Legislature(2011 - 2012)BELTZ 105 (TSBldg)

03/14/2012 08:00 AM Senate EDUCATION


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 197 GRANT PROGRAM FOR SCHOOLS TELECONFERENCED
Moved CSSB 197(EDC) Out of Committee
+ HCR 18 COMMERCIAL FISHERIES PROGRAMS TELECONFERENCED
Moved CSHCR 18(FSH) am Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
              HCR 18-COMMERCIAL FISHERIES PROGRAMS                                                                          
                                                                                                                                
8:37:54 AM                                                                                                                    
CO-CHAIR  THOMAS announced  the  consideration of  HCR 18  [CSHCR
18(FSH)am was before the committee].                                                                                            
                                                                                                                                
8:38:15 AM                                                                                                                    
TIMOTHY CLARK,  Staff for Representative  Bryce Edgmon,  said HCR
18 was a resolution about  Alaska businesses and Alaska jobs that                                                               
supports the ambitions of young Alaskan fishery entrepreneurs.                                                                  
                                                                                                                                
He  said the  commercial fishing  industry is  among the  state's                                                               
largest  employers and  there  is plenty  of  potential for  more                                                               
Alaskans to  take part  in it  at the  most rewarding  levels. In                                                               
recent decades, the  mean age of commercial  fishing entry permit                                                               
owners has  increased from just more  than 40 years to  nearly 50                                                               
years of  age. This "greying of  the fleet" is happening  in part                                                               
because it's gotten a lot  harder for younger Alaskans to acquire                                                               
fish harvesting operations.                                                                                                     
                                                                                                                                
8:39:33 AM                                                                                                                    
MR. CLARK said these days,  young people face much higher hurdles                                                               
when  it  comes  to  financing,   and  the  cost  of  entry  into                                                               
commercial  fisheries  on  a   diversified  level  sufficient  to                                                               
provide a  satisfactory income  for a skipper  and crew  is often                                                               
more  than  $350,000. With  the  increase  of limited  entry  and                                                               
rationalized fisheries  in recent  decades, running  a successful                                                               
fishing  operation  requires  sharp business  management  skills,                                                               
financial literacy, and  the savvy to navigate  complex state and                                                               
federal regulatory systems.                                                                                                     
                                                                                                                                
8:40:43 AM                                                                                                                    
MR.  CLARK  said  HCR  18  calls on  the  legislature  to  become                                                               
involved with a  University of Alaska undertaking  to create ways                                                               
to  better  prepare  young Alaskans  for  these  challenges.  The                                                               
University of  Alaska Fisheries, Seafood and  Maritime initiative                                                               
began last June  when UA president, Patrick  Gamble, appointed an                                                               
18 member working group (Allied  Fisheries) to assess and enhance                                                               
the development  and delivery of programs,  courses, research and                                                               
information  that  meet  the employment  needs  of  the  fishery,                                                               
seafood  and maritime  industries. The  goals of  this initiative                                                               
also  include supporting  Alaskans, particularly  young Alaskans,                                                               
in discovering  and preparing  for the  wide range  of employment                                                               
opportunities in the fishing, seafood and maritime industries.                                                                  
                                                                                                                                
In  recent months,  the  initiative has  evolved  to include  the                                                               
participation  of  the  seafood industry,  community  development                                                               
quota groups,  and the Rasmussen  Foundation, among  others. It's                                                               
now time for the legislature to take part.                                                                                      
                                                                                                                                
HCR 18 calls for the Senate  President and the House Speaker each                                                               
to  appoint one  member from  their respective  bodies to  act as                                                               
liaisons  to  the  University's  initiative  and  report  to  the                                                               
legislature on the  initiative's progress. By the  end of January                                                               
next year,  these legislators will  make recommendations  on ways                                                               
the  legislature  can contribute  to  any  action plan  developed                                                               
through the initiative.                                                                                                         
                                                                                                                                
He said  support for HCR 18  is about enabling more  of our young                                                               
fishers  to step  from the  deck  into the  wheelhouse and  about                                                               
helping more Alaskans  into solid, skilled careers  in several of                                                               
our most important industries.                                                                                                  
                                                                                                                                
8:41:55 AM                                                                                                                    
SENATOR STEVENS asked if migration  of fleet ownership to outside                                                               
of Alaska is one of the  big issues in young people having access                                                               
to the industry.                                                                                                                
                                                                                                                                
MR. CLARK  answered that part  of the migration of  entry permits                                                               
does include fishermen  who began as resident  Alaskans and after                                                               
enjoying a certain degree of  success decided to leave the state,                                                               
but still continue to fish here.                                                                                                
                                                                                                                                
8:44:03 AM                                                                                                                    
SENATOR  STEVENS  commented  that  staying in  Alaska  is  not  a                                                               
punishment and  it is a shame  when the wealth leaves  the state.                                                               
It is important to help Alaskans stay in the state.                                                                             
                                                                                                                                
MR. CLARK  said the permit  holders are businessmen  and business                                                               
leaders in their communities and contribute to them.                                                                            
                                                                                                                                
8:45:31 AM                                                                                                                    
CO-CHAIR MEYER,  referring to back  material, said it  looks like                                                               
the Upper  Yukon gillnet fleet is  almost 60 years old  and asked                                                               
the difference between gear types.                                                                                              
                                                                                                                                
MR. CLARK answered that in some  regions a certain gear type will                                                               
be  more  profitable  and  therefore the  entry  permit  is  more                                                               
expensive   than   another   gear   type.   There   are   certain                                                               
inconsistencies, because  in some regions the  maritime geography                                                               
can  provide  an  advantage  to  a seiner  over  a  gill  netter.                                                               
Essentially, he explained,  in a drift gill  net fishery, someone                                                               
will set  a monofilament net  from the  stern of the  boat, drift                                                               
with  it for  a period  of time  and distance;  fish will  become                                                               
entangled in it and they will  real it back onto the boat picking                                                               
the fish out as they go.  A seine operation is more elaborate and                                                               
requires two  boats: the  mother ship and  a powerful  skiff that                                                               
tows  the  other  end  of  the seine  net.  Essentially  you  are                                                               
intercepting fish, closing  the ends of the net into  a purse and                                                               
then stacking  it gradually  on the  deck until  you end  up with                                                               
fish.                                                                                                                           
                                                                                                                                
8:48:34 AM                                                                                                                    
CO-CHAIR MEYER asked if seining  costs more than gill netting for                                                               
a new young person to get into.                                                                                                 
                                                                                                                                
MR.  CLARK  answered  that  Permits  are  valued  differently  in                                                               
different  regions.  For  example,  in  area  M,  on  the  Alaska                                                               
Peninsula, the seine permits are  valued less than the drift gill                                                               
net permits,  he conjectured mainly  because the features  of the                                                               
region  lend  overall greater  opportunities  to  drift gill  net                                                               
fishers, especially  on the north  peninsula where there  are few                                                               
capes and few geographical features  reaching into the sea that a                                                               
seiner could hook off of in  terms of predicting where fish would                                                               
make a  turn. Whereas a drift  gill net fisherman can  simply hug                                                               
the beach, just  nose his boat right onto the  sand, drop his net                                                               
and intercept fish that are swimming in very shallow water.                                                                     
                                                                                                                                
8:50:11 AM                                                                                                                    
CO-CHAIR MEYER  asked if families  pass these permits  onto their                                                               
siblings.                                                                                                                       
                                                                                                                                
MR. CLARK answered  that a great number of  permit transfers take                                                               
place family member to family  member, sometimes with money being                                                               
part of  the transaction. But  those are  only a fraction  of the                                                               
transfers. He  added that  other situations,  like the  return of                                                               
certain salmon stocks  in the Yukon region, can also  play a part                                                               
in the ages related to permit transfers.                                                                                        
                                                                                                                                
8:51:45 AM                                                                                                                    
SENATOR  STEVENS asked  if this  resolution really  addresses the                                                               
problem of young people in  Alaska becoming owners in the fishing                                                               
industry. What  they really  need is  financial assistance  if it                                                               
costs $350,000 to get in.                                                                                                       
                                                                                                                                
MR. CLARK answered  that the original version  of this resolution                                                               
was   more   ambitious   and  covered   financing   issues.   The                                                               
University's initiative that  has a great deal  of alignment with                                                               
the  education and  training side  of  the original  resolution's                                                               
goals came into  being just after this  resolution was introduced                                                               
last spring.  The financing side  of it rests more  squarely with                                                               
the Alaska State  government both in terms  of existing programs,                                                               
most  particularly the  Commercial Fishing  Revolving Loan  Fund,                                                               
which provides loans to Alaska  residents, only, for a variety of                                                               
fisheries  related expenditures  and  improvement  to those  loan                                                               
programs. Because  they exist in  statute, they are more  or less                                                               
the responsibility of the legislature.                                                                                          
                                                                                                                                
MR. CLARK said  the better the education  younger fishermen using                                                               
those existing programs have the  more it will help them navigate                                                               
what is  available to them  both from the Commercial  Fishing and                                                               
Agriculture  Bank and  through state  loan programs.  The fishing                                                               
industry, unlike some other industries  in the state, have a very                                                               
well-functioning  naturally occurring  apprenticeship program  in                                                               
that almost any  able bodied man or woman can  pound the docks in                                                               
any sizeable  port and talk their  way onto a boat  and be taught                                                               
how to do the work.                                                                                                             
                                                                                                                                
8:55:54 AM                                                                                                                    
FRED  VILLA,   Associate  Vice  President,   Workforce  Programs,                                                               
University of  Alaska Fairbanks,  stated support  for HCR  18. He                                                               
said the  two goals  of the  UA's initiative  are to  support and                                                               
enhance the economy  and the communities of  Alaska by developing                                                               
education  and  training  programs   that  support  a  responsive                                                               
workforce enabling  the fishing, seafood and  maritime industries                                                               
to stay vibrant and be  substantial contributors to the state, as                                                               
well as to  support those Alaskans, particularly  the young ones,                                                               
in preparing  for the wide  range of employment  opportunities in                                                               
the fishing, seafood and maritime industries.                                                                                   
                                                                                                                                
8:58:48 AM                                                                                                                    
MR. VILLA identified five clear  areas the initiative targets for                                                               
success:   one  is   to  allow   Alaskans  to   have  access   to                                                               
comprehensive training  and education  programs that  enable them                                                               
to  meet the  workforce needs  and take  advantage of  the career                                                               
opportunities. Secondly, to provide  a coordinated approach among                                                               
all levels of training and education  in the State of Alaska from                                                               
high  schools through  the university  campuses and  the regional                                                               
training centers including AVTEC.                                                                                               
                                                                                                                                
9:00:23 AM                                                                                                                    
MR.  VILLA said  they had  identified  five steps  to meet  their                                                               
goal. On  March 5 they  assembled nearly 70 high  stakes industry                                                               
employers  and leaders  to work  together to  establish a  mutual                                                               
understanding  of   the  benefits  and  value   of  industry  and                                                               
educational partnerships to meet  their business needs and goals.                                                               
They want  to share a  common language across  different industry                                                               
sectors  and  within individual  industry  sectors  as a  way  to                                                               
identify their  highest priorities and to  reach an understanding                                                               
of why  an industry  and occupational gap  analysis is  needed to                                                               
develop a workforce development plan  and they wanted to identify                                                               
key  groups  and  individuals  to   support  the  initiative.  To                                                               
accomplish this  whole initiative, they are  considering that the                                                               
initial group of 70 and  those that will participate further down                                                               
will be an advisory committee for the university and the state.                                                                 
                                                                                                                                
He said they are conducting  a training and educational inventory                                                               
of  the   University  and  regional  training   centers'  current                                                               
programs   while   concurrently    developing   an   occupational                                                               
inventory, which  would help them  create a gap  analysis showing                                                               
the gaps between  what the industry needs  and existing education                                                               
and training programs.                                                                                                          
                                                                                                                                
The  gap  analysis  will  help   them  develop  and  implement  a                                                               
workforce development  training plan in  Alaska. They are  in the                                                               
final   stages  of   reviewing  a   comprehensive  survey   using                                                               
Department of  Labor and  Workforce Development  (DOLWD) research                                                               
and analysis data from individual  employers throughout the state                                                               
on what  the occupations are  and what training is  available for                                                               
them, so they can  see where the gaps are. The  survey will be on                                                               
line.  Then  they  will  ask the  employers  what  their  highest                                                               
priorities are  and try to  address those needs working  with the                                                               
University system and regional training centers.                                                                                
                                                                                                                                
9:03:35 AM                                                                                                                    
JERRY  MCCUNE,  Lobbyist,  United Fisherman  of  Alaska,  Juneau,                                                               
supported the  approach in HCR  18. He said the  Allied Fisheries                                                               
is moving on the seafood employment  part of it mostly, but other                                                               
things in the  resolution will be helpful to young  men and women                                                               
fishermen.                                                                                                                      
                                                                                                                                
He  related that  Alaska Sea  Grant  put on  a Young  Fishermen's                                                               
Summit and six young men and  women from Cordova took part in it.                                                               
They learned  how to  write a  business plan and  how to  pay the                                                               
money back -  all very important because it costs  so much to get                                                               
into a fishery  now. In Cordova, for instance,  it costs $600,000                                                               
to $800,000 for  a seine operation and an average  of $250,000 to                                                               
$300,000  for a  gill  net  permit. You've  got  to  have a  plan                                                               
nowadays he said.                                                                                                               
                                                                                                                                
The people  who took  part in  this program  thought it  was very                                                               
useful  and  Mr.  McCune  thought   it  should  be  expanded.  He                                                               
explained that  two years  of experience are  needed in  order to                                                               
get  a  Division of  Investment  or  CFAB  loan; the  safety  and                                                               
navigation classes  are very useful,  too. He added that  set net                                                               
fisheries are almost 100 percent  residents and don't have a high                                                               
turnover. That is why the people  are older; they take their kids                                                               
out and  teach them how to  fish - especially in  the Yukon. It's                                                               
not worth it  for someone to go  up there and fish,  but it works                                                               
for the residents.                                                                                                              
                                                                                                                                
9:05:58 AM                                                                                                                    
MR. MCCUNE  said he thought 76  percent to 79 percent  of permits                                                               
are  held  by Alaskan  residents.  All  these programs  are  very                                                               
important. He  was impressed  that most of  the young  folks here                                                               
had already  gone to  college and  had a degree  in order  to get                                                               
into fishing. So, they have a backup plan, which is very good.                                                                  
                                                                                                                                
9:06:41 AM                                                                                                                    
CO-CHAIR  MEYER commented  that it  seems  like a  lot of  people                                                               
working in  the factories or  processing plants come not  so much                                                               
from other  states, but  other countries, and  he wanted  to know                                                               
how more of our young kids  could be attracted to "work the slime                                                               
line."                                                                                                                          
                                                                                                                                
9:07:17 AM                                                                                                                    
MR. MCCUNE  answered that back in  the 50s, all the  workers were                                                               
from  Alaskan  communities,  but   the  fisheries  are  a  bigger                                                               
industry now  and a bigger  work force is needed.  The processors                                                               
recruit in  Anchorage and everywhere they  can, but a lot  of the                                                               
jobs are  remote and long hours.  So 30 percent of  the workforce                                                               
is students from Russian and  other places with J1 permits, which                                                               
Congress might  do away with.  Then we  would be in  big trouble.                                                               
Frankly, he  said, a lot  of local  people don't want  those jobs                                                               
anymore and that most of the  young kids in Kodiak and Cordova go                                                               
fishing with their families.                                                                                                    
                                                                                                                                
9:09:15 AM                                                                                                                    
SENATOR STEVENS  said it  was interesting  to hear  that students                                                               
have gotten degrees  and then decide to move  into the fisheries.                                                               
More commonly, you worked for your  father. It seems like the big                                                               
problem  is people  getting into  the industry  and needing  some                                                               
educational help  in finance,  economics and how  to apply  for a                                                               
loan.  Many  of  the  students  they are  talking  about  at  the                                                               
University will  be adults  who are already  in the  industry and                                                               
need help moving up in it.                                                                                                      
                                                                                                                                
MR. MCCUNE  agreed and added  that the young folks  attending the                                                               
Summit told him  that they really needed the  classes on finances                                                               
and business. The seasons are up and down.                                                                                      
                                                                                                                                
CO-CHAIR MEYER asked what the seasons are.                                                                                      
                                                                                                                                
MR.  MCCUNE explained  that Sitka  herring starts  soon and  then                                                               
halibut would  open on April  19. The trollers fish  Kings early,                                                               
but the first major red run would  be May 15 in the Copper River;                                                               
most of the  other runs all kick  in in June. A  lot of Southeast                                                               
fisheries wind up with silvers  as late as mid-September. You can                                                               
fish May 15  to September 15 in Prince William  Sound. In Bristol                                                               
Bay, you fish for three weeks.                                                                                                  
                                                                                                                                
9:12:36 AM                                                                                                                    
SENATOR  FRENCH moved  to report  CSHCR 18(FSH)AM  from committee                                                               
with individual recommendations and attached zero fiscal note.                                                                  
                                                                                                                                
CO-CHAIR MEYER  announced that  without objection,  CSHCR 18(FSH)                                                               
am moved from the Senate Education Standing Committee.                                                                          

Document Name Date/Time Subjects
SB0197A.PDF SEDC 3/14/2012 8:00:00 AM
SB 197
CS SB 197.pdf SEDC 3/14/2012 8:00:00 AM
SB 197
SB 197 Sponsor Statement.pdf SEDC 3/14/2012 8:00:00 AM
SB 197
SB197-EED-TLS-2-29-12.pdf SEDC 3/14/2012 8:00:00 AM
SB 197
Taking Stock.pdf SEDC 3/14/2012 8:00:00 AM
SB 197
HCR018A.PDF SEDC 3/14/2012 8:00:00 AM
HCR 18
HCR018B.PDF SEDC 3/14/2012 8:00:00 AM
HCR 18
HCR018C.PDF SEDC 3/14/2012 8:00:00 AM
HCR 18
HCR018-1-2-021512-FSH-N.PDF SEDC 3/14/2012 8:00:00 AM
HCR 18
CSSB 197.pdf SEDC 3/14/2012 8:00:00 AM
SB 197