measure, and he deferred to the department to comment
on the existing law.
5:56:50 PM
ED FOGELS, Deputy Commissioner, Department of Natural Resources
(DNR), said that the 1970 "too and along" statute allows a 50
foot easement, and said that parcels exist without specified
easements.
5:57:37 PM
REPRESENTATIVE AUSTERMAN questioned the use of the term
"enhancing" and what meaning it conveys to the department.
MR. FOGELS stated his understanding that enhancing connotes an
action for purchase, acquisition, and negotiation of easements.
5:58:59 PM
MARK HUBER, President, Alaska Fly Fishers, stated support for HB
144, indicating that the bill will benefit all Alaskans who
desire to gain access to fishing resources. He reported that
stream access has been an issue throughout the western states,
and has resulted in court battles, some of which have progressed
to the U.S. Supreme Court. The bill is a pro active step to
provide stream access, at no additional cost to the state.
6:01:16 PM
REPRESENTATIVE JOHNSON asked for the department's position on HB
144.
MR. FOGELS replied that DNR has not taken an official position.
In response to a committee member, Mr. Fogels said the reporting
costs will not be significant, hence the zero fiscal note.
6:03:29 PM
REPRESENTATIVE AUSTERMAN noted that access enhancement may
include the purchase of land, and questioned the zero fiscal
note.
REPRESENTATIVE GARA clarified that the bill requests the
department to identify access areas. However, if a purchase is
necessary to ensure that access, a request will be brought
before the legislature for approval and funding.
CHAIR THOMPSON closed public testimony.
6:05:03 PM
REPRESENTATIVE JOHNSON pointed out the letters of support in the
committee packet.
REPRESENTATIVE GARA highlighted the written endorsement from the
Kenai River Sportfishing Association.
6:06:16 PM
REPRESENTATIVE JOHNSON moved to report HB 144 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection HB 144 was reported from the
House Special Committee on Fisheries.
6:06:43 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Fisheries meeting was adjourned at 6:07
p.m.