HOUSE SPECIAL COMMITTEE ON FISHERIES MARCH 12, 1993 8:30 a.m. MEMBERS PRESENT Representative Carl E. Moses, Chairman Representative Harley Olberg, Vice-Chairman Representative Gail Phillips Representative Irene Nicholia MEMBERS ABSENT Representative Cliff Davidson COMMITTEE CALENDAR HB 140 "An Act relating to the king salmon tag fee." MOVED OUT WITH A DO PASS RECOMMENDATION *HJR 34 Requesting the Department of Commerce to give a high priority to fisheries development project grants for the Alaska salmon industry. MOVED OUT WITH A DO PASS RECOMMENDATION *HCR 9 Relating to management of the community development fisheries quota program and fisheries development by the state. HELD IN COMMITTEE FOR FURTHER CONSIDERATION (* first public hearing) WITNESS REGISTER Chris Mitchell, Executive Director Alaska Fisheries Development Foundation 508 West Second St., Suite 12 Anchorage, AK 99501 Phone: 276-7315 Position Statement: Supported HJR 34 Bob Herron, Legislative Aide to Representative Lyman Hoffman State Capitol, Room 503 Juneau, Alaska 99801-1182 Phone: 465-4453 Position Statement: Gave an overview of HCR 9 Karl Ohls, Fisheries Development Specialist Bering Sea Fishermen's Association 725 Christensen Drive Anchorage, Alaska 99504 Phone: 279-6519 Position Statement: Supported HCR 9 Bruce Weyhrauch Alaska Crab Coalition 302 Gold St. Juneau, Alaska 99801 Phone: 586-2210 Position Statement: Questioned the CDQ program John Walsh, Deputy Director Division of Rural Development Department of Community and Regional Affairs P.O. Box 112100 Juneau, Alaska 99801-2100 Phone: 465-4898 Position Statement: Supported HCR 9; recommended changes to CSHCR 9 (FSH) PREVIOUS ACTION BILL: HB 140 SHORT TITLE: FEES FOR NONRESIDENT KING SALMON TAG BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) HUDSON,Phillips TITLE: "An Act relating to the king salmon tag fee." JRN-DATE JRN-PG ACTION 02/08/93 254 (H) READ THE FIRST TIME/REFERRAL(S) 02/08/93 254 (H) FISHERIES, RESOURCES, FINANCE 02/22/93 (H) FSH AT 08:30 AM CAPITOL 17 02/22/93 (H) MINUTE(FSH) 03/03/93 (H) FSH AT 08:30 AM CAPITOL 17 03/03/93 (H) MINUTE(FSH) 03/05/93 (H) FSH AT 08:00 AM CAPITOL 17 03/12/93 615 (H) FSH RPT CS(FHS) NEW TITLE 3DP 03/12/93 615 (H) DP: MOSES, PHILLIPS, OLBERG 03/12/93 615 (H) -FISCAL NOTE (F&G) 3/12/93 03/12/93 615 (H) REFERRED TO RESOURCES BILL: HJR 34 SHORT TITLE: FED FISH RESEARCH & DEVELOPMENT GRANTS BILL VERSION: HJR 34 SPONSOR(S): REPRESENTATIVE(S) MOSES,Ulmer,Kott TITLE: Requesting the Department of Commerce to give a high priority to fisheries development project grants for the Alaska salmon industry. JRN-DATE JRN-PG ACTION 03/05/93 548 (H) READ THE FIRST TIME/REFERRAL(S) 03/05/93 548 (H) FISHERIES 03/08/93 574 (H) COSPONSOR(S): KOTT 03/12/93 614 (H) FSH RPT 3DP 03/12/93 614 (H) FISHERIES REPORT RECOMMENDED AMENDMENT 03/12/93 615 (H) DP: MOSES. OLBERG, NICHOLIA 03/12/93 615 (H) -ZERO FISCAL NOTE (F&G) 3/12/93 BILL: HCR 9 SHORT TITLE: COMMUNITY DEVELOPMENT FISHING QUOTAS BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) HOFFMAN,Ulmer TITLE: Relating to management of the community development fisheries quota program and fisheries development by the state. JRN-DATE JRN-PG ACTION 02/22/93 409 (H) READ THE FIRST TIME/REFERRAL(S) 02/22/93 409 (H) FISHERIES, RESOURCES, FINANCE 03/12/93 (H) FSH AT 08:30 AM CAPITOL 17 ACTION NARRATIVE TAPE 93-11, SIDE A Number 000 CHAIRMAN CARL MOSES called the meeting to order at 8:40 a.m. He noted Representatives Moses, Olberg and Phillips in attendance and said the meeting would begin by bringing up once again HB 140, sponsored by Representative Bill Hudson, which would change the nonresident fees for the king salmon tag. He said the committee would then take up HJR 34 and HCR 9. HB 140: FEES FOR NONRESIDENT KING SALMON TAG CHAIRMAN MOSES reminded the committee they had already taken testimony on HB 140 and had before them a proposed Committee Substitute (CSHB 140 (FSH)) incorporating the changes recommended by the Alaska Department of Fish and Game. Those changes included clarifying throughout the statutes that the king salmon tag only relates to anadromous king salmon; changing the one-day nonresident tag from the sponsor's proposed $5 to $10; making the nonresident military tag $20; and adding a January 1, 1994 effective date. VICE CHAIR HARLEY OLBERG MOVED to ADOPT CSHB 140 (FSH) for discussion purposes. There were no objections, and IT WAS SO ORDERED. VICE CHAIR OLBERG MOVED to AMEND CSHB 140 (FSH) to exempt nonresident minors from the king salmon tag requirement. There were no objections, and the AMENDMENT was ADOPTED. VICE CHAIR OLBERG MOVED to pass out CSHB 140 (FSH), as amended, from the committee. There were no objections, and CSHB 140 (FSH) MOVED out of committee with a do pass recommendation. HJR 34: FED FISH RESEARCH & DEVELOPMENT GRANTS CHAIRMAN MOSES announced the next bill before the committee was HJR 34, which he had sponsored at the request of the Alaska Fisheries Development Foundation. CHRIS MITCHELL, EXECUTIVE DIRECTOR, ALASKA FISHERIES DEVELOPMENT FOUNDATION, testified in favor of HJR 34. He described some of the current problems in the Alaska salmon industry, including the threat of Russian salmon flooding the market. For the last 15 years, he noted the federal Saltonstall-Kennedy grant program has provided $15 million to the seafood industry for fisheries development projects. He described how the annual grant amount has decreased, and has focused primarily on marine mammals, by-catch, and fishing technology. Historically, according to MR. MITCHELL, the money has not been allowed to go towards development of the more traditional fisheries, including salmon, partly because they are not under the management jurisdiction of the National Marine Fisheries Service (NMFS). MR. MITCHELL commented that many people in the salmon industry now believe such help is needed to revitalize that industry. He described HJR 34 as a collective effort to tell the Department of Commerce and the National Marine Fisheries Service to allow the industry to decide what the development grants should be used for, and that salmon is in need of developmental activities. He estimated the $15 million in grants to Alaska has generated more than $250 million in new business in the state. Because the salmon industry is critical to the state's health and the nation's health, he urged passage of HJR 34. CHAIRMAN MOSES asked the committee to consider a PROPOSED AMENDMENT to HJR 34 which would change on p. 1, line 13, the word "products" to "market", being more accurate. VICE CHAIR OLBERG MOVED to ADOPT the AMENDMENT. There were no objections, and the AMENDMENT was ADOPTED. HJR 34: NO ACTION TAKEN DUE TO LACK OF QUORUM. HCR 9: COMMUNITY DEVELOPMENT FISHING QUOTAS BOB HERRON, LEGISLATIVE AIDE TO REPRESENTATIVE LYMAN HOFFMAN, PRIME SPONSOR of HCR 9, testified that Representative Hoffman introduced the resolution to encourage the Hickel administration to elevate the state's role in the Community Development Quota (CDQ) program, which he called the most extensive economic development effort ever to occur in the poorest regions of the state of Alaska. MR. HERRON said it was essential that the state play an important role in this program in its first two years in order to ensure its fulfillment. The Governor has a significant responsibility in this, according to MR. HERRON. What the CDQ program needs, he said, is strong leadership and coordinated support. MR. HERRON also said Representative Hoffman believes there is a need for a review of past fisheries development policy proposals in order to draft a comprehensive fisheries development policy that includes the CDQ program. He described HCR 9 as formal recognition of the CDQ program which also asks the Governor to fully commit the administration to its success. MR. HERRON also noted that Representative Hoffman supports the recommended Committee Substitute (CSHCR 9 (FSH)). KARL OHLS, FISHERIES DEVELOPMENT SPECIALIST FOR THE BERING SEA FISHERMEN'S ASSOCIATION, which represents commercial fishermen in western Alaska, spoke in support of the CDQ program and HCR 9. He commented that his primary job was to work with the CDQ groups in developing group positions. He said the groups had a concern that there be a designated state person in charge of the program, and that HCR 9 addressed that concern. He also said Number 4 in the Resolved sections of the resolution was very important, adding that since CDQs were probably one of the most significant fisheries development programs ever developed in the state, it would be a shame for pollock CDQs to be the end of it. MR. OHLS asked that the pollock CDQ be looked at as the model and cornerstone for an entire fisheries development program for the state of Alaska. CHAIRMAN MOSES acknowledged the arrival of Representative Irene Nicholia. BRUCE WEYHRAUCH, REPRESENTING THE ALASKA CRAB COALITION, questioned the CDQ program itself. First, is it appropriate or necessary to expand CDQs to the rest of the state? Have other regions expressed the same interest as the Bering Sea communities? Is it necessary to expand CDQs to other fisheries of the state? He likened the CDQ program to a form of federal community block grant program, and questioned how this federal involvement would impact state involvement. He also expressed concerns over how the funds from this program would be used, and thought the legislature should consider putting a bound on how these funds are spent so they don't flow out of state. MR. WEYHRAUCH also asked if Alaska's CDQ program would affect national debates on fisheries issues in Congress. He commented that he would submit a copy of a letter from the National Fisheries Institute expressing opposition to CDQs and how they related to the Magnuson Act, Marine Mammal Protection Act, and the Endangered Species Act. Opposition to the CDQ program exists nationally, according to MR. WEYHRAUCH, and will likely build. Any expansion of the program should be done carefully, in consultation with the Congressional delegation, he said. MR. WEYHRAUCH suggested there was a danger that the state may face losing its ability to manage its own fisheries locally, which would thwart the intent of HCR 9. HJR 34: FED FISH RESEARCH & DEVELOPMENT GRANTS The committee returned to HJR 34, and now having a quorum MOVED to PASS HJR 34 as amended, out of the committee with individual recommendations. There were no objections, and IT SO MOVED. HCR 9: COMMUNITY DEVELOPMENT FISHING QUOTAS JOHN WALSH, DEPUTY DIRECTOR OF THE RURAL DEVELOPMENT DIVISION, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS, spoke in favor of HCR 9 and described his department's progress on the CDQ program. He indicated he had some recommended changes to the proposed committee substitute. MR. WALSH also announced that the Governor has signed the final state regulations for the CDQ program. He described additional progress, including the fact that the CDQ groups were actively fishing and that the Governor was proposing a budget amendment for additional staff for the program. MR. WALSH also addressed some of the concerns brought up by Mr. Weyhrauch. He indicated the CDQ program was not really impacting the explosion in fishing activity that was already occurring in the North Pacific, and that CDQs were merely bringing to western Alaska communities some of the benefits of that growth. Once the national interests are aware of that, he believes they will increase their support. MR. WALSH also corrected Mr. Weyhrauch and pointed out that under federal regulations, CDQ groups can only spend their funds on fisheries development. ADJOURNMENT CHAIRMAN CARL MOSES adjourned the meeting at 9:07 a.m.