Legislature(2023 - 2024)GRUENBERG 120
04/23/2024 10:00 AM House FISHERIES
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| Audio | Topic |
|---|---|
| Start | |
| HR8 | |
| SCR10 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SCR 10 | TELECONFERENCED | |
| *+ | HR 8 | TELECONFERENCED | |
| + | TELECONFERENCED |
SCR 10-JOINT LEGIS SEAFOOD INDUSTRY TASK FORCE
10:35:52 AM
CHAIR VANCE announced that the final order of business would be
CS FOR SENATE CONCURRENT RESOLUTION NO. 10(FIN) AM, Establishing
the Joint Legislative Seafood Industry Task Force.
SENATOR GARY STEVENS, Alaska State Legislature, as the prime
sponsor, introduced CSSCR 10(FIN) AM. He pointed out that the
Seafood Industry Task Force would be created by the proposed
legislation. He discussed the background idea for this, which
came from the success of the Salmon Industry Task Force. He
pointed out that he was a member of this task force, which was
created in 2002. The Salmon Industry Task Force had addressed
how to raise the quality of salmon. For example, fishermen had
been helped with engine replacements and ice machine
installations.
SENATOR STEVENS stated that the proposed legislation would be an
effort to explore ways that the state could help the seafood
industry recover from "a terrible tailspin." He pointed out
that the seafood industry is the largest manufacturing sector in
the state, employing around 48,000 workers. He added that it is
also one of the largest sources of municipal revenue in 11
communities throughout the state. He remarked on several of the
economic and market headwinds, including depressed consumer
demand, a weakened U.S. currency, and international
overharvesting. To help turn the seafood industry around, he
said that the proposed task force would be an attempt to find
solutions at a state level, federal level, and in global
markets. He stated that the goal would be to have specific
bills for introduction by the beginning of next session.
10:39:41 AM
TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State
Legislature, on behalf of Senator Stevens, prime sponsor,
addressed CSSCR 10(FIN) AM. He stated that the proposed
resolution is an effort to put specifics on the table for the
task force to evaluate. He expressed the understanding that the
seafood industry is complex, with many moving parts. He
suggested that the task force would discuss many different
ideas. He noted that the proposed legislation was drafted
broadly so the task force would be represented by many different
stakeholders in the industry.
10:40:57 AM
REPRESENTATIVE CARPENTER, concerning the makeup of the task
force, expressed the understanding that there would be three
members from the seafood-processing sector and three harvesters.
He questioned whether a representative could be both a processor
and a harvester.
SENATOR STEVENS expressed agreement that this is possible. He
expressed the desire to have every aspect of the seafood
industry represented on the task force.
10:41:59 AM
REPRESENTATIVE HIMSCHOOT expressed the concern that the task
force would have six months to do the work; however, this
timeframe would be during prime fishing season. She questioned
whether a delineated structure could apply. She recommended
that anyone from the commercial sector, who felt he/she could do
the work, should be able to apply.
SENATOR STEVENS expressed acceptance to any ideas presented,
suggesting that the job would be done no matter who is at the
table. He added that this job would be ongoing through the
winter as well, as there should be some legislation to consider
by the beginning of next session.
10:43:21 AM
REPRESENTATIVE MCCABE suggested that the report be sent directly
to the U.S. trade ambassador or trade delegation, so this can be
included in the delegation's report. He expressed the
understanding that currently this report does not mention the
Alaska seafood industry.
SENATOR STEVENS concurred that the trade delegation needs to
know what is happening in Alaska.
10:45:51 AM
GREG SMITH, Communications Director, Alaska Seafood Marketing
Institute, provided invited testimony on CSSCR 10(FIN) AM. He
stated that while the seafood industry is used to having ebbs
and flows, the current situation is unprecedented. He added
that all species are under market pressure. He pointed out that
one of the reasons for this is the large size of the Russian
harvest combined with the lower value of Russia's currency. He
stated the list of economic challenges continues, with a
multitude of geopolitical obstacles that are effecting trade.
He addressed inflation, high interest rates, and the growth of
fixed expenses. He expressed the opinion that the industry is
resilient, but it is at a crossroads, and it needs a way of
vetting better ideas, with better courses of action. He
expressed support for the proposed legislation as a way to
investigate and collaborate with key stakeholders regarding new
opportunities for the long-term economic health of the seafood
industry in Alaska.
10:48:52 AM
TRACY WELCH, Executive Director, Lobbyist, United Fisherman of
Alaska (UFA), provided invited testimony on CSSCR 10(FIN) AM.
She stated that UFA is a statewide fishing trade association,
and it represents 36 different member groups participating in
state and federal fisheries. On behalf of UFA, she expressed
strong support for the proposed legislation. She commented on
the unprecedented challenges the state's seafood industry is
facing across the entire state. She stated that fishermen,
processors, workers, and communities are facing extremely low
prices, which is resulting in plant closures, lost markets,
barriers to business, and forgone fishing opportunities. This
in turn is effecting state and local tax revenues. She
estimated that the loss to the state's economy in 2023 was over
$2 billion. She expressed the opinion that the task force would
be an important mechanism for the industry and policy makers to
provide recommendations on legislative and administrative
actions. She stated that this should not just be an immediate
action, but a long-term vision for the industry.
10:51:40 AM
JULIE DECKER, President, Pacific Seafood Processors Association,
provided invited testimony on CSSCR 10(FIN) AM. She shared her
history in the seafood industry. On behalf of the Pacific
Seafood Processors Association, she expressed support for the
proposed legislation. She stated that the association
represents 11 major seafood processing companies, operating over
30 facilities in over 20 communities in Alaska. She summarized
that these companies buy millions of pounds of seafood from
fishermen in the state and send it to markets around the world.
She maintained that these companies are invested in the state
for the long term.
MS. DECKER noted that the Alaska seafood industry has not seen a
collapse such as this since the 1990s; however, this time the
collapse is across multiple species. She explained that in 2023
multiple economic and geopolitical factors occurred
simultaneously to create the environment today, with the
downturn still occurring. She mentioned the seafood processors
who do not expect to open in 2024, which will leave some
communities without markets and tax revenue. She stated that
there are systemic challenges to competitiveness and fairness
globally. She stated that the association has been advocating
for several state and federal actions; however, she suggested
that the challenges are larger than any one sector of the
industry or region in the state, and this downturn will affect
coastal communities and state revenue. She suggested that in
creating the task force, various stakeholders will be brought
together to focus on the economic challenges in the seafood
industry.
10:55:16 AM
BRIAN O'LEARY, Chief Operating Officer, OBI Seafoods, provided
invited testimony on CSSCR 10(FIN) AM. He shared his background
in the fishing industry in Alaska. He addressed the
unprecedented seafood market dislocation, with multiple seafood
species being affected simultaneously. On behalf of OBI, he
expressed support for the proposed legislation. He noted
coastal Alaska's heavy economic reliance on the seafood industry
and the state's fisheries. He expressed the opinion that the
dialogue created by the task force would help stabilize the
seafood industry. He discussed the success of the previous task
force created [in 2002] for the fishing industry in the state.
He remarked that Alaskans are resilient in tough conditions,
expressing the opinion that the state will find a way forward.
10:57:11 AM
CHAIR VANCE questioned Mr. Lamkin on the timeline for the
appointments to the task force. She questioned the anticipated
date the task force would begin its work.
MR. LAMKIN expressed the expectation that, with passage of the
resolution, work could begin as soon as May. Between this time
and May, he expressed the hope that interested stakeholders
would come forward, so the appointment process could begin even
before passage. He stated that the first organizational meeting
could be as soon as late May in Anchorage, followed by virtual
meetings throughout the interim. He noted that this was written
to keep the cost down. He stated that the plan is for a final
meeting in January to review the recommendations.
10:59:04 AM
REPRESENTATIVE CARPENTER referenced the representation of
coastal communities. He questioned which entities this refers
to, such as municipalities or Tribes.
MR. LAMKIN answered that it is open to either, as the intent
would be to keep it general, and this could include Western
Alaska quota holders, mayors, city councils, and others in rural
areas.
10:59:51 AM
CHAIR VANCE pointed to page 2, line 20, of CSSCR 10(FIN) AM,
which referenced ways to improve the coordination of harvesting,
processing, and marketing seafood. She questioned the intent
behind this.
MR. LAMKIN explained that this language was drafted and modeled
after the legislation passed in 2002, and this was duplicated
from that effort.
CHAIR VANCE expressed the idea that there should be more
communication between harvesters and processors. She referenced
the "outcry and confusion" around the price of fish in 2023.
She expressed the understanding that many fishermen felt that
they were not communicated with clearly. She stated that
expectations should be better communicated, along with the
anticipation of harvest goals. She pointed out that many
fishermen went into debt because they did not know how bad the
market was. She expressed the hope that the task force could
address this. She explained that if entities feel they are
partners in the global market, they will work harder to improve
the quality of fish. In this way fishermen may feel they will
be taken care of with the price of the fish, and their
confidence would be regained.
11:03:08 AM
CHAIR VANCE announced that CSSCR 10(FIN) AM was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HR 8 - Sponsor Statement.pdf |
HFSH 4/23/2024 10:00:00 AM |
HR 8 |
| HR 8 - v.A.pdf |
HFSH 4/23/2024 10:00:00 AM |
HR 8 |
| HR 8 - Supporting Document - Bycatch Utilization Subcommittee Report (04-16-24).pdf |
HFSH 4/23/2024 10:00:00 AM |
HR 8 |
| CSSCR 10 - Sponsor Statement.pdf |
HFSH 4/23/2024 10:00:00 AM |
SSCR10 |
| CSSCR 10 - version S.A.pdf |
HFSH 4/23/2024 10:00:00 AM |
SSCR10 |
| CSSCR10 - Summary of Changes S to S.A - 4.22.24.pdf |
HFSH 4/23/2024 10:00:00 AM |
SSCR10 |
| CSSCR 10 - Support Letter PSPA 3.25.24.pdf |
HFSH 4/23/2024 10:00:00 AM |
SSCR10 |
| CSSCR 10 - Fiscal Note LAA 4.19.24.pdf |
HFSH 4/23/2024 10:00:00 AM |
SSCR10 |