Legislature(1995 - 1996)
01/27/1995 03:30 PM Senate RES
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SENATE RESOURCES COMMITTEE
January 27, 1995
3:30 P.M.
MEMBERS PRESENT
Senator Loren Leman, Chairman
Senator Drue Pearce, Vice Chairman
Senator Lyman Hoffman
COMMITTEE MEMBERS ABSENT
Senator Steve Frank
Senator Rick Halford
Senator Robin Taylor
Senator Georgianna Lincoln
COMMITTEE CALENDAR
SENATE BILL NO. 3
"An Act relating to an antitrust exemption for persons engaged in
the fishing industry."
SENATE JOINT RESOLUTION NO. 3
Opposing the ban on the export of Alaska North Slope crude oil;
endorsing federal legislation to remove restraints on the export of
Alaska North Slope oil; requesting the Congress of the United
States to pass legislation to permit the export of Alaska North
Slope crude oil; and urging the President of the United States to
support the legislation to lift the ban on the export of Alaska
North Slope crude oil.
PREVIOUS ACTION
SB 3 - See Resources minutes dated 1/25/95 and 1/27/95.
SJR 3- See Resources minutes dated 1/25/95 and 1/27/95.
WITNESS REGISTER
Senator Duncan
State Capitol
Juneau, Ak. 99811-1182
POSITION STATEMENT: Sponsor of SB 3.
Ed Crane
Commercial Fishing and Agriculture Bank (CFAB)
2550 Denali
Anchorage, AK 99502
POSITION STATEMENT: Commented on SB 3.
Dorne Hawxhurst
Cordova District Fishermen United
Cordova, Ak. 99574
POSITION STATEMENT: Supported SB 3.
Rick Lauber
Pacific Seafood Processors Association
321 Highland Dr.
Juneau, Ak. 99801
POSITION STATEMENT: Supported SB 3.
Dean Paddock
Bristol Bay Driftnetters Association
P.O. Box 20312
Juneau, Ak. 99802
POSITION STATEMENT: Supported SB 3.
Jerry McCune
United Fishermen of Alaska
212 4th Street, Suite 112
Juneau, Ak. 99801
POSITION STATEMENT: Supported SB 3.
Donna Parker
Fisheries Specialist
Department of Commerce and Economic Development
P.O. Box 110804
Juneau, Ak. 99811-0804
POSITION STATEMENT: Supported SB 3.
Senator Ellis
State Capitol
Juneau, Ak. 99811-1182
POSITION STATEMENT: Sponsor of SJR 3.
Chuck Logsdon, Economist
Department of Revenue
550 W 7th Ave., Suite 570
Anchorage, Ak. 99501-3557
POSITION STATEMENT: Supported SJR 3.
Commissioner Hensley
Department of Commerce and Economic Development
P.O. Box 110800
Juneau, Ak. 99811-0800
POSITION STATEMENT: Supported SJR 3.
ACTION NARRATIVE
TAPE 95-2, SIDE A
SRES - 1/27/95
SB 3 ANTITRUST EXEMPTION FOR FISHERMEN
Number 001
CHAIRMAN LEMAN called the Senate Resources Committee meeting to
order at 3:30 p.m. and announced SB 3 to be up for consideration.
SENATOR DUNCAN, sponsor, said the bill will allow fishermen to form
associations to collectively negotiate raw or processed fish prices
with processors. It does not authorize processors to agree among
themselves on the prices they will pay fishermen.
Senator Duncan explained that once the State Legislature has
approved this legislation the state fishermen and processors would
be in a position to request a federal exemption and said that the
attitude in Congress is favorable now that the Alaska delegation is
in the majority.
Number 102
ED CRANE, Commercial Fishing and Agriculture Bank, said he didn't
see any immediate interest for CFAB with this legislation. He has
personal views based on his considerable experience with producers
and marketers of agriculture commodities of all kinds. He said
that a producer of commodities is greatly disadvantaged by his or
her isolated status within what may be a huge conflagration of
economic forces. They are further made vulnerable by the limited
life nature of most commodities. There has probably been no more
positive statutory force affecting commodities producers than the
limited antitrust exemptions in federal and most state statutes.
These are the cornerstones of the stability which is critical to
any food production and distribution system.
Mr. Crane reiterated that SB 3 establishes and clarifies this
important exemption for harvesters, producers, and marketers of
Alaska seafoods' great resources.
Number 154
DORNE HAWXHURST, Cordova District Fishermen United, supported SB 3
because it clarifies ambiguities in existing law, it might remove
inconsistencies between state and federal laws, and it might remove
negative obstacles to negotiating a higher price per pound for
producers of consistently good quality fish.
Number 201
RICK LAUBER, Pacific Seafood Processors Association, said the
members of his association have had significant difficulties in
dealing with fishermen who wish to discuss matters with them and
the state of Alaska who would like to bring together fishermen and
processors to help in price negotiations where there have been
price disputes. Because of the state and federal antitrust laws,
it has been very difficult to do this.
Currently, Mr. Lauber said, the federal sentencing guidelines for
antitrust violations have a minimum sentence of 18 months in a
federal penitentiary. So this is obviously treated as a very
serious matter.
This bill is very clear that it would not allow processors to get
together outside of fishermen being present and discuss prices or
any kind of price fixing, he said. It would allow fishermen and
processors to be in the same room when price is discussed.
He thought it more likely if we changed the state law that we would
get some relief from the federal law.
Number 284
DEAN PADDOCK, Bristol Bay Driftnetters Association, strongly
supported SB 3 as a constructive piece of legislation. Fishermen
need more tools like this. He supported Mr. Lauber's remarks.
Number 297
JERRY MCCUNE, United Fishermen of Alaska, supported SB 3. He said
it is impossible to have a discussion on price with any processors
present. He used the example of the Exxon Valdez oil spill where
fishermen had many discussions with the processors about the
perception of the seafood and effect on price, but on the mention
of the word "price" the room clears out.
Number 317
DONNA PARKER, Fisheries Specialist, Department of Commerce and
Economic Development, strongly supported this bill.
She said a couple of years ago Governor Hickel appointed a Salmon
Strategy Task Force which was specifically designed to look at the
price declines of salmon. She said the Department of Law
recommended this legislation as a possible way to better position
ourselves in the marketplace.
The market strategy was to expand marketing efforts, increase
product options to consumers, improve consistency of quality, and
reduce the cost of production, Ms. Parker said. This legislation
addresses the component of increasing the value of our salmon by
increasing the options we provide to consumers with products they
want, specifically frozen convenience style foods - a market which
requires a stable price, a stable supply, and quality.
The DCED undertook a study of a comparison of Canadian and Alaskan
salmon prices to find out why Canadian producers were getting more
money for their salmon. There were several reasons, but one of
them was that they negotiate 3-year price agreements.
Ms. Parker said the DCED offers an 11-minute video describing the
salmon strategy that was developed and how the legislature and
other agencies might facilitate that.
SENATOR LEMAN thanked everyone for the testimony and said the
Committee would take SB 3 up at the next meeting.
SRES - 1/27/95
SJR 3 EXPORT OF ALASKA OIL
Number 407
SENATOR LEMAN announced SJR 3 to be up for consideration.
SENATOR ELLIS, sponsor, said it is important to renew support of
SJR 3 with our delegation in Congress at this time because they are
now in the majority. He said some of the numbers in the resolution
need to be amended to contain the very best information available
to send to Congress.
Senator Ellis noted that ARCO had just changed its stance to one of
support for SJR 3. He noted there was a position paper from the
Department of Commerce in strong support of SJR 3.
Number 443
CHUCK LOGSDON, Economist, Department of Revenue, supported SJR 3.
This would not only increase state oil revenues, but would make
further investment in our oil fields more attractive. He said the
window of opportunity provided with lifting the export ban is
closing as production continues to go down. There are
approximately 18 months after which the export ban will not
necessarily increase our revenues.
Number 509
COMMISSIONER HENSLEY, Department of Commerce and Economic
Development, said Alaska's oil will become increasingly important
as production in the lower 48 declines. He supported passage of
SJR 3. He said the ban precludes the North Slope oil from being
sold into the highest value markets, particularly in Japan and
Korea. He said he was in Washington when this ban was proposed
which was in another age and another time.
SENATOR LEMAN thanked everyone for their testimony and said he
would take this legislation up again at the next meeting. He then
adjourned the meeting at 4:15 p.m.
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