02/06/2024 10:00 AM House FISHERIES

        HB 195-COOK INLET: NEW ADMIN AREA;PERMIT BUYBACK                                                                    
                                                                                                                                
10:06:32 AM                                                                                                                   
                                                                                                                                
CHAIR VANCE announced  that the first order of  business would be                                                               
HOUSE BILL NO. 195, "An Act  relating to the powers of the Alaska                                                               
Commercial    Fisheries    Entry    Commission;    relating    to                                                               
administrative  areas for  regulation of  certain commercial  set                                                               
net entry  permits; establishing  a buy-back program  for certain                                                               
set net  entry permits;  providing for  the termination  of state                                                               
set net tract leases under  the buy-back program; closing certain                                                               
water  to  commercial fishing;  and  providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
10:07:02 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  JUSTIN RUFFRIDGE,  Alaska  State Legislature,  as                                                               
prime sponsor,  introduced HB  195.   He explained  that fishing,                                                               
commercial  fishing, and  subsistence fishing  are a  part of  an                                                               
Alaskan way  of life.  In  his area there is  a significant issue                                                               
that is  starting to  be mirrored  in other  areas of  the state.                                                               
Decisions are  being made  to prioritize  certain types  of fish,                                                               
species of fish, or  type of fishery.  This has  been seen in the                                                               
Kenai River  and other tributaries  on the Kenai  Peninsula where                                                               
the  large  king salmon  run  is  prioritized,  and the  set  net                                                               
fishery has taken a hit.   For example, last year the sockeye run                                                               
was completely closed  to the set netters.  There  is certainly a                                                               
management  decision  involved,  but another  component  is  that                                                               
there are a lot of permits  that have been issued over the course                                                               
of the years, so there are  now hundreds of permits.  This brings                                                               
about the  question of how  to reduce  the number of  permits and                                                               
nets in  the water, and how  permit holders can be  encouraged to                                                               
hand  permits back.    Waters  would then  be  closed, and  those                                                               
permits  would  not be  issued  again.   This  would  potentially                                                               
increase the fish in the river  and reduce the bycatch.  Versions                                                               
of  this bill  have  been  seen in  the  legislature before,  but                                                               
changes have  been made.  Previous  versions included obligations                                                               
for state  general funds for  the buyback,  but this bill  is not                                                               
intended to cost the state any money.                                                                                           
                                                                                                                                
10:10:25 AM                                                                                                                   
                                                                                                                                
SABINA  BRAUN,  Staff,  Representative Justin  Ruffridge,  Alaska                                                               
State Legislature,  on behalf of Representative  Ruffridge, prime                                                               
sponsor, presented  the sectional  analysis for HB  195 [included                                                               
in  the  committee  packet],  which  read  as  follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Section 1  Amends the  uncodified law  of the  State of                                                                    
     Alaska by  adding a new section  which establishes that                                                                    
     this legislation may be known  as the East Side of Cook                                                                    
     Inlet Set Net Fleet Reduction Act.                                                                                         
                                                                                                                                
     Section 2  Amends the  uncodified law  of the  State of                                                                    
     Alaska by  adding new  Legislative findings  and intent                                                                    
     relating to the bill.                                                                                                      
                                                                                                                                
     Section  3   Amends  AS  16.43.200  by   adding  2  new                                                                    
     subsections:                                                                                                               
                                                                                                                                
     (c)  Establishes an  area of  the Upper  Subdistrict of                                                                    
     the  Cook   Inlet  Central   District  as   a  distinct                                                                    
     administrative  area  separate   from  the  Cook  Inlet                                                                    
     Central  District on  December 31,  2023. This  area is                                                                    
     made up of the statistical  areas identified on January                                                                    
     1,  2023, as  244-21, 244-  22, 244-31,  244-32, 244-41                                                                    
     and 244-42.                                                                                                                
     (d)  Provides that  an  individual who  has  a set  net                                                                    
     permit for the Cook  Inlet Central District on December                                                                    
     31,  2023,   is  not  entitled   to  set  net   in  the                                                                    
     administrative area  created under  this section  as of                                                                    
     January 1, 2023, unless the  permit has been reassigned                                                                    
     to that new administrative area.                                                                                           
                                                                                                                                
     Section 4  Amends the  uncodified law  of the  State of                                                                    
     Alaska by adding  a new section which  provides how the                                                                    
     commission  will determine  whether  an individual  who                                                                    
     holds a set net entry  permit in the Cook Inlet Central                                                                    
     District  on January  1, 2024  is  reassigned an  entry                                                                    
     permit  for the  administrative area  established under                                                                    
     AS 16.43.200(c)  (added by sec.  3 of the bill)  or the                                                                    
     portion  of the  Cook Inlet  Central District  that was                                                                    
     not assigned  into the administrative  area established                                                                    
     under AS 16.43.200(c).                                                                                                     
                                                                                                                                
     Section 5  Amends the  uncodified law  of the  State of                                                                    
     Alaska  by  adding  a new  section  which  defines  the                                                                    
     appeals process  in the  new administrative  area. This                                                                    
     section  provides that  a provisional  license will  be                                                                    
     issued  pending  resolution  of   an  appeal,  and  the                                                                    
     provisional  permit  holder   may  cast  a  provisional                                                                    
     ballot in the election established under section 6.                                                                        
                                                                                                                                
                                                                                                                                
     Section 6  Amends the  uncodified law  of the  State of                                                                    
     Alaska by adding a new  section which requires on April                                                                    
     1,  2024, an  election be  conducted by  the commission                                                                    
     among    persons   holding    permits   in    the   new                                                                    
     administrative  area, to  affirm support  or opposition                                                                    
     to a buy-back program.  Requires the commission provide                                                                    
     public  notice of  the election,  hold public  meetings                                                                    
     concerning  the election,  and clarify  the details  of                                                                    
     the  buy-back program  to  those  participating in  the                                                                    
     election.                                                                                                                  
                                                                                                                                
     Section 7  Amends the  uncodified law  of the  State of                                                                    
     Alaska by  adding a new  section which  establishes the                                                                    
     set  net  entry  permit buy-back  program  for  certain                                                                    
     permits fished  in the administrative  area established                                                                    
     under AS  16.43.200(c) (added by  sec. 3 of  the bill).                                                                    
     This section  will only take  effect if approved  in an                                                                    
     election by  the set  net entry  permit holders  in the                                                                    
     administrative area established  under AS 16.43.200(c).                                                                    
     If it is approved, the  buyback program will become law                                                                    
     30  days following  notification  of  the Lt.  Governor                                                                    
     (see  secs.   9  and   11).  Sets   qualifications  for                                                                    
     participation  in the  program,  provides the  buy-back                                                                    
     price for permits, requires  that the purchased permits                                                                    
     be cancelled  and not re-issued, provides  that certain                                                                    
     waters that  were fished  with permits  purchased under                                                                    
     the program will be closed  to future commercial salmon                                                                    
     fishing, and  specifies other  details of  the buy-back                                                                    
     program.                                                                                                                   
                                                                                                                                
     Section 8  Amends the  uncodified law  of the  State of                                                                    
     Alaska  by  adding a  new  section  which requires  the                                                                    
     commission  to   provide  a   written  report   to  the                                                                    
     Legislature  on the  status of  the  program not  later                                                                    
     than January 15, 2030.                                                                                                     
                                                                                                                                
     Section 9  Amends the  uncodified law  of the  State of                                                                    
     Alaska  by  adding a  new  section  which requires  the                                                                    
     chair  of  the  commission  to  notify  the  Lieutenant                                                                    
     Governor and the Revisor of  Statutes of the outcome of                                                                    
     the election held under section 6.                                                                                         
                                                                                                                                
     Section 10 Repeals  sections 1, 2, 7 and 8  on June 30,                                                                    
     2030.                                                                                                                      
                                                                                                                                
     Section 11  Amends the uncodified  law of the  State of                                                                    
     Alaska  by adding  a new  section  which provides  that                                                                    
     secs. 1,  2, 7,  and 8  take effect  only if  notice is                                                                    
     provided  under section  9  that  the buy-back  program                                                                    
     established under section 7 was approved.                                                                                  
                                                                                                                                
     Section  12 Effective  Date Clause.  Section  4 of  the                                                                    
     bill takes effect January 1, 2024.                                                                                         
                                                                                                                                
     Section 13 Effective Date  Clause. Provides if sections                                                                    
     1,  2, 7  and, 8,  take effect  under section  11, they                                                                    
     take effect  30 days following  the date of  the notice                                                                    
     provided  in section  9 that  the buy-back  program was                                                                    
     approved. [email protected]                                                                                   
                                                                                                                                
     Section 14  Effective Date  Clause. Except  as provided                                                                    
     in sections  12 and 13,  the bill takes effect  July 1,                                                                    
     2023.                                                                                                                      
                                                                                                                                
10:15:12 AM                                                                                                                   
                                                                                                                                
MS. BRAUN began  a PowerPoint presentation, titled  "HB 195: East                                                               
Side of Cook  Inlet Set Net Fleet Reduction Act."   Slide 1 shows                                                               
a map  of the Upper  Cook Inlet  Management Area.   She explained                                                               
that  the  Upper Cook  Inlet  Management  Area consists  of  five                                                               
districts,  but HB  195  would address  only  the upper  eastside                                                               
district.   She explained that  slides 2  and 3 describe  how the                                                               
program would work.   Permit holders could  voluntarily apply for                                                               
the program, and  200 permits would be drawn at  random to retire                                                               
the permit.   Those permits would be bought back  at $260,000 per                                                               
permit.  Funding sources the  Commercial Fishery Entry Commission                                                               
(CFEC)  might designate  could include  federal grants,  the NOAA                                                               
fishing  capacity reduction  program, and  private sourcing,  but                                                               
they would not come from general funds.                                                                                         
                                                                                                                                
MS. BRAUN  moved to slides  3 and  4, which compared  the current                                                               
number of permits and nets in  the water to the resultant permits                                                               
and nets and  described how CFEC would manage the  buyback.  When                                                               
a permit  is retired, neither  the permit  nor the waters  of the                                                               
permit area would be available in the future.                                                                                   
                                                                                                                                
MS.  BRAUN  presented  slide  5   which  summarized  the  buyback                                                               
program.    She stated  that  HB  195  would create  an  optional                                                               
program  designed to  alleviate  tension  between fisher  groups;                                                               
preserve Alaska's  abundance of  salmon; and provide  set netters                                                               
with flexibility and opportunity.                                                                                               
                                                                                                                                
10:18:38 AM                                                                                                                   
                                                                                                                                
GLENN   HAIGHT,   Commissioner,    Commercial   Fisheries   Entry                                                               
Commission (CFEC),  Alaska Department  of Fish &  Game, described                                                               
the  history of  HB 195  beginning in  2018.   He explained  that                                                               
implementing the program  described in the bill takes  away a lot                                                               
of the  risk because  the CFEC  would not  have to  determine the                                                               
number of  limited entry permits,  pick the qualifying  years, or                                                               
develop a scoring  system.  In the past, a  buyback would be paid                                                               
for by  a tax on permit  holders because external funds  would be                                                               
used for  the buyback.   There have  been two  previous buybacks:                                                               
the Southeast salmon purse seine  and the Bering Sea and Aleutian                                                               
Island  crab buybacks.   This  does create  a new  administrative                                                               
area  as per  the CFEC  statutes, so  there is  precedent in  the                                                               
Alaska Department  of Fish  & Game  (ADF&G), although  this would                                                               
create a new subset in the administrative area.                                                                                 
                                                                                                                                
10:22:25 AM                                                                                                                   
                                                                                                                                
KEN COLEMAN,  Member, Eastside Consolidation Association,  gave a                                                               
PowerPoint presentation related to  HB 195, [hardcopy included in                                                               
the   committee    packet],   titled    "Eastside   Consolidation                                                               
Association."   He  said that  he has  been a  set netter  for 54                                                               
years, and  on behalf of the  Eastside Consolidation Association,                                                               
he  requested assistance  in moving  into  the future  in a  very                                                               
difficult  situation.     The  set  netters   have  been  fishing                                                               
Southcentral  Alaska since  1878  and now  find  themselves in  a                                                               
larger, more complex user community.   The association would like                                                               
to reduce the number of nets and permits on Eastside Cook Inlet.                                                                
                                                                                                                                
MR.  COLEMAN said  the association  is  committed to  sustainable                                                               
escapement in the rivers, particularly  with Chinook salmon.  Its                                                               
members believe  there should be  reasonable opportunity  for all                                                               
the user groups including guided  sport fishing, dip net fishing,                                                               
sport fishing,  and setnetting.   The set  netters are  trying to                                                               
find a way to coexist and  collaborate regarding the issues for a                                                               
sustainable   future.     Over  time   the  attempts   to  settle                                                               
differences have been referred to as "the fish wars."                                                                           
                                                                                                                                
MR.   COLEMAN   explained   that   the   Eastside   Consolidation                                                               
Association came  about in an  attempt to ensure all  user groups                                                               
had a fair  and equitable share in the fisheries.   The number of                                                               
setnet permits increased a number  of years ago because of larger                                                               
salmon  runs, but  there  are  now fewer  sockeye  in Upper  Cook                                                               
Inlet,  and  there   are  too  many  permits   and  user  groups.                                                               
Currently, the number of fish per  permit has been reduced, so it                                                               
is no  longer sustainable or  economically viable.   He explained                                                               
how the CFEC system for reducing  the number of setnet permits is                                                               
not  applicable  in  the  current  situation.    Taking  out  300                                                               
permits,   however,  would   get  the   eastsiders  back   to  an                                                               
economically viable place.                                                                                                      
                                                                                                                                
10:29:10 AM                                                                                                                   
                                                                                                                                
MR.  COLEMAN explained  the mechanism  outlined in  HB 195  for a                                                               
voluntary fleet reduction  and noted that it  is widely supported                                                               
in the  setnet community.  As  a setnet permit is  retired, three                                                               
nets would  be permanently  removed from  the eastside  waters of                                                               
Cook Inlet.   The proposed  value of the $260,000  permit buyback                                                               
was  determined by  estimating the  earnings of  a setnet  permit                                                               
each year over 10 years at  $20,000 per year.  Eastside fishermen                                                               
have been  limited to  one or  two days of  fishing for  the last                                                               
several  years.   This is  a proactive  solution for  a currently                                                               
unsustainable situation.   This bill  would give a choice  to the                                                               
set netters  and allow a viable  fishery for those who  choose to                                                               
retain their permits.                                                                                                           
                                                                                                                                
10:40:58 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE stated  that  the  issue concerns  what                                                               
people or groups in Alaska have  access to fish and how many fish                                                               
can be  caught.   The state of  Alaska management  practices have                                                               
prioritized one species of fish, and  as a result, the Cook Inlet                                                               
eastsiders  are  being  shut  out.   There  is  a  real  need  to                                                               
recognize  the issue  and move  forward with  a solution-oriented                                                               
approach rather than simply consider  the eastsiders some sort of                                                               
relic of the past and have them go away.                                                                                        
                                                                                                                                
10:42:52 AM                                                                                                                   
                                                                                                                                
CHAIR VANCE announced that HB 195 was held over.