Legislature(2019 - 2020)BARNES 124
02/19/2020 01:00 PM House RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| HB203 | |
| HB137 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 203 | TELECONFERENCED | |
| *+ | HB 137 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 203-TRANSPORTATION OF LIVE CRAB
1:04:38 PM
CO-CHAIR TARR announced the first order of business would be CS FOR
HOUSE BILL NO. 203(FSH), "An Act relating to transportation of live
crab."
[Before the committee was CSHB 203(FSH), read across the House floor
and referred to the House Resources Standing Committee on 2/5/20.]
1:04:53 PM
REPRESENTATIVE GARY KNOPP, Alaska State Legislature, sponsor of HB
203, informed the committee HB 203 is a noncontroversial bill that
would remove antiquated legislation. He explained during the '60s,
there was a prohibition on the surface transportation of three
species of live crab for two reasons: the crab needed to be landed
in Alaska to collect fisheries taxes and there was a high mortality
rate of crab transported by means other than air transport.
However, due to improvements in technology and methods of shipping,
live crab now can be shipped and kept alive in excess of 30 days.
Representative Knopp advised removal of the prohibition on surface
transportation would add value to the crab end product and
strengthen the market for crab.
1:06:33 PM
INTIMAYO HARBISON, Staff, Representative Gary Knopp, Alaska State
Legislature, on behalf of Representative Knopp, sponsor of HB 203,
paraphrased from the sponsor statement which read [original
punctuation provided]:
House Bill 203
This bill would change the language of Alaska Statute (AS)
16.10.240 to remove restrictions on the surface transport
if live crab. As the law is currently written there is a
restriction on the transport of crab species except for
when shipped, live, via air freight after pre-packaging.
House Bill 203 would change the language of AS 16.10.240
to allow for surface transport of live crab after the
product has been first landed in an Alaskan port and
recorded on an Alaska Department of Fish and Game fish
ticket.
The current Alaska Statute pertaining to the transport of
live crab was written in the 1960's and revised in 1996
due to concerns regarding loss of product as well as
concerns regarding toxins when transporting by surface
rather than air. Since the initial passing of this
legislation, and subsequent amendments, 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. New technology allows for transport, and
storage of live crab, while keeping product in cooled and
aerated saltwater for its entire journey to market.
Furthermore, this method of transport allows for crab to
be held up to a month or longer after harvest, if
necessary, without significant loss of product or risk to
consumers.
As it currently stands dead loss on the shipment of live
crab out of Alaska can be high due to several factors
including improper packaging, delays to air shipment from
weather, and a general lack of air shipment service to
remote Alaskan crabbing communities. This bill will allow
for high quality Alaskan crab to reach markets despite the
limitations to air freight.
As live crab markets continue to expand around the globe,
Alaska has fallen behind due to the limitations placed on
live export from the State. Red King crab is currently
sold live on global markets by industries in other
countries. This includes sales to the United States and
Canada as well as other prime markets who would be better
served by the Alaskan crabbing industry. The ability to
sell currently restricted species in a larger and more
consistent volume would help to expand consumption of
Alaskan crab, bring economic opportunity to Alaskan
crabbing communities, and benefit the State and State
industries as a whole.
1:09:56 PM
REPRESENTATIVE KNOPP noted there is broad support for the bill from
state agencies; in fact, the Department of Public Safety (DPS) said
passage of the bill would make its job easier and the Department of
Environmental Conservation (DEC) has no concerns about the bill.
REPRESENTATIVE HANNAN asked whether the changes to the bill made by
the committee substitute passed by the House Special Committee on
Fisheries were related to the species of crab affected by the bill.
REPRESENTATIVE KNOPP said yes. He explained after the first hearing
of HB 203, the Alaska Department of Fish and Game (ADFG) expressed
concern that only three species of crab were identified in the
original bill; to eliminate confusion in the future, all references
to crab species were removed by [CSHB 203(FSH)].
REPRESENTATIVE RAUSCHER asked how the bill solves the problem of
improper packaging.
REPRESENTATIVE KNOPP described how crab were previously shipped
before the use of saltwater injection, aeration, pumps, and other
improved methods. At one time, four days of surface transportation
could result in a mortality rate of 100 percent.
1:12:30 PM
MR. HARBISON further explained an advance in technology enables air
to be injected into the water which allows crab to breathe, and the
water temperature is controlled. He pointed out crab that are
currently shipped by air freight are removed from water, cooled, and
packaged out of water; however, surface shipping in water is
beneficial to crab.
REPRESENTATIVE TUCK asked whether shipping crab by air freight would
still be an option.
MR. HARBISON said yes. He noted there still will be a high demand
for overnight fresh crab deliveries, and the bill would create an
increase in the volume of fresh crab delivered to markets.
REPRESENTATIVE TUCK questioned why the state imposed a prohibition
on surface shipping crab when the fishermen/suppliers are
responsible for their products.
REPRESENTATIVE KNOPP surmised the state sought to ensure crab were
landed in Alaska in order to collect taxes, and also wanted to
prevent tainted products from reaching markets.
REPRESENTATIVE TUCK asked if the bill requires shippers to use new
methods of transportation. He suggested if not, current methods of
surface transportation would continue to be used.
REPRESENTATIVE KNOPP said no. Shippers could opt to continue to use
the previous methods.
REPRESENTATIVE TUCK asked for further information on the history of
this issue and procedures related to the collection of fisheries
taxes.
REPRESENTATIVE KNOPP expressed his understanding fish tickets are
collected when crab are unloaded from the fishing vessel to the
processor. He deferred to representatives of the fishing industry
to provide more information.
1:19:51 PM
EDWARD POULSEN, member, GKC Holdings, informed the committee his
company is involved in crab harvesting and processing operations in
Dutch Harbor. He spoke in favor of the bill, noting the bill would
allow all crab species to be shipped live by sea. During the past
few years his company has transported live golden crab from Dutch
Harbor to Seattle utilizing new containerized technology.
Currently, Alaska Statutes allow for the shipment of golden king
crab in this method, but not red king crab; in fact, the crab arrive
in Seattle healthy enough to airship to destinations across the U.S.
and to Europe and Asia. He pointed out air service to Dutch Harbor
is unreliable due to limited infrastructure and weather. In
additions, markets have shifted from buying cooked frozen crab to
live crab, which can be provided by the Russian fishing industry to
South Korea and China, and by the West Coast Dungeness crab
industry. The market for live red crab is well-established and the
market for bairdi crab would benefit if shipped live; in fact,
interest in live Alaska crab by consumers and high-end chefs and
restaurants is high, and high prices are paid for premium products.
Mr. Poulsen concluded the bill would benefit crews, vessel owners,
and processors, and the new containerized technology has been proven
to allow remote Alaska ports to successfully ship live red and
bairdi crab to markets by container ship.
1:22:52 PM
MR. POULSEN, in response to Representative Tuck, explained fish
tickets are issued in accordance with the landing of vessels and at
the time the crab are offloaded; dead loss is noted, and there are
no fees paid for dead loss. The crab is held onshore and prepared
for shipping after the harvester and taxes have been paid; neither
the harvester nor the state loses revenue if there is additional
mortality. Further, he pointed out the bill would not remove the
opportunity for air transport when air transport is a viable option;
however, the new technology is needed in remote communities such as
Dutch Harbor and Kodiak.
REPRESENTATIVE RAUSCHER asked for a comparison of the dollar value
of the present and new markets [for live crab].
MR. POULSEN said it is difficult to compare; bairdi crab is a larger
and better product than snow crab. He described how in the live
crab market, high-end chefs are always interested in something new
to promote and will pay a premium price, but it is hard to quantify
what the price could be. In addition, markets are seasonal and
domestic markets are still developing. In further response to
Representative Rauscher, he added the containerized technology is
too new to define the potential of the market; however, it is known
the process of cooking and freezing crab utilizes about 65 percent
of the product, but selling a live crab monetizes 100 percent of the
product.
1:28:54 PM
REPRESENTATIVE TUCK spoke in support of the bill and the provision
requiring that the fish are reported on a fish ticket at landing and
prior to transportation. He directed attention to the bill [on page
1, beginning on line 12, and continuing to page 2, line 1, which
read:
(b) Notwithstanding (a) of this section, live [DUNGENESS]
crab [, SPECIES CANCER MAGISTER,] may be taken, shipped,
transported, or sent from the state by means of surface
transportation only if the crab are taken at a time and
location in the state for which the Department of
Environmental Conservation does not require seafood
processors to test [DUNGENESS] crab for the presence of
marine toxins.
REPRESENTATIVE TUCK surmised [under existing statute] DEC may
require testing only on Dungeness crab and asked whether the bill
allows for testing of all species of crab when required by DEC.
REPRESENTATIVE KNOPP agreed. Currently, only Dungeness crab are
tested for paralytic (PSP) poisoning and the bill provides that
every species is subject to testing should DEC wish to do so.
1:31:17 PM
FRANCES LEACH, executive director, United Fishermen of Alaska (UFA),
informed the committee UFA represents 34 commercial fishing groups
ranging from geoduck divers in Southeast Alaska to Bering Sea
crabbers. Ms. Leach said members of UFA unanimously support HB 203
because limiting surface transportation limits marketability for
many species of crab, such as red king, Dungeness, and bairdi. New
surface shipping technology successfully transports live crab, with
minimal dead loss, in response to consumers preference for live
crab over previously frozen, even at a premium price. Passage of
the bill would allow Alaska to compete with Russian suppliers - who
seek to rebrand Alaska crab as their own - and she urged the
committee to support the bill and thereby, the seafood industry.
REPRESENTATIVE HANNAN observed Southeast crabbers cannot take their
catch directly to market in Seattle, but must offload in Alaska and
obtain a fish ticket. She questioned whether crabbers in Southeast
might travel with their catch south, or if they would utilize a
separate vessel equipped with the new containerized tanks for
transportation.
MS. LEACH has not heard of any Southeast fishermen who plan to
transport their crab, although their vessels are equipped with
recirculating pumps, and she expressed her belief fishermen would
utilize processors for transportation to market.
1:34:15 PM
JEREMY WOODROW, executive director, Alaska Seafood Marketing
Institute (ASMI), paraphrased from the following written statement
in support of HB 203 [original punctuation provided]:
Alaska's crab species are known worldwide as premium
products from an unrivaled ocean environment. Alaska crab
species king, opilio (snow), bairdi (Tanner) and
Dungeness on an annual basis, represent 12 percent of the
total value of all commercially harvested Alaska seafood
species, despite accounting for just one percent of the
total catch. The first wholesale value of all crab species
combined exceeds $300 million annually. Live crab sales,
however, account for less than 1 percent of this total,
which can be attributed to several factors including
shipping limitations. Alaska's crab is enjoyed by consumers
both domestically and abroad. However, in every market
where Alaska crab is available, a comparable species of
crab harvested from a different region in the world is
available as well. Often, Alaska crab species are undercut
by cheaper foreign crab with more favorable trade terms.
Increased competition and lower competitor prices
negatively impact the market position of one of Alaska's
most prized seafood species. Transportation technology for
seafood has made vast improvements in recent years. As
such, the ability to ship live crab via surface now exists
as it never had before. This new technology means that more
crab can be delivered fresh at a lower cost to the seafood
company with less financial risk than associated with
shipping live crab via air. Currently, the majority of
Alaska crab is sold in the form of frozen or cooked
products. However, at market, live crab is sold for a
significantly higher price. HB 203 will correct Alaska
Statute 16.10.240 and allow Alaska processors the ability
to capitalize on the newfound shipping technology by
expanding markets for the highest value product forms. HB
203 supports Alaska's largest private direct employer by
providing the seafood industry with the tools necessary to
compete in the global market.
1:37:24 PM
JAMIE GOEN, executive director, Alaska Bering Sea Crabbers,
paraphrased from the following written testimony [original
punctuation provided]:
The Alaska Bering Sea Crabbers (ABSC) is a non-profit
trade association representing the harvesters of king,
opilio (snow), and bairdi (Tanner) crab in the Bering Sea
and Aleutian Islands. We are actively involved in
fisheries management, policy development, scientific
research, and marketing. ABSC would like to offer our
support for HB 203 (Transportation of Live Crab). 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. For some ports where crab
are landed, air transport cannot handle live crab
shipments in larger volume, or it may not be economical.
Allowing surface transport would increase opportunities
for some ports and fishermen to bring live, fresh crab
into markets. Currently, all crab may be sent via air
transport but only live golden king crab, opilio, and
Dungeness (with some exceptions) may be sent via surface
transport from Alaska. This bill would extend live crab
surface transport to bairdi and other king crab species
(red and blue), as well. In other words, all commercial
crab species could be shipped live via surface or air
transport after being landed in the state and recorded on
a fish ticket. Providing diversity in product forms and
the opportunity for increased market value benefits
Alaska's economy and communities. Given variability in
crab stocks, fishermen look for ways to increase the value
of their product, especially in times of lower catch
levels. The option to also transport any commercial crab
species live via surface transport, in addition to air
transport, provides options for fishermen. This position
is in alignment with the United Fishermen of Alaska (UFA),
of which ABSC is a Board member.
1:39:09 PM
FRANK KELTY, research fisheries consultant, City of Unalaska,
expressed his personal support for HB 203 and provided a personal
history of his experience working in crab fisheries. He said he
also recommended that the City of Unalaska support the bill and
opined the bill maximizes economic benefits to harvesters, quota
shareholders, and communities, from a low-volume, high-market
species. Mr. Kelty agreed the technology has improved from 30-40
years ago, and the shipment of live crab species would increase the
value of the product and develop new export markets in a time of
closures and declining catch. In fact, the Bering Sea crab
fisheries have been in decline for many years and some fisheries
have been closed, or opened for minimal seasons, creating economic
hardship for all. Further, Mr. Kelty pointed out in [3/20] the
Board of Fisheries, ADFG, will review the bairdi fisheries
management plan and changes made therein may increase Tanner crab
deliveries for the Asian market. He restated several reasons
supporting the passage of HB 203.
1:43:46 PM
CO-CHAIR TARR opened public testimony on HB 203. After ascertaining
no one wished to testify, public testimony was closed.
HB 203 was held over.
| 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 CS(FSH) v. U 2.5.20.PDF |
HRES 2/19/2020 1:00:00 PM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 203 Sponsor Statement 2.5.2020.pdf |
HRES 2/19/2020 1:00:00 PM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 203 Fiscal Note 1 - DFG-DCF 2.5.2020.PDF |
HRES 2/19/2020 1:00:00 PM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 203 Fiscal Note 2 - DPS-AWT 2.5.2020.PDF |
HRES 2/19/2020 1:00:00 PM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 203 HFSH Testimony 2.6.2020.pdf |
HRES 2/19/2020 1:00:00 PM 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 137 Sponsor Statement 2.10.2020.pdf |
HRES 2/19/2020 1:00:00 PM HRES 2/21/2020 1:00:00 PM |
HB 137 |
| HB 137 v. A.PDF |
HRES 2/19/2020 1:00:00 PM HRES 2/21/2020 1:00:00 PM |
HB 137 |
| HB 137 Sectional Analysis v. A 2.10.2020.pdf |
HRES 2/19/2020 1:00:00 PM HRES 2/21/2020 1:00:00 PM |
HB 137 |
| HB 137 Resident Hunters of Alaska White Paper.pdf |
HRES 2/19/2020 1:00:00 PM HRES 2/21/2020 1:00:00 PM |
HB 137 |
| HB 137 Work Draft CS v. M 2.12.20.pdf |
HRES 2/19/2020 1:00:00 PM HRES 2/21/2020 1:00:00 PM |
HB 137 |
| HB 137 Fiscal Note - DFG-DWC 2.14.20.pdf |
HRES 2/19/2020 1:00:00 PM HRES 2/21/2020 1:00:00 PM |
HB 137 |
| HB 137 Fiscal Note - DFG-BBS 2.14.20.pdf |
HRES 2/19/2020 1:00:00 PM HRES 2/21/2020 1:00:00 PM |
HB 137 |
| HB 203 DEC Note 2.5.2020.pdf |
HRES 2/19/2020 1:00:00 PM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 203 HRES Testimony 2.19.2020.pdf |
HRES 2/19/2020 1:00:00 PM HRES 2/21/2020 1:00:00 PM |
HB 203 |
| HB 137 Testimony as of 2.18.2020.pdf |
HRES 2/19/2020 1:00:00 PM HRES 2/21/2020 1:00:00 PM |
HB 137 |