Legislature(2021 - 2022)GRUENBERG 120
03/02/2021 10:00 AM House FISHERIES
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| Audio | Topic |
|---|---|
| Start | |
| HB79 | |
| HB80 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 79 | TELECONFERENCED | |
| += | HB 80 | TELECONFERENCED | |
HB 80-SPT FSH HATCHERY FACIL ACCT; SURCHARGE
11:08:39 AM
CHAIR STUTES announced that the final order of business would be
HOUSE BILL NO. 80, "An Act establishing the sport fishing
hatchery facilities account; establishing the sport fishing
facility surcharge; and providing for an effective date."
CHAIR STUTES noted the bill sponsor is the House Rules Standing
Committee by request of the governor.
CHAIR STUTES invited Commissioner Vincent-Lang to provide an
opening statement on the bill.
11:09:03 AM
DOUG VINCENT-LANG, Commissioner, Alaska Department of Fish and
Game (ADF&G), on behalf of the governor, provided an opening
statement in support of HB 80. He explained that HB 80 goes
back to the unique package used to fund construction of the
Anchorage and Fairbanks hatcheries. The package attached a
surcharge to sport fishing licenses to pay back bonds that were
taken out; no general funds were used to build the two
hatcheries. The surcharge money was used to match Dingell-
Johnson federal funding and the bonds were repaid much quicker
than expected. When doing the bonding it was realized that
Southeast Alaska anglers, both nonresident and resident, were
paying surcharge fees but not getting benefit from these
hatcheries. It was therefore decided to take $500,000 of
surcharge fees right off the top and support various private-
non-profit (PNP) hatcheries across Southeast Alaska to produce
Chinook and coho salmon.
COMMISSIONER VINCENT-LANG explained that the bonds are paid off,
but that there is a hole for deferred maintenance on the
existing hatcheries, along with a $500,000 hole in Southeast
Alaska for production of Chinook and coho salmon. The
department recognizes that it made a commitment to get rid of
the surcharge when the bonds were paid off. But, since the
hatcheries must be maintained and cannot just be closed, it was
realized that without a surcharge the money would be taken from
the fish and game fund. The department looked for a way to
continue enhancement projects in Southeast Alaska, and HB 80 is
an attempt to reinstate a surcharge at a lower level to maintain
hatchery activities throughout sport fish related activities
across Alaska. Commissioner Vincent-Lang voiced ADF&G's support
of the bill, along with that of the governor's office.
11:11:59 AM
CHAIR STUTES opened public testimony on HB 80.
11:12:11 AM
DAVID LANDIS, General Manager, Southern Southeast Regional
Aquaculture Association (SSRAA), testified in support of HB 80.
He noted that SSRAA operates seven hatcheries in the region.
One of those facilities is Crystal Lake Hatchery in Petersburg,
a designated sport fish facility owned by the State of Alaska.
The state owns three sport fish hatcheries one in Anchorage,
one in Fairbanks, and Crystal Lake in Petersburg. As the
state's contracted operator of the Crystal Lake Hatchery, he
said SSRAA supports the passage of HB 80.
MR. LANDIS stated HB 80 would allow ADF&G to continue funding
operation of the Crystal Lake facility, and to fund critically
needed repairs, which the department has characterized as a
critical need. Failure of the raceways at the facility is truly
not "if" it is going to happen but when, putting the millions of
Chinook salmon reared at the facility in jeopardy. It is a
shovel ready project fully designed, engineered, and ready to
go; it just needs funding. If additional funding beyond the
surcharge amount currently in the bill becomes available,
SSRAA's view is that this project and others like it could
happen more quickly. Keeping Crystal Lake intact with full
operational and maintenance funding is compelling. A recent
department fact sheet shows Crystal Lake providing an impressive
amount of Chinook in Southeast Alaska, and SSRAA's figures
reflect that 40-50 percent of hatchery king salmon harvested in
Southeast Alaska result from the Crystal Lake production. This
would be a user paid system that is fair and appropriate, and
SSRAA supports the bill's passage.
11:14:38 AM
BEN MOHR, Executive Director, Kenai River Sportfishing
Association (KRSA), testified in support of HB 80. He related
that the sport fish license surcharge ended last year because
the bonds that were issued for sport fish hatcheries were repaid
early. The hunting and fishing communities have acted for
nearly 100 years to support the user pays model for fish and
game conservation management, and this case is no different.
The sport fishery, whether in fresh or salt water, directly
benefits from Alaska's sport fish hatcheries. This is the
central reason why KRSA supports the governor's bill, which
introduces a surcharge on sport fishing licenses, the funds from
which are specifically dedicated to supporting sport fishing
activities. It is KRSA's understanding that these funds will
specifically be used for operation and maintenance costs of the
sport fish hatcheries across the state. To KRSA, the critical
portion of the bill is that the funds generated from sport
fishing licenses stay with the users.
MR. MOHR pointed out that the average Alaska fishermen will see
a net $5 reduction in annual licenses between last year and next
year while maintaining the services of ADF&G. The association
recognizes that it may be a challenge for some to see the
decrease of license fees when ADF&G has sustained such
significant losses due to COVID. However, the previous
surcharge wasn't used for operations necessarily, it was a bond
repayment. The loss in sport fish license sales in 2020 was
primarily driven by a lack of participation by nonresident
anglers specifically due to their inability to travel to Alaska.
Directing this surcharge to operations and maintenance of sport
fish hatcheries provides some relief to ADF&G's budget. The
sport fishing community is happy to contribute and KRSA supports
HB 80 as submitted.
11:17:01 AM
REPRESENTATIVE TARR recalled that when this bill was seen last
year, the committee amended it to just be a status quo situation
thinking there was great need, and that was prior to COVID-19.
She asked whether it would change KRSA's support for the bill if
the committee were to consider that again this year.
MR. MOHR replied that it would come down to the details. The
sport fishing community in general is happy to see a decrease in
license fees, he said, and KRSA is supportive of whatever
measures can be taken to reduce hurdles for the average Alaskan
to access the fishery. The net $5 decrease between last year
and next year is something KRSA fully supports, so going back to
the full surcharge would be dependent on the details.
REPRESENTATIVE TARR remarked that Alaskans highly value their
salmon, and that is why she is asking if Alaskans would be
willing to support the status quo for something so important.
11:18:29 AM
KATIE HARMS, Executive Director, Douglas Island Pink and Chum,
Inc. (DIPAC), testified in support of HB 80. She noted that
DIPAC is a private-non-profit corporation with the primary
mission to sustain and enhance the valuable salmon resources of
the state of Alaska for economic, social, and cultural benefits
of all citizens. She expressed DIPAC's support of HB 80.
MS. HARMS stated that DIPAC operates a Chinook sport fishing
program through funds from ADF&G's Division of Sport Fish that
is currently almost 90 percent supported by this sport fishing
license fee surcharge. Prior to 1994, ADF&G produced Chinook
salmon to enhance the Juneau area recreational fisheries. These
fish were raised at the state's Snettisham hatchery and released
at selected sites in the Juneau area. In 1994 Snettisham was
converted to a sockeye salmon production facility and the Juneau
Chinook program was transferred to DIPAC's Macaulay Salmon
Hatchery. Since that time DIPAC has received just over $340,000
each year for this sport fishing enhancement program. Without
these outside funds the Chinook program would have never gotten
off the ground at DIPAC, yet it has become a stable program for
the Juneau area anglers.
MS. HARMS related that during the past two years Southeast
Alaska has seen depressed salmon returns. Due to poor chum
returns in 2019 and 2020 DIPAC came up well short of its
operational and capital revenue needs from its cost recovery
harvest programs. With no surcharge license fee revenues coming
from ADF&G to DIPAC this year the Chinook program will likely be
greatly reduced. If no consistent funding source can be
identified for the program into the future, then there is a
potential that the DIPAC board may be faced with the tough
decision to eliminate the program altogether.
11:20:34 AM
AL BARRETTE testified in opposition to HB 80 as written. He
stated he is a sport fish user and a subsistence fisherman. He
supported the [first] bill passed several years ago that paid
off the two hatcheries in Anchorage and Fairbanks that directly
affect sport fishermen. He supports continuing the maintenance
and operation of those two hatcheries that are dedicated to
sport fishing. However, sport fishermen are subsidizing
commercial cost recovery programs in the Southeast Alaska
hatcheries and as a sport fisherman he cannot support that. He
would amend the two state hatcheries in Southeast Alaska that
are primarily set up for cost recovery and secondary to sport
fishermen users.
11:21:48 AM
FORREST BRADEN, Executive Director, SouthEast Alaska Guides
Organization (SEAGO), testified in support of HB 80. He noted
SEAGO is a nonprofit association representing fishing lodge and
charter businesses across the Alaska panhandle, with these
businesses making up roughly half of the marine charter fishing
activity in the state. The bill has SEAGO's full support and
SEAGO hopes to see the enhancement surcharge quickly
reestablished. Hatchery production at the state-operated
facilities in Fairbanks and Anchorage, as well as production
through private contracts in Southeast, are critical in
maintaining key sport fishing opportunities across Alaska, and
these programs need continued funding.
MR. BRADEN spoke to the surcharge funds that have benefitted
Southeast Alaska anglers. He said the Southeast sport fishery
is heavily dependent on fishing opportunity for kings and cohos
and, to date, surcharge money directed to Southeast has gone
largely toward Chinook hatchery production. A quarter of all
king salmon harvested in the Southeast sport fishery are fish
from Southeast hatchery origin, and for inside waters around
Juneau, Petersburg, and Ketchikan that number goes up to 50
percent. Given current wild stock closures on inside waters
into late season, terminal harvest areas with hatchery returns
are the only access many anglers have to king salmon all year.
When waters are open to wild stock harvest, hatchery fish
available for harvest in common property fisheries help take
pressure off those wild stocks while those stocks rebuild.
MR. BRADEN pointed out that a lot of the Southeast hatchery
production benefitting sport anglers in common property
fisheries is supported from landing taxes in the commercial
fishery. So, he continued, sport fishermen can and should
contribute to the availability of target species in waters that
they share with other user groups by paying an enhancement
surcharge to fishing licenses. Hatchery production costs are
rising, and repair of infrastructure continues to be needed.
Maintaining fishing opportunities for sport, personal use, and
commercial fisheries supported by current hatchery production
and sport surcharge funds are key in making that happen. Mr.
Braden added that SEAGO can support placing nonresident
surcharge amounts back to original levels with the condition
that any additional funds go toward increased production of
fishery access, and not activities unrelated to the intent of
the bill. He urged that HB 80 be moved forward.
11:24:21 AM
REPRESENTATIVE KREISS-TOMKINS thanked SEAGO for testifying on
both HB 79 and HB 80.
11:24:37 AM
SUSAN DOHERTY, Executive Director, Southeast Alaska Seiners
Association (SEAS), testified in support of HB 80 and its intent
to provide a source of revenue to ensure critical infrastructure
and enhancement activities can be maintained and have a
continued funding source. She said SEAS would favor keeping the
nonresident surcharge at its previous level to guarantee that
the many projects in ADF&G's fact sheet can be sufficiently
funded. Addressing previous testimony that sport fish dollars
support the cost of recovery activity, she said it is the
opposite. Chum production and the cost of recovery activities
of those fish allows the association to continue to raise coho
and Chinook, which are not as valuable commercial harvested
fish, except to the trollers.
MS. DOHERTY pointed out that when looking at projects and their
locations, the six sites in Southeast Alaska only depict
projects where sport fish dollars are partnered with private-
non-profit association dollars to achieve these release numbers.
The commercial fishermen in Southeast, through their regional
associations, pay for and operate the majority of enhancement
activities in this region, many of which are coho and Chinook.
Over the 35 years from 1985-2019, commercial fishermen through
their 3 percent enhancement tax have provided more than $104
million through assessment alone. This is an average of $3
million every year for the last 36 years. The private-non-
profit associations operate many programs that provide sports
opportunity for coho and Chinook harvest throughout the region
that are solely paid for by the fishermen associations. Some
assurance that the share of the surcharge money comes to
Southeast is an important piece of this legislation to consider.
She said SEAS supports passage of HB 80, hopefully with some
amendments to address ways to make it even better.
11:27:16 AM
MICHAEL KRAMER, Chair, Fisheries Subcommittee, Fairbanks Fish &
Game Advisory Committee, testified that the advisory committee
opposes HB 80, and he personally opposes it as well. He said
the surcharge was designed for the specific purpose of
constructing the hatcheries in Anchorage and Fairbanks that
benefit sport users. A small portion of that, $517,000 a year,
was directed to Crystal Lake, which annually produces about 2
million king salmon smolt. According to Crystal Lake's website,
about 20,000 of those fish were harvested in 2020, of which
17,525 were harvested in the commercial fishery, leaving less
than 2,500 available for cost recovery for the hatchery and for
directed sport fishing. The surcharge, even if cut in half,
would still raise tens of millions of dollars that the advisory
committee doesn't think would be well spent by a private-non-
profit hatchery run by the commercial fish industry. The
commissioner has said that ADF&G will support the rearing and
release of all the hatchery kings produced by Crystal Lake in
2021 and 2022. The advisory committee doesn't know where those
funds are coming from but apparently there are funds still
available.
MR. KRAMER argued that most of the state funds going into the
Crystal Lake Hatchery are benefitting the commercial fishery
approximately 90-95 percent. While of some interest to sport
opportunity in the Southeast area, that is not the hatchery's
mission as it is releasing at remote sites that are primarily
engaged in by commercial fishing. Recent regulatory changes
would expand cost recovery efforts in those terminal release
areas that are remote and not accessed often by sport fishers.
The specific purpose of the surcharge was to build the two
hatcheries in Fairbanks and Anchorage. That purpose has been
accomplished and it is time for the surcharge to go away. There
needs to be concern about Alaska's wild fish stocks and the
impacts that hatchery over-releases are having on wild stocks.
Taxing sport fish anglers who primarily rely on wild stocks to
support a commercial fish enhancement program is inappropriate.
11:30:14 AM
REPRESENTATIVE TARR acknowledged Mr. Kramer's concerns about
Crystal Lake, but said the hatchery is just one piece of a much
bigger effort here. According to the committee's research, she
continued, the bill would benefit both commercial and sport
anglers. To provide Mr. Kramer with a better sense of how
Interior Alaska sport anglers would benefit from this program,
she stated she would email him an ADF&G document that shows 270
release locations throughout Alaska.
11:31:28 AM
RAY DEBARDELABEN testified in support of HB 80. He stated he is
testifying on behalf of himself, but that he is currently
president of the Kenai River Professional Guide Association
(KRPGA). He related that he has spoken with several KRPGA board
members and general members, and they are in full support of HB
80. He pointed out that while the hatcheries in Anchorage,
Fairbanks, and Southeast are mentioned, the hatchery at Crooked
Creek is not and it could also use some help. He questioned why
this hatchery isn't mentioned in the language given the king
salmon concern on the Kenai River, and that over the past five
seasons it has been rare to harvest any Kenai kings that are
greater than 34 inches. He said he likes Representative
McCabe's suggestion to combine HB 79 with HB 80 because
increasing the license fee by $4.00 for the hatchery program and
$2 for the logbook program would be a simple solution.
11:33:04 AM
RONI CARMON noted that the term "common use" is used often in
relation to HB 80, a term that means everyone can use it. Even
though Southeast hatcheries are being talked about, it relates
to all hatcheries. The 3 percent paid by commercial fishermen
has enhanced the sport fishery. The Prince William Sound
hatcheries are for commercial fishermen and their livelihoods,
and so should not be mixed with common use. The Kenai River is
common use, and everything is common use, so it means everybody
has a right to fish. It is the commercial fishery that is
paying that price, so if it's common use then the sport fishery
should pay the 3 percent enhancement off of their fees and
licensing. As stated by a previous witness, the commercial
fishery is paying for this. Nothing or very little is being
contributed by the sports fishery. Common use means that the
commercial fishermen should get their cost recovery and the
expenses they've paid for their hatcheries first; common use is
a term that shouldn't be used for those hatcheries.
11:35:30 AM
LISA VON BARGEN, Borough Manager, City and Borough of Wrangell,
testified in support of HB 80. She stated that on the surface
HB 80 appears to be a vehicle only for sustaining sport fish
enhancement, but offered her understanding that the committee
realizes that is not the case. The funding generated under this
program will support hatcheries like Crystal Lake in Petersburg,
considered to be a sport fish hatchery. However, Crystal Lake
also rears king salmon used to stock four commercial fisheries
used by seine, troll, and drift fishers in southern Southeast
Alaska. In 2020 the estimated ex-vessel value of those
fisheries was $1.284 million, and over the past five years the
ex-vessel value was estimated at $7.341 million. The Anita Bay
fishery is vital to the Wrangell fleet; its ex-vessel value in
2020 was about $640,000 and over the past five years more than
$4 million. In August [2020] Wrangell was the first community
in Southeast Alaska to declare an economic disaster, one of the
reasons being the collapse of the salmon fisheries. Without
this enhancement funding, hatcheries like Crystal Lake will
close and those commercial fisheries will disappear. Wrangell
and the entire region cannot sustain another economic blow. She
requested that the committee approve HB 80.
11:37:06 AM
CHAIR STUTES, after ascertaining no one else wished to testify,
closed public testimony on HB 80.
11:37:22 AM
REPRESENTATIVE STORY observed from the backup documentation that
the objective is for maintenance and operations for some
hatcheries, and in Southeast Alaska it is projected for DIPAC to
receive about "$300" and Crystal Lake "$200." She asked what
assurance does the bill give in the language on page 1, line 10,
Section 1, that directly translates to a fee paid by an angler
in say, Region C, allocated for the hatchery stock release.
COMMISSIONER VINCENT-LANG replied that he gives his assurance.
Even though it wasn't written in the original bill, he said,
[ADF&G] is currently giving $500,000 to Southeast Alaska and
plans to continue that in recognition of the importance.
Crystal Lake is a state-owned hatchery, rather than PNP-owned,
and ADF&G is looking at ways to fund its continued operation
through the $500,000, as well as other potential funding sources
through the salmon treaty, to do some of the long-term deferred
maintenance at that hatchery. He allowed there is no written
assurance in the bill, but said it is his intent to continue
that production in Southeast Alaska given how important it is to
all the users and knowing also that any hatchery-produced fish
are added on to Alaska's annual allocation of fish.
11:39:07 AM
REPRESENTATIVE STORY said she is aware the surcharge has lapsed
and offered her understanding that it has been a long-standing
practice to distribute the funds in this way. She asked whether
that understanding would continue under another commissioner or
authority even though there is nothing clearly delineated.
COMMISSIONER VINCENT-LANG responded that he intends to continue
the funding. There have been four or five commissioners since
this began, he said, and those commissioners have all followed
through on that commitment to Southeast Alaska. Even though
that surcharge would go down, he added, it is his intent to
continue the $517,000 investment, which would be a higher
percentage of the surcharge fee than ADF&G has paid in the past.
11:40:12 AM
REPRESENTATIVE MCCABE asked whether he is correct that the
Crystal Lake Hatchery feeds salt water, while the other
hatcheries for stocking sport fish in lakes, although Anchorage
might have a little salt water.
COMMISSIONER VINCENT-LANG answered that the William Jack
Hernandez State Fish Hatchery in Anchorage does salt water and
fresh water releases, and most of the releases out of the [Ruth
Burnett State Fish Hatchery] in Fairbanks are fresh water.
11:42:44 AM
REPRESENTATIVE MCCABE asked whether there are any other
contributions to the Crystal Lake Hatchery besides the
surcharges, such as commercial fishers.
COMMISSIONER VINCENT-LANG answered that all Alaska anglers and
nonresidents are charged a surcharge. A sport fisherman in
Anchorage or Fairbanks gets the benefit of lake stocking and the
benefit of salt water stocking along the coast. In Southeast
Alaska, about one-fourth of the fees are collected but ADF&G
doesn't provide any fish from the Anchorage hatchery because it
is too costly to bring those fish to Southeast. So, ADF&G's way
of supporting the hatchery operations in Southeast Alaska is
through its state-owned facility at Crystal Lake that is run by
a PNP, and a couple other facilities. This is done through two
mechanisms: 1) giving $517,000 in surcharge money, and 2) in
recognition of the importance of sport fishing, additional
monies from the fish and game fund are matched with Dingell-
Johnson monies to support fish production.
REPRESENTATIVE MCCABE asked who else besides the sport fishermen
help fund those hatcheries and the repairs to those hatcheries;
for example, whether commercial fishermen help fund them.
Because some of the fish from the Crystal Lake Hatchery and from
the Anchorage hatchery are going to be caught by commercial
fishermen, he would like to know if any money is collected from
commercial fishermen. While he is a fan of hatcheries, if
multiple groups are going to benefit from the fish, then
multiple groups should be supporting both hatcheries.
COMMISSIONER VINCENT-LANG replied that in Anchorage and
Fairbanks, sport fishermen pay the entirety of the cost. For
the Crystal Lake and Southeast Alaska hatcheries, contributions
come from the commercial industry as well as other federal
sources associated with the salmon treaty.
REPRESENTATIVE KREISS-TOMKINS quipped that Southeast Alaskans
would welcome 100 percent of the costs of that hatchery being
supported by the surcharge.
11:44:07 AM
CHAIR STUTES said the committee would continue considering the
bill along with any proposed amendments on [3/4/21]. She
further noted that consideration is being given to rolling the
changes into a committee substitute (CS).
CHAIR STUTES announced that HB 80 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB79 Support Doc - Paper Logbook 2.24.21.pdf |
HFSH 3/2/2021 10:00:00 AM |
HB 79 |
| HB79 Support Doc - eLogBook 2.24.21.pdf |
HFSH 3/2/2021 10:00:00 AM |
HB 79 |
| HB79 Support Doc - Salmon Treaty - Chinook Mitigation FAQ 2.24.21.pdf |
HFSH 3/2/2021 10:00:00 AM |
HB 79 |
| HB80 Support Doc - Stocking FAQ Revised 2.24.21.pdf |
HFSH 3/2/2021 10:00:00 AM HFSH 3/9/2021 11:00:00 AM |
HB 80 |
| HB 79 Amednment #1 3.2.21.pdf |
HFSH 3/2/2021 10:00:00 AM |
HB 79 |