Legislature(2003 - 2004)

04/19/2004 09:05 AM House FSH

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
SB 347 - COMM. FISHING MORATORIA, INCL. AK GULF                                                                               
                                                                                                                                
Number 0045                                                                                                                     
                                                                                                                                
CHAIR SEATON announced  that the only order of  business would be                                                               
CS FOR  SENATE BILL NO.  347(RES), "An Act relating  to moratoria                                                               
on  entry  of  new  participants or  vessels  into  a  commercial                                                               
fishery; relating  to vessel permits  for, and  the establishment                                                               
of  a moratorium  on entry  of new  vessels into,  state Gulf  of                                                               
Alaska  groundfish  fisheries;  and providing  for  an  effective                                                               
date."   [Before  the committee  was a  proposed House  committee                                                               
substitute  (HCS) for  SB  347,  version 23-LS1677\W,  Utermohle,                                                               
4/13/04, which was adopted as a work draft on 4/14/04.]                                                                         
                                                                                                                                
CHAIR  SEATON noted  that members'  packets  also include  [other                                                               
proposed  House committee  substitutes  for SB  347, Version  23-                                                               
LS1677\U, Utermohle, 4/2/04,  and Version 23-LS1677\X, Utermohle,                                                               
4/16/04];  "the  rational  that  were  used  for  the  hair  crab                                                               
fishery";  a  proposed  amendment  changing  the  time  frame  in                                                               
Section 4 to  one year; some intent  language from Representative                                                               
Ogg;  and "a  letter to  consider  for the  Board of  [Fisheries]                                                               
relating to the jig fisheries."                                                                                                 
                                                                                                                                
Number 0161                                                                                                                     
                                                                                                                                
REPRESENTATIVE GARA  moved to adopt the  proposed House committee                                                               
substitute  (HCS) for  SB  347,  Version 23-LS1677\U,  Utermohle,                                                               
4/2/04 as the work draft.                                                                                                       
                                                                                                                                
Number 0172                                                                                                                     
                                                                                                                                
REPRESENTATIVE WILSON objected.                                                                                                 
                                                                                                                                
CHAIR SEATON  remarked that the  committee has three  versions of                                                               
the  bill to  consider:   "The  first version  is a  vessel-based                                                               
version;  the   second  version  is   [Version  X]  which   is  a                                                               
combination  of  vessel and  permits,  establishes  a new  vessel                                                               
permit  and  moratorium on  that  vessel  permit; and  the  third                                                               
version, [Version U], is a  moratorium bill utilizing the current                                                               
limited entry interim-use  permits [IUPs]."  He  then referred to                                                               
a handout outlining the fisheries in  each area that do not close                                                               
due to not having been fully utilized.                                                                                          
                                                                                                                                
Number 0296                                                                                                                     
                                                                                                                                
HERMAN M.  SAVIKKO, Fishery Biologist  III, Alaska  Department of                                                               
Fish & Game  (ADF&G), indicated that the ADF&G  biologists in the                                                               
Central   and  Westward   regions  provided   the  aforementioned                                                               
information.   He went on  to note  that the state  manages black                                                               
and  blue  rockfish, pollock,  and  -  in  the Central  region  -                                                               
lingcod.  In recent years,  these fisheries in the Central region                                                               
have typically  attained their  guideline harvest  levels (GHLs).                                                               
In the Westward region, though,  the ADF&G does not specify GHLs;                                                               
instead  it  looks at  traditional  average  catches and  manages                                                               
toward  that long-term  average,  and this  determines whether  a                                                               
fishery is  healthy.   He also mentioned  that for  the "parallel                                                               
fisheries," those that begin in  January - cod, pollock, shallow-                                                               
water flatfish, and [demersal shelf]  rockfish, for example - the                                                               
ADF&G  has concurrent  management  with  the federal  government;                                                               
these  fisheries, in  recent years,  have  either attained  their                                                               
specified total  allowable catches (TACs) or  were constrained by                                                               
halibut bycatch.   He  remarked that skates  and sharks  were, up                                                               
until the 2003, considered one fishery.                                                                                         
                                                                                                                                
MR. SAVIKKO, in response to a  question, said that there has been                                                               
very little interest  shown in the Pacific cod  fishery in Prince                                                               
William  Sound,  and surmised  that  this  could  be due  to  the                                                               
difficulty of  harvesting that kind  of fish in that  area and/or                                                               
market considerations.  All other  fisheries in that area, except                                                               
for lingcod,  had either reached  their GHLs or  were constrained                                                               
as bycatch only.  In response  to further questions, he said that                                                               
the  lingcod, Pacific  cod, and  pollock fisheries  are the  only                                                               
ones  that are  separately managed  in the  Prince William  Sound                                                               
area by  ADF&G biologists, and  that pollock reached its  GHL but                                                               
Pacific cod and lingcod did not.                                                                                                
                                                                                                                                
REPRESENTATIVE HEINZE asked for clarification.                                                                                  
                                                                                                                                
MR. SAVIKKO  relayed that  in a specific  fishery -  "and, again,                                                               
I'm talking from zero to  three miles, of direct state management                                                               
during a state  season" - biologists would  have established some                                                               
target allowance for  poundage that they felt  the resource could                                                               
handle.   Meanwhile, the fishermen would  register their vessels,                                                               
come  in and  fish, and  the  fishery would  be assessed  through                                                               
sampling  programs or  observer coverage.   Then,  when fishermen                                                               
attained that target  allowance, the fishery would  be shut down.                                                               
He noted that  when a fishery goes to a  bycatch status, it means                                                               
that a sufficient number of that  type of fish has been obtained,                                                               
and so  only a  certain percentage  of that type  of fish  can be                                                               
part of the  total catch of a vessel with  another fishery as its                                                               
target.                                                                                                                         
                                                                                                                                
REPRESENTATIVE HEINZE  asked why information  regarding fisheries                                                               
would be treated as confidential.                                                                                               
                                                                                                                                
MR.  SAVIKKO  said  that  any  time there  are  fewer  than  four                                                               
participants  in an  area, it  is the  ADF&G's policy  to protect                                                               
those participants'  data; to that  end, identifiers  are removed                                                               
and the data is summarized.                                                                                                     
                                                                                                                                
CHAIR  SEATON mentioned  that  the  legislature, before  limiting                                                               
entry in to  certain fisheries, is attempting to get  a handle on                                                               
which fisheries are not fully utilized.                                                                                         
                                                                                                                                
Number 1047                                                                                                                     
                                                                                                                                
KEVIN C.  DUFFY, Commissioner, Alaska  Department of Fish  & Game                                                               
(ADF&G), mentioned  that he is  also the state  representative on                                                               
the  North  Pacific  Fishery   Management  Council  [NPFMC],  six                                                               
members  of which  are  Alaskans.   He  stated  that  he is  very                                                               
interested in  protecting and promoting  the state's  interest in                                                               
all Alaska's fisheries and federal fisheries.  He added:                                                                        
                                                                                                                                
     We  want to  provide sustainable  resources and  viable                                                                    
     fisheries  to  support  our fisherman  in  our  coastal                                                                    
     communities, and  we want to develop  fisheries systems                                                                    
     that   do  that   -   specifically,  ...   [increasing]                                                                    
     efficiencies   resulting  in   economic  benefits   and                                                                    
     stability,    improving    safety,   improving    stock                                                                    
     conservation,  reducing  bycatch  where  necessary  and                                                                    
     controlling    incidental   catches,    reducing   gear                                                                    
     conflicts, and ... providing  entry-level access to our                                                                    
     fisheries off Alaska's shores.                                                                                             
                                                                                                                                
     [The] moratorium concept is intended  to address what I                                                                    
     consider  to be  some  potential  long-term threats  to                                                                    
     state-water  groundfish fisheries.  ... As  Mr. Savikko                                                                    
     ...  just  testified  about   a  number  of  groundfish                                                                    
     fisheries in the [Gulf of  Alaska (GOA)], we are either                                                                    
     reaching  our TACs  or our  [GHLs]; that's  because the                                                                    
     harvesters,  through   time,  become   more  efficient,                                                                    
     especially in  the [Pacific] cod fisheries  ....  There                                                                    
     are impacts resulting  from the federal rationalization                                                                    
     process that  we're going through, in  [GOA] groundfish                                                                    
     [fisheries] and, ...  depending on how we do  it in the                                                                    
     federal  fisheries,  this can  free  up  effort in  the                                                                    
     "zero  to three  miles," which  [are] the  state-waters                                                                    
     fisheries.                                                                                                                 
                                                                                                                                
Number 1242                                                                                                                     
                                                                                                                                
COMMISSIONER DUFFY continued:                                                                                                   
                                                                                                                                
     There're also  other [NPFMC] actions going  on that are                                                                    
     crossover issues  in state  and federal  fisheries; ...                                                                    
     some of these, what  we consider constraints or threats                                                                    
     to the  state-waters, are  real but  they're oftentimes                                                                    
     difficult to quantify.  And  I know that your committee                                                                    
     has spent  a lot  of time, within  the confines  of the                                                                    
     draft  moratorium  piece   of  legislation,  trying  to                                                                    
     address  some  of  these   issues,  and  hopefully  the                                                                    
     [ADF&G] has  been very responsive  to your  data needs,                                                                    
     and  we will  commit  to [continuing]  to provide  that                                                                    
     information.                                                                                                               
                                                                                                                                
     [Senate Bill] 347, [the  version] limiting vessels only                                                                    
     while leaving  (indisc.) individuals  free to  come and                                                                    
     go during  a moratorium is still  our preferred choice;                                                                    
     we think  it most effectively limits  the potential for                                                                    
     growth,  but  in  the interest  of  compromise  and  to                                                                    
     address  those  that  are  concerned  about  particular                                                                    
     viewpoints,  we are  willing to  look at  other options                                                                    
     and  are  looking  at  a vessel-based  as  well  as  an                                                                    
     individual-based [method].                                                                                                 
                                                                                                                                
     [With regard  to] the  moratorium concept  itself, it's                                                                    
     important to  remember that the Board  of Fisheries ...                                                                    
     [and]   a  number   of  members   of  the   public  ...                                                                    
     established a  formal "Gulf  Rationalization Committee"                                                                    
     to advise  the Board of  Fisheries; this is made  up of                                                                    
     constituents [with] varied  interests across the [GOA].                                                                    
     I  think  they  had  a  series  of  approximately  four                                                                    
     meetings, in working with the  Board of [Fisheries], to                                                                    
     talk  about -  timing-wise, as  we rationalize  federal                                                                    
     fisheries  - what  options  do we  have  in the  state-                                                                    
     waters   fisheries   to   try  and   make   those   two                                                                    
     rationalized  schemes work  together as  effectively as                                                                    
     possible.                                                                                                                  
                                                                                                                                
     [I] think  the committee  did a lot  of good  work, and                                                                    
     they came to a conclusion  that a moratorium was a good                                                                    
     concept to have in place  in terms of moving forward in                                                                    
     the federal  process as well  as [in]  the state-waters                                                                    
     process.   The concept they  came up with was  to leave                                                                    
     the jig  fisheries exempted as  part of  the moratorium                                                                    
     in order to provide  entry-level opportunity.  While we                                                                    
     recognize  this puts  them at  some  risk of  increased                                                                    
     effort,  we also  believe  the  jig fishery  represents                                                                    
     some long-term opportunities for ... Alaska.                                                                               
                                                                                                                                
Number 1430                                                                                                                     
                                                                                                                                
COMMISSIONER DUFFY went on to say:                                                                                              
                                                                                                                                
     The  [NPFMC]  itself ...  has  constructed  a range  of                                                                    
     alternatives  for  the  federal fisheries,  looking  at                                                                    
     rationalizing the  groundfish fisheries;  our timeframe                                                                    
     at  this  point,  in  terms   of  reaching  [an  NPFMC]                                                                    
     preferred alternative  for the  federal rationalization                                                                    
     program in the [GOA],  is currently slated for December                                                                    
     of '04.  We will  probably have ... a detailed analysis                                                                    
     of the  options available this summer,  and the [NPFMC]                                                                    
     will then  address these  issues and  see if  there are                                                                    
     any other [modifications] to  the range of alternatives                                                                    
     ...  at the  October  [NPFMC] meeting.    So the  point                                                                    
     being that  the federal  ... [NPFMC] process  is moving                                                                    
     forward on rationalization.                                                                                                
                                                                                                                                
     Once the [NPFMC] decides, in  December of '04, it would                                                                    
     probably  be somewhere  in the  neighborhood of  a year                                                                    
     and  a  half  -  ballpark- to  develop  the  regulatory                                                                    
     structure  under the  federal  system  that would  then                                                                    
     implement whatever  system we establish in  the federal                                                                    
     system.   In the federal rationalization  program we're                                                                    
     looking at a  range of alternatives from  status quo to                                                                    
     [an Individual  Fishery Quota (IFQ)] type  fishery to a                                                                    
     straight co-op fishery,  and then there's modifications                                                                    
     in  between  there.    What  we  are  not  looking  at,                                                                    
     specifically in  the [GOA], is  something we did  do in                                                                    
     [the] Bering  Sea crab rationalization for  a whole set                                                                    
     of other  reasons, and that is  specifically processors                                                                    
     shares in  the [GOA] - that  is not on the  table as an                                                                    
     option under [GOA] rationalization.                                                                                        
                                                                                                                                
COMMISSIONER DUFFY concluded:                                                                                                   
                                                                                                                                
     On behalf  of [the ADF&G]  and the Board  of Fisheries,                                                                    
     [which  has] put  a lot  of work  into this  issue, I'd                                                                    
     like to  thank you  for your  hard work  and diligence;                                                                    
     this   is  important   to   Alaska   and  our   coastal                                                                    
     communities, and  we recognize that  and we want  to be                                                                    
     helpful in  this process.   Having  said that,  I would                                                                    
     encourage the committee  to decide on a  version of the                                                                    
     legislation that  you all think is  appropriate at this                                                                    
     point, and  to allow  the deliberative process  to move                                                                    
     forward  on   this  [GOA]  rationalization   and  [GOA]                                                                    
     moratorium  you're considering.  ... I  would encourage                                                                    
     you  to contact  me if  you ever  have questions  about                                                                    
     what  we're  doing  in  the  federal  fishery;  we  are                                                                    
     available to provide any type  of information you need,                                                                    
     ... [and]  hopefully my  staff is  being as  helpful as                                                                    
     possible in  providing timely information.   Thank you,                                                                    
     Mr. Chairman.                                                                                                              
                                                                                                                                
Number 1597                                                                                                                     
                                                                                                                                
CHAIR SEATON surmised that the goal is to institute procedures                                                                  
that fully utilize GHLs each year.                                                                                              
                                                                                                                                
COMMISSIONER DUFFY concurred, and added:                                                                                        
                                                                                                                                
     In the Board of [Fisheries]  process, they came up with                                                                    
     a range  of alternatives they  were looking at  for the                                                                    
     future    of   state-water    fisheries   under    this                                                                    
     rationalization program,  and those three  options have                                                                    
     been incorporated  into the federal analysis  so [that]                                                                    
     as the  federal system  moves forward,  they understand                                                                    
     what the range  of alternatives are on  the state side.                                                                    
     ...  In our  set  of alternatives,  we  are looking  at                                                                    
     future  fisheries  that   capture,  historically,  what                                                                    
     we've  harvested  in  the  state-water  fishery;  we're                                                                    
     looking  at options  that  capture, historically,  what                                                                    
     has  been harvested  in  the  state-water fisheries  as                                                                    
     well as  [in] the parallel  fisheries; and we  are also                                                                    
     looking  at  an option  for  expansion  of the  state's                                                                    
     share  of  the  groundfish resources  in  state  waters                                                                    
     under  state management  as we  move  forward. ...  Our                                                                    
     intent is  to provide  not only  historic participation                                                                    
     but  also,  through our  management  and  the Board  of                                                                    
     [Fisheries]  process,  to   ...  provide  for  expanded                                                                    
     opportunity in the state-waters fisheries.                                                                                 
                                                                                                                                
REPRESENTATIVE GARA asked whether the moratorium is needed for                                                                  
conservation reasons, or whether the ADF&G already has adequate                                                                 
tools outside the context of a moratorium.                                                                                      
                                                                                                                                
COMMISSIONER DUFFY replied:                                                                                                     
                                                                                                                                
     We have  adequate tools in  our authorities  to address                                                                    
     all the  conservation issues in  [the GOA].   There are                                                                    
     some species,  obviously, that we don't  know that much                                                                    
     about, and we want to make  sure that for some of these                                                                    
     miscellaneous species, we're not  over harvesting.  But                                                                    
     the  concept   of  a  moratorium,  as   part  of  [GOA]                                                                    
     rationalization, we think has  the ancillary benefit of                                                                    
     providing  some   constraints  in  growth,   which,  by                                                                    
     definition,  would help  us have  that greater  comfort                                                                    
     level relative to the conservation  issues.  So I think                                                                    
     the  primary  issue is,  controlling  growth  to get  a                                                                    
     snapshot  of participants  as part  of rationalization.                                                                    
     But if we have that  opportunity, through a moratorium,                                                                    
     to  control that  growth, it  will also  have ancillary                                                                    
     conservation benefits.                                                                                                     
                                                                                                                                
Number 1789                                                                                                                     
                                                                                                                                
COMMISSIONER DUFFY, in response to questions, said:                                                                             
                                                                                                                                
     I operate  under the assumption  that all  fishermen in                                                                    
     state waters, unless  identified otherwise, participate                                                                    
     in  a   legal  fashion   in  their  fisheries   and  do                                                                    
     everything  they can  to comply  with the  conservation                                                                    
     requirements and  any enforcement requirements  as well                                                                    
     as onboard  observers in certain circumstances.   So we                                                                    
     are not worried about ...  illegal catch. ... The issue                                                                    
     for  us is,  as  you get  additional participation  and                                                                    
     [GHLs] remain  static, then, by definition,  the pie is                                                                    
     divided up into  smaller pieces.  So  through time what                                                                    
     you get  is a  less economically  viable fishery  for a                                                                    
     number  of participants,  and that's  ... an  important                                                                    
     issue to address through a moratorium.                                                                                     
                                                                                                                                
COMMISSIONER DUFFY, in response to  a further question, said that                                                               
a  moratorium   could  potentially  prevent   federally  licensed                                                               
vessels  that  do  not   currently  participate  in  state-waters                                                               
fisheries from harvesting fish in state waters.                                                                                 
                                                                                                                                
REPRESENTATIVE  WILSON asked  whether this  could result  in more                                                               
competition among "moratorium vessels."                                                                                         
                                                                                                                                
COMMISSIONER DUFFY said he wouldn't  agree that such would be the                                                               
case.  He offered:                                                                                                              
                                                                                                                                
     I  think what  we've  got right  now  under status  quo                                                                    
     [are]  defined  harvest  levels that  fluctuate  mildly                                                                    
     depending  on abundance  and  the  opportunity for  new                                                                    
     participants  to come  in.   So there's  already a  ...                                                                    
     "race" for fish, with an  inability to constrain growth                                                                    
     of participants.  Through a  moratorium, you would have                                                                    
     the  same amount  of biomass  being harvested,  but you                                                                    
     would be defining  the players in that arena.   So it's                                                                    
     a protective  mechanism, to try [to]  ... protect those                                                                    
     participants through a moratorium.                                                                                         
                                                                                                                                
REPRESENTATIVE  WILSON asked  whether, if  the moratorium  limits                                                               
vessels, those vessels that currently operate outside the three-                                                                
mile  limit would  be  excluded from  participating  in a  state-                                                               
waters fishery.                                                                                                                 
                                                                                                                                
Number 1974                                                                                                                     
                                                                                                                                
COMMISSIONER  DUFFY  explained  that there  are  some  [federally                                                               
licensed] vessels  that do currently participate  in the parallel                                                               
fishery,  and  so putting  a  moratorium  in place  would  simply                                                               
preclude additional  entrance into  the fishery through  a period                                                               
of  time.   He said  he expects  that through  rationalization of                                                               
state-waters  fisheries by  the Board  of Fisheries,  vessel size                                                               
and types  of gear will  be determined, and this  criteria could,                                                               
through time, work to further  constrain participants and provide                                                               
more opportunity for some of  the coastal communities and smaller                                                               
vessels  that  typically  come  out of  those  communities.    In                                                               
response  to  a question  of  whether  a vessel-based  moratorium                                                               
would be  used to keep  as many [federally licensed]  vessels out                                                               
of state  waters as  possible, he explained  that in  the federal                                                               
fishery,   the   Magnuson-Stevens    Fishery   Conservation   and                                                               
Management  Act is  in effect,  and so  there are  certain issues                                                               
that must  be dealt with;  for example, there  are a total  of 10                                                               
national   standards   including   not   discriminating   against                                                               
nonresidents and protecting coastal communities.                                                                                
                                                                                                                                
COMMISSIONER  DUFFY  reiterated  that a  vessel-based  moratorium                                                               
would prevent  an increase in participation,  whereas leaving the                                                               
fishery open also leaves open  the question of how many fishermen                                                               
currently  participating  in  the  federal  waters  could  merely                                                               
register with the state and then  come into state waters and thus                                                               
create more competition.                                                                                                        
                                                                                                                                
REPRESENTATIVE WILSON  asked for  a more detailed  description of                                                               
the differences between the proposed committee substitutes.                                                                     
                                                                                                                                
CHAIR SEATON instead  referred to a handout  in members' packets,                                                               
and  offered  his  interpretation  of  the  information  included                                                               
therein.    He suggested  that  a  vessel-based moratorium  could                                                               
create  an  incentive  for vessel  owners  who  aren't  currently                                                               
fishing in  a particular fishery  to start participating  just so                                                               
as to qualify, under a "historic" criterion, in the moratorium.                                                                 
                                                                                                                                
REPRESENTATIVE HEINZE  asked Commissioner  Duffy what  version he                                                               
would be happiest with.                                                                                                         
                                                                                                                                
COMMISSIONER   DUFFY  said   he  would   prefer  a   vessel-based                                                               
moratorium  but  would consider  other  options  in a  spirit  of                                                               
compromise.                                                                                                                     
                                                                                                                                
Number 2440                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HEINZE  said she  would  like  to understand  the                                                               
differences between Version U and Version X.                                                                                    
                                                                                                                                
CHAIR SEATON  offered his understanding  that Version  U pertains                                                               
to  permits only  - "entry  permits, interim-use  permits" -  and                                                               
does not "work with vessels."   Version X and the original SB 347                                                               
create a new license - a vessel permit.                                                                                         
                                                                                                                                
COMMISSIONER DUFFY  said that  a two-part  approach -  looking at                                                               
both  vessels and  individuals -  seems to  make sense  given the                                                               
committee's concerns.                                                                                                           
                                                                                                                                
CHAIR  SEATON asked  whether a  moratorium based  on the  current                                                               
permitting system would be acceptable to the state.                                                                             
                                                                                                                                
COMMISSIONER DUFFY said  such would be acceptable,  but a vessel-                                                               
based moratorium  would be more  acceptable because it  will make                                                               
for a smaller field of participants.   He added that the state is                                                               
also willing to look at a person-based moratorium.                                                                              
                                                                                                                                
REPRESENTATIVE GUTTENBERG  asked whether  the [NPFMC]  is waiting                                                               
for the state  to decide what kind of moratorium  to put in place                                                               
before it moves forward.                                                                                                        
                                                                                                                                
COMMISSIONER DUFFY said the [NPFMC]  is not waiting for the state                                                               
to  act first.   He  relayed that  the federal  system is  moving                                                               
forward  in  terms  of  developing  an  analysis  independent  of                                                               
moratorium  issues,  though  it  is   aware  that  the  Board  of                                                               
Fisheries has a set of  findings and has recommended a moratorium                                                               
to the  legislature.   In response to  another question,  he said                                                               
that  it is  up to  the state  to determine  how a  moratorium in                                                               
state waters  is shaped, via  legislative and Board  of Fisheries                                                               
participation, and  the federal rationalization process  will not                                                               
overturn or preempt it.                                                                                                         
                                                                                                                                
Number 2754                                                                                                                     
                                                                                                                                
COMMISSIONER DUFFY,  in response to further  questions, said that                                                               
it is his  understanding that in some  cases, federally permitted                                                               
vessels  have   turned  in  their   federal  permits   -  License                                                               
Limitation Program (LLP)  - and this has allowed them  to come in                                                               
and participate in a state-waters  fisheries.  He reiterated that                                                               
the Board  of Fisheries  will be able  to determine  criteria for                                                               
vessel size and type and type of gear.                                                                                          
                                                                                                                                
CHAIR  SEATON said  that one  concern he  has heard  expressed is                                                               
that federal rationalization will remove seasonal constraints.                                                                  
                                                                                                                                
COMMISSIONER DUFFY said that although  season lengths could vary,                                                               
there  will always  be some  sort  of seasonal  constraints.   He                                                               
again pointed out  that without a moratorium in  place, the field                                                               
of participants will  continue to expand.  Though  some may argue                                                               
that  creating a  moratorium  will  cause people  to  rush in  to                                                               
participate, there is  already a race for fish;  he remarked that                                                               
his hope is  that a moratorium will create  "a stand-down period"                                                               
wherein  people who  do come  in and  fish during  the moratorium                                                               
period might  not in  fact qualify,  depending on  the qualifying                                                               
years.   In response to  another question, he explained  that the                                                               
groundfish fishery  in Cook Inlet  consists of cod, and  that the                                                               
GHL for that fishery is being reached.                                                                                          
                                                                                                                                
Number 2918                                                                                                                     
                                                                                                                                
CHERYL  SUTTON, Staff  to the  Joint Legislative  Salmon Industry                                                               
Task Force, Alaska State Legislature,  spoke on behalf of Senator                                                               
Ben Stevens, chair of the  Joint Legislative Salmon Industry Task                                                               
Force  and  sponsor of  the  bill  by  request  of the  Board  of                                                               
Fisheries, the North Pacific  Fishery Management Council (NPFMC),                                                               
the Alaska Department of Fish  & Game (ADF&G), and the Commercial                                                               
Fisheries Entry Commission (CFEC).   She relayed that Senator Ben                                                               
Stevens's  preference is  to have  CSSB 347(RES),  which provides                                                               
for  a  vessel-based  moratorium,   be  the  vehicle  that  moves                                                               
forward;  in  the  spirit of  compromise,  however,  Senator  Ben                                                               
Stevens would support a  vessel- and participant-based moratorium                                                               
as proposed in  Version X.  She relayed that  Senator Ben Stevens                                                               
would  also  support "a  more  recent  qualifying period,"  which                                                               
would  address   a  "recency"  concern   brought  forth   by  the                                                               
Commercial Fisheries  Entry Commission  (CFEC), and  not allowing                                                               
moratorium activity  to count towards any  permanent program that                                                               
may be adopted.                                                                                                                 
                                                                                                                                
TAPE 04-24, SIDE B                                                                                                            
Number 2960                                                                                                                     
                                                                                                                                
MS. SUTTON relayed  that Senator Ben Stevens would  not support a                                                               
solely participant-based  moratorium.  In response  to questions,                                                               
she reiterated her understanding that  Version X is a combination                                                               
of vessel- and participant-based moratorium.                                                                                    
                                                                                                                                
REPRESENTATIVE GARA asked  how one would qualify  for a permanent                                                               
program if  participation in the  moratorium won't  count towards                                                               
historical criterion.                                                                                                           
                                                                                                                                
MS.  SUTTON   suggested  that  the  Commercial   Fisheries  Entry                                                               
Commission and the ADF&G could better address that question.                                                                    
                                                                                                                                
Number 2751                                                                                                                     
                                                                                                                                
ED DERSHAM, Chair,  Board of Fisheries, said he  concurs with the                                                               
comments of  Commissioner Duffy and  Ms. Sutton.  From  the Board                                                               
of  Fisheries'  perspective,  "this"  is only  partly  about  the                                                               
"timeout,"  only partly  about  controlling  efforts during  this                                                               
period while  rationalization is considered;  more significantly,                                                               
for the  Board of  Fisheries' process,  this is  about encircling                                                               
the participants  and getting  a handle  on who  they are  at the                                                               
current time  under a  moratorium.   Doing so  will open  up more                                                               
options for  the Board of Fisheries  to consider as it  reacts to                                                               
the federal rationalization program.                                                                                            
                                                                                                                                
MR. DERSHAM, using the cod fishery as an example, said:                                                                         
                                                                                                                                
     In  the  state waters  in  cod,  we have  the  parallel                                                                    
     fishery  that takes  place in  state waters  during the                                                                    
     federal fishery,  and we have [a]  separate state-water                                                                    
     with pots and  jigs that occurs in  a different season.                                                                    
     In the  federal fishery we have  pots, jigs, longlines,                                                                    
     and, in  some areas  of the  [GOA], trawl.   So  if the                                                                    
     Board [of Fisheries] does not  have a way of encircling                                                                    
     the  participants,  if  there's not  a  moratorium,  if                                                                    
     there's not a looking  towards something that encircles                                                                    
     the participants,  our options are very  limited in our                                                                    
     reaction.                                                                                                                  
                                                                                                                                
     We have our "time,  area, method, means" authority that                                                                    
     we  use ...  [but], in  state waters,  we ...  couldn't                                                                    
     even stand  pat; we couldn't  just stand back  and say,                                                                    
     "We're going to  continue to do what we've  done in the                                                                    
     past,"   because  that   wouldn't  be   possible  under                                                                    
     rationalization because  our state-water  fisheries now                                                                    
     don't  open  up  until  the  parallel  fishery  in  the                                                                    
     federal fishery  end.  Well, they  wouldn't necessarily                                                                    
     end  under a  rationalized  federal  side, because  the                                                                    
     whole idea  is to  slow down the  pace of  the fishery.                                                                    
     So our  options would  pretty much  be limited  to just                                                                    
     [a] state-water  fishery with pots and  jigs; longlines                                                                    
     would be very  difficult to have in  state waters under                                                                    
     our current  authority because we  wouldn't be  able to                                                                    
     apportion  the bycatch  that's now  apportioned to  the                                                                    
     longline  fishermen that  participate  in state  waters                                                                    
     through the federal side.                                                                                                  
                                                                                                                                
Number 2673                                                                                                                     
                                                                                                                                
     And we  wouldn't be  able to limit  the entry  into the                                                                    
     state waters  of other longline fishermen  that haven't                                                                    
     [participated]  in the  parallel  fishery  in the  past                                                                    
     without the moratorium.  So  we would have very limited                                                                    
     options.  ...  But ...  it's  possible,  as we  explore                                                                    
     this, that the best results  for the state ... might be                                                                    
     something  under very  limited  options.   It might  be                                                                    
     something very  much like enlarging our  current state-                                                                    
     water fishery,  but it  also might  not, because  as we                                                                    
     try to use our allocation  criteria, which includes the                                                                    
     effect  on the  economies of  the state  and the  local                                                                    
     communities involved  - the coastal communities  here -                                                                    
     we  need  to  look  at  the  economic  efficiency  that                                                                    
     Commissioner Duffy alluded  to and try to  design ... a                                                                    
     fairly complicated  but wide  ranging array  of options                                                                    
     that might  include [a] fairly significant  jig fishery                                                                    
     open to entry.                                                                                                             
                                                                                                                                
     It  might  include  ...  the  other  gear  types  under                                                                    
     something other  than "open to  entry," with  a mixture                                                                    
     of allocations  to different  size vessels;  that would                                                                    
     protect  the small  boat fishermen  but also  recognize                                                                    
     the  history  of  state   residents  that  have  larger                                                                    
     vessels  that have  participated in  both the  parallel                                                                    
     fishery   and   the   state-water  fishery   and   have                                                                    
     significant histories.   And ... we've  explored, under                                                                    
     the  legal aspects,  the possibility  of IFQs  in state                                                                    
     waters; that  might meet a  constitutional test  and be                                                                    
     legal  under   the  state  system.     [The   Board  of                                                                    
     Fisheries] would require  additional authority that ...                                                                    
     [it]  doesn't  currently   have,  which  would  require                                                                    
     coming back to the legislature to ask for that.                                                                            
                                                                                                                                
Number 2539                                                                                                                     
                                                                                                                                
MR. DERSHAM continued:                                                                                                          
                                                                                                                                
     But we're just trying to  create a situation that keeps                                                                    
     as many of  our options open as possible, so  we can go                                                                    
     down this  road and  look at  this whole  situation and                                                                    
     say here's what's best for  ... Alaska in the [mind] of                                                                    
     the Board of  [Fisheries].  And we  have this workgroup                                                                    
     that's  worked for  a  year now  and  is continuing  to                                                                    
     work,  and  [it's] ...  a  wide  ranging group  of  ...                                                                    
     Alaska  residents  that  participate  ...  in  all  the                                                                    
     facets of the groundfish fisheries in the [GOA].                                                                           
                                                                                                                                
     So, ... I'm  trying to bring a little  bit more clarity                                                                    
     to why we're  supporting this beyond the  fact that ...                                                                    
     you need  to look at a  moratorium as a timeout  to ...                                                                    
     slow down the race for fish.   And in this case, that's                                                                    
     part   of  the   rational.  ...   For  the   Board  [of                                                                    
     Fisheries], the  main rational is  that it gives  us an                                                                    
     ability  to  look at  more  options  and really  decide                                                                    
     what's  best for  the  state, rather  than  kind of  be                                                                    
     forced into a  narrow range of options to  react to the                                                                    
     federal rationalization that seems  to be coming pretty                                                                    
     quickly.  Thanks, Mr. Chairman.                                                                                            
                                                                                                                                
MR. DERSHAM, in  response to questions, confirmed  that the Board                                                               
of Fisheries currently  has the ability to  make distinctions and                                                               
apportions according to  vessel size, and reiterated  that one of                                                               
the options a moratorium would  make available could include, for                                                               
example,  apportioning equal  shares  of a  fishery according  to                                                               
vessel  size   and  history.     Having   a  limited   number  of                                                               
participants could make  the foregoing option possible.   He also                                                               
reiterated  his  earlier  comments   regarding  IFQs,  meeting  a                                                               
constitutional test, and coming back  to the legislature for more                                                               
authority.   He noted, however,  that at this point,  he couldn't                                                               
say what the Board of  Fisheries might ultimately conclude is the                                                               
best option for Alaska; rather,  the Board of Fisheries is merely                                                               
trying to keep its options open.                                                                                                
                                                                                                                                
CHAIR SEATON raised the issue of apportioning bycatch.                                                                          
                                                                                                                                
Number 2092                                                                                                                     
                                                                                                                                
MR. SAVIKKO said:                                                                                                               
                                                                                                                                
     My  understanding of  the issue,  of  bycatch that's  a                                                                    
     problem  in  this  specific fishery,  was  the  halibut                                                                    
     bycatch.     And  again,  that's  a   fishery  that  is                                                                    
     controlled  by  a  treaty agreement  and  ...,  as  the                                                                    
     federal biologist explained  several meetings back, the                                                                    
     halibut is fully allocated already.   And to bring in a                                                                    
     gear type such as a  longline or a trawl fishery within                                                                    
     state  waters, you  would have  to reallocate  existing                                                                    
     fish from one user group to  this other user group.  So                                                                    
     that was  the [concern] on  bycatch when you  term that                                                                    
     bycatch  - we're  not talking  rockfish  or lingcod  or                                                                    
     other bycatch species that I  was speaking to earlier -                                                                    
     the problem was the halibut.                                                                                               
                                                                                                                                
CHAIR  SEATON offered  his understanding  that  in state  waters,                                                               
during  the parallel  fishery, the  longline  cod fishery  almost                                                               
always all  occurs before the  halibut opening.   And if  such is                                                               
the case, doesn't the state have  a way of saying that halibut is                                                               
a prohibited species in a state-waters longline fishery?                                                                        
                                                                                                                                
MR. SAVIKKO replied:                                                                                                            
                                                                                                                                
     What  I  was saying  was,  in  that specific  instance,                                                                    
     where you're talking about  a directed longline fishery                                                                    
     for  Pacific  cod  in the  parallel  season,  they  are                                                                    
     already allocated,  through the  [International Pacific                                                                    
     Halibut   Commission  (IPHC)],   an  apportionment   of                                                                    
     halibut  for that  specific  fishery.   If  we were  to                                                                    
     continue  that  in  the  state-managed  fishery,  which                                                                    
     would typically  start in let's say  February or March,                                                                    
     then you would have to  take from that group, and other                                                                    
     groups,  additional halibut  to  allocate  to this  new                                                                    
     user group  fishing in  March that  currently is  not a                                                                    
     legal gear type during the state-managed fishery.                                                                          
                                                                                                                                
CHAIR  SEATON asked  whether there  would be  a problem  with the                                                               
state  continuing to  manage the  state-water fishery  during the                                                               
parallel fishery.                                                                                                               
                                                                                                                                
MR. SAVIKKO  indicated that  many issues,  such as  whether there                                                               
will even continue to be a  parallel fishery, are still up in the                                                               
air.                                                                                                                            
                                                                                                                                
CHAIR  SEATON asked  whether the  ADF&G is  telling the  Board of                                                               
Fisheries that  it has to  eliminate all longline  fisheries from                                                               
state waters.                                                                                                                   
                                                                                                                                
MR. SAVIKKO said no,  that such a decision is up  to the Board of                                                               
Fisheries to make via its normal process.                                                                                       
                                                                                                                                
Number 1852                                                                                                                     
                                                                                                                                
REPRESENTATIVE  WILSON asked  Mr.  Dersham which  version of  the                                                               
bill the Board of Fisheries would prefer.                                                                                       
                                                                                                                                
MR. DERSHAM said  that the Board of Fisheries is  willing to work                                                               
with either  the version providing for  a vessel-based moratorium                                                               
or  the  version  providing   the  combination  vessel-based  and                                                               
participant-based moratorium.                                                                                                   
                                                                                                                                
CHAIR SEATON asked  whether the Board of Fisheries  would also be                                                               
willing to work with an IUP-based moratorium.                                                                                   
                                                                                                                                
MR.  DERSHAM said  that neither  the Board  of Fisheries  nor the                                                               
aforementioned workgroup  has had an opportunity  to discuss that                                                               
option yet.                                                                                                                     
                                                                                                                                
CHAIR  SEATON   offered  his  understanding  that   an  IUP-based                                                               
moratorium is the only type currently authorized by statute.                                                                    
                                                                                                                                
Number 1749                                                                                                                     
                                                                                                                                
MARY   McDOWELL,   Commissioner,   Commercial   Fisheries   Entry                                                               
Commission  (CFEC), Alaska  Department  of Fish  & Game  (ADF&G),                                                               
offered her understanding that Version  X "is Version W with some                                                               
fine tuning" that occurred over the  last few days in response to                                                               
issues raised during the committee  process, one of which was the                                                               
desire to make it possible for the moratorium to end sooner.                                                                    
                                                                                                                                
Number 1699                                                                                                                     
                                                                                                                                
REPRESENTATIVE Ogg  moved to adopt  the proposed HCS for  SB 347,                                                               
Version  23-LS1677\X,  Utermohle,  4/16/04, as  the  work  draft.                                                               
[The  motion  to adopt  Version  U  as  the  work draft  and  the                                                               
objection to that motion were left pending.]                                                                                    
                                                                                                                                
Number 1683                                                                                                                     
                                                                                                                                
REPRESENTATIVE WILSON objected.                                                                                                 
                                                                                                                                
MS.  McDOWELL offered  to explain  the changes  incorporated into                                                               
Version X.  On page 3,  lines 3-5, there is new language intended                                                               
to  clarify  that  nothing in  the  groundfish  moratorium  would                                                               
predetermine what,  if any, permanent limitations  on entry might                                                               
be adopted later.   She opined that having a  moratorium based on                                                               
both vessels and  individual will level the playing  field.  Page                                                               
7,  lines 18-19,  now  says  that the  CFEC  may, by  regulation,                                                               
extend the  moratorium on entry  of new participants  and vessels                                                               
into the  GOA groundfish fishery  listed in subsection (l).   The                                                               
intent here is to clarify that  the moratorium may not have to be                                                               
extended on all  fisheries.  The language on  Page 9, [subsection                                                               
(f)(1)],  now  addresses  the concern  that  one  could  increase                                                               
vessel  size by  swapping vessels;  there is  no longer  language                                                               
permitting an increase in size of up to 10 percent.                                                                             
                                                                                                                                
MS. McDOWELL relayed that language  on page 9, lines 22-24, would                                                               
not  allow for  any separation  of  a moratorium  permit and  the                                                               
vessel;  thus, if  a moratorium-eligible  vessel was  sold during                                                               
the moratorium, it could continue  to fish because the moratorium                                                               
permit would transfer with the vessel.   The language now on page                                                               
10, lines 27-31,  allows the moratorium on  specific fisheries to                                                               
be  shortened if  the CFEC  adopts another  solution within  four                                                               
years.   She noted  that there  was a concern  raised at  a prior                                                               
meeting regarding the need to  insert language "in the groundfish                                                               
part" comparable  to language currently  on page 6,  lines 30-31,                                                               
which says,  "Nothing in  this section limits  the powers  of the                                                               
Board  of Fisheries  or the  Department  of Fish  and Game";  the                                                               
drafter,  however, has  pointed out  that similar  authority that                                                               
could  pertain to  the  groundfish section  of  the bill  already                                                               
exists under another statute.                                                                                                   
                                                                                                                                
MS. McDOWELL,  referring to Ms.  Sutton's comments  regarding the                                                               
sponsor's  willingness to  consider shortening  the qualification                                                               
period, pointed  out that if the  committee did want to  do that,                                                               
it would go  a long ways towards addressing the  concern that the                                                               
pool of  moratorium participants  would be  too large,  and could                                                               
easily be  done by changing the  language on page 8,  lines 6 and                                                               
23, so  that it references,  "January 1, 2000;  the qualification                                                               
period  would then  be  four years  instead of  six  years.   She                                                               
remarked that  such a change  would reduce the pool  of potential                                                               
participants during  the moratorium, pointed out  that four years                                                               
is normally  the amount of look-back  time the CFEC uses  in most                                                               
limitations,  and  characterized it  as  a  reasonable period  of                                                               
time.  The  only people and vessels that would  be excluded under                                                               
such a change would be those  who participated five and six years                                                               
ago but haven't participated since.                                                                                             
                                                                                                                                
Number 1159                                                                                                                     
                                                                                                                                
MS. McDOWELL opined  that the changes made thus  far coupled with                                                               
reducing the qualification period would  result in a bill that is                                                               
very responsive  to the concerns  raised thus far.   She remarked                                                               
that  "this" is  a  tough,  complicated issue,  and  that if  the                                                               
committee feels that the CFEC should  have the tools to deal with                                                               
moratoria  needs as  they arise  in  the future,  then there  are                                                               
other  sections of  [Version X]  that  would provide  such.   She                                                               
characterized  Section   9  as  being  very   responsive  to  the                                                               
committee's concerns, and  as providing the CFEC  with a workable                                                               
and  easily administered  moratorium, which  would keep  freed-up                                                               
federal  vessels  from  coming  in and  would  contain  potential                                                               
growth throughout its duration.                                                                                                 
                                                                                                                                
REPRESENTATIVE OGG  asked whether the  CFEC would be  amenable to                                                               
reducing the moratorium period to  two years with the possibility                                                               
of having a one-year extension.                                                                                                 
                                                                                                                                
MS.  McDOWELL said  that such  a change  would result  in a  very                                                               
short  time  period,  and  pointed  out that  the  purpose  of  a                                                               
moratorium  is  to  do  thorough analysis,  which  might  not  be                                                               
possible if  the time period  were too short,  particularly given                                                               
the CFEC's current staffing level and workload.  She added:                                                                     
                                                                                                                                
     I'd be reluctant to say  that we would have the ability                                                                    
     to do the kind of  thorough analysis, in that amount of                                                                    
     time, that  would need to  be done, to make  a decision                                                                    
     about what  to even propose.  ... We may also  not know                                                                    
     for  sure what's  happening at  the  federal level  and                                                                    
     what the risks  are to these fisheries,  whether we can                                                                    
     risk  open   access,  [and]   whether  the   Board  [of                                                                    
     Fisheries] would  have tools to deal  [with issues] ...                                                                    
     in that  amount of time.   I  don't know that  we could                                                                    
     come  up with  a very  sound proposal  in such  a short                                                                    
     time period.                                                                                                               
                                                                                                                                
REPRESENTATIVE OGG said  he would like the CFEC to  work with due                                                               
diligence and resolve  this issue as quickly  as possible because                                                               
the proposed moratorium can potentially  tie up a large number of                                                               
fisheries  for a  long period  of time.   He  suggested that  the                                                               
language currently in Version X  would allow the CFEC the ability                                                               
to extend the moratorium whenever it wished.                                                                                    
                                                                                                                                
Number 0882                                                                                                                     
                                                                                                                                
MS. McDOWELL pointed  out that the generic portions  of Version X                                                               
only address  the CFEC's ability  to extend a  moratorium created                                                               
under   AS  16.43.225,   whereas   the  moratorium   specifically                                                               
authorized by Version  X is not one of those  types of moratoria.                                                               
She  attempted to  assure Representative  Ogg that  the CFEC  has                                                               
every  motivation  to  arrive  at  a  proposal  for  a  permanent                                                               
solution  as early  as possible,  since it  is by  far easier  to                                                               
craft  a  permanent  program  if   there  has  not  been  a  long                                                               
moratorium.                                                                                                                     
                                                                                                                                
CHAIR   SEATON  offered   his   understanding   that  the   [GOA]                                                               
rationalization  will be  in place  by 2006-2007.   He  asked why                                                               
there should  be a  moratorium lasting longer  than it  takes for                                                               
the federal program to be implemented.                                                                                          
                                                                                                                                
MS. McDOWELL replied:                                                                                                           
                                                                                                                                
     Even  if  the federal  government  was  not taking  any                                                                    
     action in  these fisheries,  if we  were just  going to                                                                    
     try to  put together  a moratorium and  come up  with a                                                                    
     limitation  proposal  just  strictly looking  at  state                                                                    
     issues,  these   are  by   far  the   most  complicated                                                                    
     fisheries  the [CFEC]  will ever  have dealt  with. ...                                                                    
     Normally, when you  limit a fishery, you  have one gear                                                                    
     type, one  species, one  area.  Here  we've got  a huge                                                                    
     area, ...  [and] we would  have to figure out  ... what                                                                    
     areas, what species,  [and] how [to] ... -  in the data                                                                    
     -  sort out  what  was incidental  catch  and what  was                                                                    
     targeted; [there  are] so many species,  so many areas,                                                                    
     so many  different gear  types, that  it's going  to be                                                                    
     extremely complicated, data-wise.                                                                                          
                                                                                                                                
REPRESENTATIVE  GARA  asked  what kind  of  permanent  limitation                                                               
might be instituted after the moratorium.                                                                                       
                                                                                                                                
MS.  McDOWELL  indicated  that there  would  be  several  options                                                               
available.   In  response  to another  question,  she noted  that                                                               
Section 9 of Version X statutorily creates a moratorium.                                                                        
                                                                                                                                
REPRESENTATIVE  WILSON  relayed  a  concern  that  instituting  a                                                               
vessel-based moratorium for the  fisheries referenced in the bill                                                               
will result  in all  future entry  permit programs  being vessel-                                                               
based.                                                                                                                          
                                                                                                                                
MS. McDOWELL  said such would  not be the case,  but acknowledged                                                               
that  many share  that  concern.   In  an  effort  to allay  that                                                               
concern, which she characterized  as unnecessary, she pointed out                                                               
that regardless  of what  criteria the moratorium  is based  on -                                                               
person,  vessel,  or  a  combination  of both  -  the  fish  data                                                               
collected  during the  moratorium  will be  the  same because  it                                                               
comes in  on fish tickets,  which are in  the name of  the vessel                                                               
operator, or  the IUP holder.   In response to  another question,                                                               
she noted that  the CFEC doesn't have the  authority to institute                                                               
a vessel-based  permit system  without first  getting legislative                                                               
approval.                                                                                                                       
                                                                                                                                
Number 0193                                                                                                                     
                                                                                                                                
ALAN  PARKS,  Commercial  Fisherman,  relayed that  he  has  been                                                               
involved  in  the commercial  fishing  industry  since 1975,  has                                                               
participated  in  catching  halibut, crab,  shrimp,  salmon,  and                                                               
herring in  just about every  major fishery  in the state  - from                                                               
the GOA, Bering Sea, and Aleutian  Islands - and under just about                                                               
every imaginable  scenario with regard to  business relationships                                                               
- he's  been a  crewmember, a  skipper, a  hired skipper,  a boat                                                               
owner, and  has hired skippers and  leased boats.  He  said he is                                                               
not supportive of  a vessel-based moratorium.   He suggested that                                                               
it  is  important for  committee  members  to  look back  on  the                                                               
principles of fisheries allocation  since statehood and since the                                                               
enactment of limited entry.  He  opined that if a moratorium must                                                               
be put  in place,  it should be  participant-based, and  that the                                                               
number of eligible  people under any scenario is not  going to be                                                               
the sole determining factor for who gets to go fishing.                                                                         
                                                                                                                                
TAPE 04-25, SIDE A                                                                                                            
Number 0001                                                                                                                     
                                                                                                                                
MR. PARKS  indicated that one's  market - for example,  whether a                                                               
processor  is  willing  to  buy  one's  fish  -  can  also  be  a                                                               
determining factor  in whether  one will be  able to  go fishing.                                                               
He   noted  that   a   vessel-based   limited-entry  system   was                                                               
established for  Korean hair crab  fishery at the request  of the                                                               
CFEC, and  predicted that establishing a  vessel-based moratorium                                                               
for  groundfish  in   the  GOA  will  lead  to   the  CFEC  later                                                               
recommending a  vessel-based limited-entry system.   Opining that                                                               
it is  not in the state's  best interest to consider  the federal                                                               
government's rationalization regarding the  federal waters of the                                                               
GOA,  he  offered  a  personal  example  wherein  his  pay  as  a                                                               
crewmember aboard  a union vessel  out of  Seattle was cut  by 60                                                               
percent when  the rights  to the resource  were switched  over to                                                               
[an absentee owner] in a  vessel-based system.  In conclusion, he                                                               
characterized the state of Alaska  as the leader in conservation,                                                               
warned  the  committee  against  going down  the  same  road  the                                                               
federal managers have  taken, said he really  appreciates all the                                                               
hard work  the committee  has done on  this issue,  and suggested                                                               
that to keep things simple,  the moratorium should be individual-                                                               
based.                                                                                                                          
                                                                                                                                
Number 0290                                                                                                                     
                                                                                                                                
GERRY  MERRIGAN,  Prowler Fisheries,  noted  that  he is  also  a                                                               
member of the Board of  Fisheries' GAO groundfish rationalization                                                               
committee, and said  that he supports the original  version of SB
347 though  he might also  support Version X because  it contains                                                               
language regarding  vessel-based criteria.   He predicted  that a                                                               
moratorium  which  is  solely  individual-based  will  result  in                                                               
approximately  30 percent  more  participants, and  characterized                                                               
such  a   situation  as  a  "de-rationalization   program."    He                                                               
suggested  that members  remain clear  that a  moratorium is  not                                                               
synonymous  with the  licensing  program  or the  rationalization                                                               
program.   The  timeout period  provided by  the moratorium  will                                                               
provide  the time  in  which to  determine  whether a  particular                                                               
fishery's   licensing   program   should   be   vessel-based   or                                                               
individual-based, but  the moratorium itself  will not  force the                                                               
state into any particular rationalization program.                                                                              
                                                                                                                                
MR. MERRIGAN  then read portions  of the handout provided  by the                                                               
Board  of Fisheries  regarding its  findings, and  suggested that                                                               
when  discussing capacity,  it is  the  vessel that  needs to  be                                                               
considered, not  the individual,  and that having  a vessel-based                                                               
moratorium in some  fashion will preclude people  from jumping to                                                               
larger  vessels.   He said  he supports  giving the  CFEC general                                                               
moratorium authorization.  He noted  that the Board of Fisheries'                                                               
GAO  groundfish rationalization  committee is  still adjudicating                                                               
"maximum number of  crab permits" from Southeast  Alaska from the                                                               
early '80s, and attributed this  backlog to the un-workability of                                                               
the "existing  limited-entry moratorium system."   In conclusion,                                                               
he opined  that a  statutory moratorium is  the best  option, and                                                               
said he supports  moving ahead, particularly since  the CFEC, the                                                               
ADF&G, the  NPFMC, and the  Board of  Fisheries all appear  to be                                                               
mostly in agreement on this issue.                                                                                              
                                                                                                                                
Number 0613                                                                                                                     
                                                                                                                                
JOE  CHILDERS,  Director,  Western   Gulf  of  Alaska  Fishermen,                                                               
mentioned  that he's  already testified  during a  prior hearing,                                                               
and asked the committee to  reflect carefully upon Mr. Merrigan's                                                               
last comment regarding the fact  that all the various groups that                                                               
have to work together on this issue are in agreement.                                                                           
                                                                                                                                
Number 0693                                                                                                                     
                                                                                                                                
JULIE  BONNEY,  Alaska Groundfish  Data  Bank,  said her  biggest                                                               
concern is  that the  bill move  forward.  A  lot of  people have                                                               
done a  great amount of work  on this issue even  before the bill                                                               
got to  the legislature  because they  believed it  would provide                                                               
the   state  with   an  important   tool  in   keeping  fisheries                                                               
economically  viable while  dealing with  the concept  of federal                                                               
rationalization.   She indicated  that although  she still  has a                                                               
preference  for  a  solely vessel-based  moratorium,  she  is  in                                                               
support of  Version X  because it provides  a compromise  and, as                                                               
such, is a good thing.   She offered her belief that the drafters                                                               
of Version X  have included as much flexibility  as possible, and                                                               
that the period  of time proposed for  information gathering will                                                               
result in it being accomplished in a timely fashion.                                                                            
                                                                                                                                
Number 0864                                                                                                                     
                                                                                                                                
JASON  M.  KOONTZ,  Commercial Fisherman,  predicted  that  if  a                                                               
solely  vessel-based  program is  instituted,  it  will lead  the                                                               
state  down the  road towards  corporate absentee  ownership, and                                                               
suggested that  such a program will  limit his ability to  earn a                                                               
living.    He  recommended  mirroring  what  the  NPFMC  ends  up                                                               
proposing,  and use  of an  individual-permit-based program  as a                                                               
viable solution, adding  that he does not  support a vessel-based                                                               
program.                                                                                                                        
                                                                                                                                
Number 1038                                                                                                                     
                                                                                                                                
ALEXUS   KWACHKA,   Gulf  Groundfish   Fishermen's   Association;                                                               
Crewmember's  Association,  relayed   that  the  Gulf  Groundfish                                                               
Fishermen's  Association represents  about 156  people, and  that                                                               
the  Fishermen's Association  represents  about 238  people.   He                                                               
indicated  that  neither  organization  supports  a  vessel-based                                                               
system, and  suggested that  if a  limitation is  established, it                                                               
should  recognize the  individuals  that have  participated in  a                                                               
particular fishery, not  the vessels.  He noted  that the federal                                                               
program  has no  provision  regarding skipper  or  crew, that  it                                                               
pertains  solely  to vessels,  and  opined  that such  encourages                                                               
"absentee ownership."                                                                                                           
                                                                                                                                
MR.  KWACHKA  expressed  a  preference  for  an  individual-based                                                               
moratorium,  rather than  a vessel-based  moratorium, and  opined                                                               
that the Board  of Fisheries has plenty of tools  at its disposal                                                               
for  limiting participation,  which, he  suggested, will  also be                                                               
limited by  economic factors,  just as  has occurred  in Kodiak's                                                               
salmon  fisheries.    In conclusion,  he  characterized  the  pot                                                               
fishery and  jig fishery as  very successful, and said,  "I think                                                               
when you look  at the fuel consumptions by trawl  vessel versus a                                                               
pot boat, you're going to see  that the economics will not permit                                                               
them to go  into these fisheries - it just  doesn't work for them                                                               
the  way it  works for  the  smaller vessels  of the  communities                                                               
here.                                                                                                                           
                                                                                                                                
Number 1302                                                                                                                     
                                                                                                                                
JULIE  KAVANAUGH, Owner/Operator,  F/V Silvia  Star, expressed  a                                                               
preference  for an  individual-based moratorium  or, as  a second                                                               
choice,  a combination  of an  individual-based and  vessel-based                                                               
moratorium, rather  than an exclusively  vessel-based moratorium.                                                               
She, too, mentioned that there  is a concern that by establishing                                                               
moratorium that is strictly vessel-based,  the CFEC is indicating                                                               
a preference for instituting a  vessel-based permit system in the                                                               
future.                                                                                                                         
                                                                                                                                
Number 1412                                                                                                                     
                                                                                                                                
JEFFREY  R. STEPHAN,  United  Fishermen's Marketing  Association,                                                               
Inc.  (UFMA), said  the UFMA  supports a  vessel-based moratorium                                                               
but has no objection to  including an individual-based moratorium                                                               
in the bill as well.  He opined  that a moratorium is in the best                                                               
interest of Alaska  vessels and residents, and that  this bill in                                                               
particular   will  protect   their   standing   in  any   federal                                                               
rationalization  program.    He  suggested   that  the  Board  of                                                               
Fisheries should be provided with  as many options as possible so                                                               
that it  is not limited in  its ability to preserve  the standing                                                               
of Alaska vessels.                                                                                                              
                                                                                                                                
[SB 347, Version W, was  held over; the motion regarding adoption                                                               
of Version  U as a  work draft and  the objection to  that motion                                                               
were left pending; the motion  regarding adoption of Version X as                                                               
a  work  draft  and  the  objection  to  that  motion  were  left                                                               
pending.]                                                                                                                       

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