02/27/1995 01:30 PM Senate JUD

 SJUD - 2/27/95                                                                
                                                                               
           SB   3 ANTITRUST EXEMPTION FOR FISHERMEN                           
                                                                               
 SENATOR DUNCAN, sponsor of SB 3, read a sponsor statement to the             
 committee.  He noted the Senate passed an identical bill to SB 3              
 last year, however the measure did not reach the House floor for a            
 vote.  SB 3 allows commercial fishermen to form associations to               
 collectively negotiate raw or processed fish prices with                      
 processors, however it does not authorize processors to agree among           
 themselves.  It only covers collective bargaining between fishermen           
 and a processor or a group of processors.  SB 3 gives a state                 
 antitrust exemption as a first step, which is necessary to                    
 obtaining Congressional approval for a federal exemption.  SB 3               
 would stabilize Alaska's fishing industry.  SB 3 also removes                 
 ambiguities between state and federal laws.                                   
                                                                               
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 JERRY McCUNE, President of the United Fishermen of Alaska,                    
 testified in support of SB 3.  He commented that during a strike in           
 Bristol Bay, the processors were invited to discussions, however              
 under the Sherman Antitrust law, processors cannot collectively               
 gather to discuss prices, therefore they were unable to                       
 participate.                                                                  
                                                                               
 SENATOR TAYLOR expressed concern that the passage of SB 3 would               
 create a second step in which the processors will demand the same             
 exemption so that they can collectively gather to determine prices.           
 MR. McCUNE replied SB 3 forbids that practice, as does the federal            
 law.  He added the fishermen are the self employed individuals                
 bargaining with the industry.                                                 
                                                                               
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 SENATOR TAYLOR agreed, but pointed out that neither party can do              
 that under current law, therefore once one party is given the                 
 exemption, the other might request the same.  MR. McCUNE noted                
 processors can back out of negotiations and post a price.                     
                                                                               
 DORNE HAWXHURST, President of Cordova District Fishermen United               
 (CDFU), testified in support of SB 3.  She stated the CDFU supports           
 the measure for three reasons:  it clarifies ambiguities in                   
 existing state law; it evens the playing field for fishermen; and             
 it removes inconsistencies between federal and state laws.                    
                                                                               
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 ED CRANE testified on his own behalf in support of SB 3.  He                  
 emphasized the strength of his personal conviction resulting from             
 his many years of involvement in agribusiness.  He stated most                
 other states have an antitrust exemption and he felt SB 3 will help           
 to set the scene for changes necessary to the fishing industry as             
 they must have stability in supply and price to compete in world              
 food markets.  He commented adversarial relationships between                 
 harvesters and processors have to end, and SB 3 will help to make             
 that happen.                                                                  
                                                                               
 SENATOR TAYLOR asked Dwight Perkins and Dean Paddock if they were             
 opposed to SB 3.  Both replied negatively, and Mr. Paddock noted he           
 strongly supported SB 3.                                                      
                                                                               
 SENATOR GREEN moved SB 3 out of committee with individual                     
 recommendations.  There being no objection, the motion passed.