01/30/2020 11:00 AM House FISHERIES
| Audio | Topic |
|---|---|
| Start | |
| HB203 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 203 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
January 30, 2020
11:13 a.m.
MEMBERS PRESENT
Representative Louise Stutes, Chair
Representative Bryce Edgmon
Representative Chuck Kopp
Representative Geran Tarr
Representative Sarah Vance
MEMBERS ABSENT
Representative Jonathan Kreiss-Tomkins
Representative Mark Neuman
COMMITTEE CALENDAR
HOUSE BILL NO. 203
"An Act relating to transportation of live crab."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 203
SHORT TITLE: TRANSPORTATION OF LIVE CRAB
SPONSOR(s): REPRESENTATIVE(s) KNOPP
01/21/20 (H) READ THE FIRST TIME - REFERRALS
01/21/20 (H) FSH, RES
01/30/20 (H) FSH AT 11:00 AM GRUENBERG 120
WITNESS REGISTER
REPRESENTATIVE GARY KNOPP
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, introduced HB 203.
INTIMAYO HARBISON, Staff
Representative Gary Knopp
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 203 on behalf of
Representative Knopp, prime sponsor.
JEREMY WOODROW, Executive Director
Alaska Seafood Marketing Institute (ASMI)
Department of Commerce, Community, and Economic Development
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 203.
EDWARD POULSEN, Business Owner
GKC Holdings LLC
Dutch Harbor, Alaska
POSITION STATEMENT: Testified in support of HB 203.
ERLING JACOBSEN, Executive Director
Inter-Cooperative Exchange;
Acting Chair
Alaska Seafood Marketing Institute Shellfish Committee
Lind, Washington
POSITION STATEMENT: Testified in support of HB 203.
JAMIE GOEN, Executive Director
Alaska Bering Sea Crabbers (ABSC)
Seattle, Washington
POSITION STATEMENT: Testified in support of HB 203.
ACTION NARRATIVE
11:13:59 AM
CHAIR LOUISE STUTES called the House Special Committee on
Fisheries meeting to order at 11:13 a.m. Representatives Stutes,
Edgmon, Kopp, and Vance were present at the call to order.
Representative Tarr arrived as the meeting was in progress.
HB 203-TRANSPORTATION OF LIVE CRAB
11:14:44 AM
CHAIR STUTES announced that the only order of business would be
HOUSE BILL NO. 203, "An Act relating to transportation of live
crab."
11:15:38 AM
REPRESENTATIVE GARY KNOPP, Alaska State Legislature, as prime
sponsor, introduced HB 203. He stated that HB 203 is important
to the communities it affects. He introduced his staff,
Intimayo Harbison.
11:16:18 AM
INTIMAYO HARBISON, Staff, Representative Gary Knopp, Alaska
State Legislature, presented HB 203 on behalf of Representative
Knopp, prime sponsor. He stated that HB 203 would change the
language of AS 16.10.240 to remove restrictions on the live
transportation of three crab species: king crab, Dungeness
crab, and Tanner crab. He explained that as the law is
currently written, there is a restriction on the transport of
those three crab species, except when being shipped live via air
freight after pre-packaging. He stated that HB 203 would change
the statute to allow for surface transport of live crab after it
has been first landed in an Alaska port and recorded on an
Alaska Department of Fish & Game (ADF&G) fish ticket. He
explained that the current Alaska statute pertaining to the
transport of live crab was written in the 1960s and was revised
in 1996, due to concerns regarding loss of product and toxins
when transporting by surface rather than air. He stated that
since the initial passing of this legislation and subsequent
amendments, there have been many breakthroughs in the safe
transport of live crab species, which allow for surface
transport while maintaining freshness of product. He explained
that new technology allows for the storage and transport of live
crab by keeping them in cooled and aerated saltwater for the
entirety of their journey to market. He added that this method
of transport allows for crab to be held for up to a month or
longer, without a loss of product or risk to consumers.
MR. HARBISON stated that currently, dead loss on shipments of
live crab out of Alaska can be high due to several factors,
including improper packaging, delayed shipment due to weather,
and a general lack of air shipment service to remote Alaska
communities. He said that HB 203 would allow for high quality
Alaska crab to reach markets despite limitations to air freight.
He explained that Alaska has fallen behind in expanding world
crab markets, due to limitations placed on live export from the
state. He stated that red king crab is currently sold live in
global markets by other industries from foreign countries; this
includes sales to the U.S. and Canada, which would be better
served by the Alaska crab industry. He summarized that the
ability to sell currently restricted species in larger and more
consistent volumes would help expand consumption of Alaska crab,
bring economic opportunity to Alaska crabbing communities, and
overall benefit the state and its industries.
11:18:56 AM
REPRESENTATIVE KOPP, referencing a letter from the United
Fishermen of Alaska (UFA), asked whether the language the UFA
preferred was not included in HB 203 as a result of the bill's
evolution as it was drafted.
MR. HARBISON replied that he thinks the letter was written
during a previous version of the bill. He stated that there
have been suggestions for changes to the bill, by some
individuals in the crabbing industry, that would clarify some
issues.
11:19:53 AM
CHAIR STUTES announced the committee would hear invited
testimony on HB 203.
11:20:39 AM
JEREMY WOODROW, Executive Director, Alaska Seafood Marketing
Institute (ASMI), Department of Commerce, Community, and
Economic Development, testified in support of HB 203. He stated
that ASMI submitted written testimony, which he would summarize
with oral testimony. He explained that crab is a low-volume,
high-value species in Alaska; it only makes up approximately 1
percent of Alaska's ex-vessel volume but represents over 12
percent of the ex-vessel value. He stated that Alaska crab
represents approximately $300 million in first-wholesale value,
but of that $300 million, only approximately 1 percent is
exported live due to several restrictions, market challenges,
and shipping restrictions. He expressed that HB 203 has
significant support from the seafood industry; at ASMI's most
recent annual all-hands meeting, the ASMI shellfish committee
unanimously passed support for legislation that would allow live
shipment of all species of Alaska crab. He reiterated what Mr.
Harbison had explained earlier about improved transportation
technology, which allows for more convenient and cost-effective
shipping of live crab via surface transportation.
MR. WOODROW explained that traditionally live crab has been
required to be air shipped, which is costly and comes at
significant financial risk, as crab can only be out of water for
a short time period without a significant loss of product.
Alaska crab competes on a global market with similar products
caught in other regions of the world. He stated that the
ability to ship more live crab, which receives a premium market
price, better positions Alaska seafood processors to compete
against foreign products. He explained that currently foreign
products often undercut Alaska prices and have more favorable
trade terms in foreign markets in which Alaska crab is sold. He
expressed that HB 203 adds another tool to the toolbox of Alaska
crab processors and producers, and positions Alaska crab species
to stay competitive in other regions of the world.
11:23:36 AM
EDWARD POULSEN, Business Owner, GKC Holdings LLC, testified in
support of HB 203. He stated that over the past several years,
he has been working with Unisea, Inc. in Dutch Harbor to develop
a live golden king crab program. He explained that they have
been pioneering a new container-based technology that allows
crab to be shipped on a barge or container ship from Dutch
Harbor to Seattle. He explained that crab is placed in barrels
with chilled and aerated seawater within containers. The
shipment from Dutch Harbor to Seattle takes approximately five
to six days and crab is then sold to markets from a holding
facility in Seattle. He explained that the technology is still
being improved, but healthy live crab is already being shipped
with low dead loss; the most recent shipment had only 11 dead
crab out of 1,000, 9 of which were the result of a faulty drain
cap on one of the barrels. He expressed that crab shipped live
are healthier than crab that are air-shipped, as a result of
being out of the water for only a short time; crab kept in tanks
in the holding facility in Seattle can be kept alive for well
over a month. He expressed that considerably higher volumes can
be shipped consistently via seagoing containers than when
shipped by air, especially from remote communities such as Dutch
Harbor.
MR. POULSEN stated that red king crab and bairdi crab, also
called Tanner crab, cannot currently be shipped on seagoing
containers due to AS 16.10.240. He expressed that HB 203 would
fix this and allow red king crab and bairdi crab to be shipped
live via containerized seagoing vessels. He emphasized that
this change is important because red king crab and bairdi crab
are ideal species for live markets. Red king crab is widely
available and well known in world markets; currently most of the
product is from Russia and the markets would be glad to have
live Alaska red king crab. He expressed that bairdi crab is a
hearty species of crab, widely considered by Alaskans to be the
most delicious Alaska crab species. He stated that bairdi crab
would be a unique new product in world markets, which he thinks
would be very popular.
11:27:08 AM
MR. POULSEN pointed out that live markets around the world
continue to grow and improve; significant portions of the West
Coast Dungeness fishery and Russian red king crab fishery are
sold as live products to consumers. He explained that high-end
chefs are very interested in having better access to live Alaska
crab, which has a reputation for sustainability and quality. He
expressed that live fresh crab is widely known to taste better
than frozen crab and generally commands a higher price. He
explained that this would benefit crew, vessel owners,
processors, and communities as the live markets continue to
develop. He summarized that there is wide support for HB 203
among crab harvesters, processors, and communities. He said
modifying AS 16.10.240, as proposed by HB 203, would allow
participants of the red king crab and bairdi crab fisheries to
participate in, and benefit from, the growing live crab world
markets, particularly those living in remote ports such as Dutch
Harbor.
11:29:11 AM
ERLING JACOBSEN, Executive Director, Inter-Cooperative Exchange;
Acting Chair, Alaska Seafood Marketing Institute Shellfish
Committee, testified in support of HB 203. He expressed that he
wholeheartedly supports HB 203 and agrees with the comments made
by Mr. Woodrow and Mr. Poulsen. He stated that he agrees with
everything they both said and doesn't feel he needs to add any
additional comments, other than that HB 203 would help to expand
king crab markets and bring additional revenue to Alaska and
Alaska fishermen.
11:30:26 AM
JAMIE GOEN, Executive Director, Alaska Bering Sea Crabbers
(ABSC), testified in support of HB 203. She stated that she
will be speaking on the letter of support that ABSC submitted
for this hearing. She explained that ABSC is a non-profit trade
association representing harvesters of king, snow, and bairdi
crab in the Bering Sea and Aleutian Islands. She explained
there are approximately 70 vessels fishing out of that area, and
ABSC is actively involved in fisheries management, policy
development, scientific research, and marketing. She said that
allowing the transport of all commercial species of live crab
via surface transport in addition to air transport would
increase flexibility and market opportunities for Alaska's crab
fisheries and communities. She explained that given the
variability of crab stocks, fishermen look for ways to increase
the value of their product, especially in times of low catch
levels. She gave an example of the bairdi crab fishery being
closed this year and hopefully opening again soon. She
expressed that HB 203 would increase the value of product by
bringing live fresh crab to markets in addition to processed
crab. She summarized that ABSC supports HB 203 and clarified
that it thinks the bill should cover all of Alaska's commercial
crab species: golden king, red king, blue king, opilio, bairdi,
and Dungeness.
11:31:59 AM
REPRESENTATIVE TARR asked Ms. Goen whether she thinks the bill
should still move forward if the species she listed weren't
added to HB 203.
11:32:14 AM
MS. GOEN answered that ABSC supports HB 203 either way, but for
the sake of efficiency and to bring the most value to Alaska
crab fisheries, it should cover all commercial crab species.
11:32:26 AM
CHAIR STUTES asked whether there were any further questions.
Hearing none, she asked whether the bill sponsor has any
additional comments.
11:32:52 AM
REPRESENTATIVE KNOPP said that he was unaware there were more
than three species prohibited from surface transport, which is
why HB 203 is written the way it is.
11:33:38 AM
REPRESENTATIVE KOPP asked whether any testimony had been heard
from the Department of Environmental Conservation (DEC)
regarding the breakthroughs in food risk safety that have
mitigated the risk of toxins that can accumulate in surface
transport. He observed that it was documented in the sponsor
statement but explained he was looking to see something from the
officials stating that the technology warrants this new
approach.
11:34:21 AM
MR. HARBISON asked Representative Kopp whether he could repeat
the question.
11:34:32 AM
REPRESENTATIVE KOPP, highlighting part of the second paragraph
of the sponsor statement, read, "Since the initial passing of
this legislation ... there have been many breakthroughs in the
safe transport of live crab species. These breakthroughs allow
for the movement of live crab by surface transport while
maintaining freshness of product." He stated that Mr. Harbison
also spoke about the historic risk of toxin build up during
transport, which is why surface transport was not permitted, but
now this risk is mitigated with new technology. He expressed
that that is why he asked if the DEC had issued a statement
verifying that there is no point in these old restrictions.
11:35:15 AM
MR. HARBISON replied that he has been in contact with the DEC.
He stated that the DEC wanted to determine whether it should
have a veterinarian investigate the issue. He said that the DEC
does not currently have anyone looking into live crab fished out
of Alaska. He remarked that he has not heard back from the DEC
with any further concerns it might have, therefore it is his
understanding that the DEC is alright with HB 203 as it is
written and does not require an inspection of the crab. He
expressed that the toxins the DEC are concerned about are those
that result in paralytic shellfish poisoning, which are specific
to Dungeness crab as it is caught in shallower water. He added
that Dungeness crab is currently tested at certain times of year
to ensure consumer safety.
11:36:26 AM
REPRESENTATIVE KOPP stated that he thinks it would be someone
from the DEC responsible for scientific food inspections, and
not a veterinarian, who would corroborate that the improved
technology is reliable for transport. He added that he is
philosophically in support of HB 203, but believes a statement
from the DEC is needed for the record.
11:36:54 AM
CHAIR STUTES encouraged Mr. Harbison to touch base with the DEC
and get a statement of their position for the committee before
the next hearing.
11:37:04 AM
MR. HARBISON replied that he would reach out to the DEC and have
a letter for the committee.
11:37:12 AM
CHAIR STUTES asked whether there were any additional comments.
Hearing none, she pointed out that there are two zero fiscal
notes in the committee packet; therefore, HB 203 has no cost
associated with it. She stated that HB 203 encourages growth
and innovation to the seafood industry at no cost to Alaska.
She expressed that there is a lot of industry support for the
bill with no opposition.
[HB 203 was held over.]
11:38:17 AM
REPRESENTATIVE TARR asked for a brief at ease.
11:38:22 AM
The committee took a brief at-ease at 11:38 a.m.
11:38:50 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Fisheries meeting was adjourned at 11:39
a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 203 1.21.20.PDF |
HFSH 1/30/2020 11:00:00 AM HFSH 2/4/2020 11:00:00 AM HRES 2/19/2020 1:00:00 PM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 203 Fiscal Note ADF&G 1.25.20.pdf |
HFSH 1/30/2020 11:00:00 AM HFSH 2/4/2020 11:00:00 AM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 203 City of Unalaska Support Letter 1.25.20.pdf |
HFSH 1/30/2020 11:00:00 AM HFSH 2/4/2020 11:00:00 AM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 203 Fiscal Note DPS 1.24.20.pdf |
HFSH 1/30/2020 11:00:00 AM HFSH 2/4/2020 11:00:00 AM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 203 Lynden Suport Letter 1.29.20.pdf |
HFSH 1/30/2020 11:00:00 AM HFSH 2/4/2020 11:00:00 AM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 203 Ocean Beauty Support Letter 01.28.20.pdf |
HFSH 1/30/2020 11:00:00 AM HFSH 2/4/2020 11:00:00 AM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 203 SEAFA Support Letter 1.29.20.pdf |
HFSH 1/30/2020 11:00:00 AM HFSH 2/4/2020 11:00:00 AM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 203 Sponsor Statement 01.25.20.pdf |
HFSH 1/30/2020 11:00:00 AM HFSH 2/4/2020 11:00:00 AM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 203 Testimony Recieved by 1.29.20.pdf |
HFSH 1/30/2020 11:00:00 AM HFSH 2/4/2020 11:00:00 AM HRES 2/19/2020 1:00:00 PM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 203 United Fishermen of Alaska Support Letter 1.14.20.pdf |
HFSH 1/30/2020 11:00:00 AM HFSH 2/4/2020 11:00:00 AM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 203 Edward Poulsen and Tom Enlow Letter of Support 1.23.20.pdf |
HFSH 1/30/2020 11:00:00 AM HFSH 2/4/2020 11:00:00 AM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 203 Alaska Bering Sea Crabbers Letter of Support 1.28.20.pdf |
HFSH 1/30/2020 11:00:00 AM HFSH 2/4/2020 11:00:00 AM HRES 2/21/2020 1:00:00 PM |
HB 203 |