Legislature(2011 - 2012)CAPITOL 120

03/15/2011 05:00 PM House FISHERIES


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05:04:07 PM Start
05:04:35 PM Overview: Commercial Fisheries Entry Commission (cfec)
05:24:38 PM HB20
06:03:34 PM HB181
06:50:46 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overview: Commercial Fisheries Entry Commission TELECONFERENCED
by Bruce Twomley, Chairman
*+ HB 20 PERSONAL USE FISHING PRIORITY TELECONFERENCED
Heard & Held
*+ HB 181 COMMERCIAL FISHING CREWMEMBER STATISTICS TELECONFERENCED
Heard & Held
        HB 181-COMMERCIAL FISHING CREWMEMBER STATISTICS                                                                     
                                                                                                                                
6:03:34 PM                                                                                                                    
                                                                                                                                
CHAIR THOMPSON  announced that the  final order of  business would                                                              
be HOUSE  BILL NO. 181, "An  Act requiring the Department  of Fish                                                              
and Game annually  to collect confidential information  related to                                                              
days  worked by  commercial  fishing  crewmembers  and to  compile                                                              
statistical data."                                                                                                              
                                                                                                                                
6:06:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ALAN   AUSTERMAN,   Alaska   State   Legislature,                                                              
speaking  as  the  prime sponsor,  paraphrased  from  the  sponsor                                                              
statement,   which   read   as   follows   [original   punctuation                                                              
provided]:                                                                                                                      
                                                                                                                                
     Economists  estimate that  the  Alaska seafood  industry                                                                   
     is the  largest private  sector employer  in the  state.                                                                   
     In  November  2010,  the  Alaska   Department  of  Labor                                                                   
     reported  that the  industry  employed  at least  53,500                                                                   
     workers-skippers,  crew and  processing workers-at  some                                                                   
     point during  ... during  2009.  This  number is  a best                                                                   
     estimate,  though,  because   commercial  fishermen,  as                                                                   
     self-employed  people,  are  outside of  standard  labor                                                                   
     data  collection.   At  present,  data to  describe  the                                                                   
     workforce  of 20,000  crewmembers who  work in  Alaska's                                                                   
     fisheries is  almost non-existent.  We  cannot determine                                                                   
     whether an  individual crewmember  fished 5 days  or 250                                                                   
     in a  given year; whether he  or she fished in  a single                                                                   
     salmon  fishery  or  in  seven   fisheries  across  five                                                                   
     regions  of the state;  on a  single boat  or on 10;  or                                                                   
     whether  he   or  she  fished   a  single  year   as  an                                                                   
     adventure, or is a 25-year veteran of the industry.                                                                        
                                                                                                                                
     State  and  federal  fishery   policy  can  have  strong                                                                   
     impacts-positive   or  negative-on  employment   in  the                                                                   
     seafood  industry.     At  present,  however,   decision                                                                   
     makers  have  extremely  limited  information  that  can                                                                   
     guide their  policy direction with respect to  the labor                                                                   
     force  in  the fishing  industry.    They are  asked  to                                                                   
     formulate  resource  policies  that impact  the  largest                                                                   
     labor   force  in   Alaska,  without   the  benefit   of                                                                   
     information on that labor force.  Time and time again-                                                                     
     particularly   in  federal  regulatory   arenas-Alaskans                                                                   
     have    seen   regulations    implemented   that    have                                                                   
     significant  and  deleterious  impacts  on  the  seafood                                                                   
     industry  that could have  been foreseen, mitigated,  or                                                                   
     avoided had this information been in hand.                                                                                 
                                                                                                                                
     HB 181  is the result of  five years of work  by fishing                                                                   
     industry participants,  coastal municipalities,  and the                                                                   
     Alaska  Department  of  Fish   and  Game  to  develop  a                                                                   
     program  and approach  that addresses  the policy  needs                                                                   
     and  interests  of Alaskan  fishermen  and  communities.                                                                   
     It establishes  a pilot crew data program  in the Alaska                                                                   
     Department of  Fish and Game.   Simple year  end reports                                                                   
     from commercial  fishing crew  will provide  information                                                                   
     on  fishery  participation  through  the course  of  the                                                                   
     year, and allow  the department to link  crewmember data                                                                   
     with harvest data for aggregated statistical analysis.                                                                     
                                                                                                                                
     HB  181  has  a  5-year  sunset.     This  provides  the                                                                   
     Legislature  the opportunity to  review the efficacy  of                                                                   
     the  program and  ensure it  meets  the intended  policy                                                                   
     goals.                                                                                                                     
                                                                                                                                
6:08:52 PM                                                                                                                    
                                                                                                                                
ERIN  HARRINGTON,  Staff, Representative  Alan  Austerman,  Alaska                                                              
State  Legislature, directed  attention  to  the committee  packet                                                              
and the report  titled "Improving Seafood Harvesting  Labor Data,"                                                              
prepared for  the Southwest  Alaska Municipal Conference  (SWAMC),                                                              
and published  in March  2007; the  first comprehensive  report to                                                              
establish  the importance  of crewmember  data  for policy  making                                                              
purposes.   She  noted  that  the bill  is  an important  step  in                                                              
filling  a significant  information gap  regarding Alaska's  labor                                                              
force.   Fishermen are self  employed contract workers,  reporting                                                              
income to  the Internal Revenue Service  (IRS) on form  1099.  The                                                              
self  employed status  exempts  them from  unemployment  insurance                                                              
reporting,  which  is Alaska's  major  source  for data  of  valid                                                              
employment.     Thus,  the   Department   of  Labor  &   Workforce                                                              
Development  (DLWD)   cannot  include  crewmember   statistics  in                                                              
employment  reports.    As  a  result,   it  is  not  possible  to                                                              
characterize  the crewmember  work  force regarding  contributions                                                              
to  Alaska's economy,  which presents  a major  disconnect in  the                                                              
system.   She referred to the  previously named handout,  page 23,                                                              
which mentions  the ramifications  that occur when  municipalities                                                              
apply for certain  federal programs, but lack the  data indicating                                                              
the  seasonal  industry  impacts.   Further,  lack  of  this  data                                                              
presents  a  challenge  to  communities  performing  comprehensive                                                              
planning processes.                                                                                                             
                                                                                                                                
6:17:35 PM                                                                                                                    
                                                                                                                                
MS. HARRINGTON  explained that  Section 1  adds a requirement  for                                                              
ADF&G to  distribute a  crew activity  form, to crewmembers,  when                                                              
practicable.   Section 2 describes  the new program, one  in which                                                              
crewmembers  would  report  fishing  activity at  year's  end  and                                                              
describe  the   ways  in  which   they  had  participated.     The                                                              
subsections  establish:   what  information  is to  be  collected;                                                              
ensures that  information will be  maintained as  confidential and                                                              
used  for  statistical  purposes  only; names  the  agencies  with                                                              
which the  information can be  shared; allows rebuttal  privileges                                                              
regarding the  accuracy of the  information collected;  allows the                                                              
department  to establish  regulatory  authority;  and defines  the                                                              
terms used  in the  bill.  She  elaborated on  the meaning  of the                                                              
term "obligated to a vessel."                                                                                                   
                                                                                                                                
6:23:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  asked, "Why don't  we require them  to fill                                                              
the log books out."                                                                                                             
                                                                                                                                
MS. HARRINGTON indicated  that it has been discussed  but there is                                                              
stipulation that  crewmembers "shall" fill  out log books;  it may                                                              
be an oversight.                                                                                                                
                                                                                                                                
REPRESENTATIVE HERRON  referred to the fiscal note  narrative, and                                                              
suggested  contracting with  a private  agency to  handle the  log                                                              
books, rather than expanding bureaucracy.                                                                                       
                                                                                                                                
6:25:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLER inquired  how HB 181  will be enforced  and                                                              
reporting handled.                                                                                                              
                                                                                                                                
MS. HARRINGTON  responded that ADF&G  would be honing  the process                                                              
over  the  next  five  years  and  the  sunset  date  provides  an                                                              
opportunity  for the legislature  to review  the effectiveness  of                                                              
the  program.   She indicated  that enforcement  would be  handled                                                              
through the regulatory process.                                                                                                 
                                                                                                                                
6:27:22 PM                                                                                                                    
                                                                                                                                
MARCUS  HARTLEY, Vice  President  and Senior  Economist,  Northern                                                              
Economics Consulting,  stated support  for HB  181, and  said that                                                              
the  need  for  crewmember  data  has been  a  concern  since  the                                                              
establishment of  the individual fishing  quota (IFQ) system.   At                                                              
the  time,  estimates  were made  based  entirely  on  assumptions                                                              
regarding how  many crewmembers might  be on a particular  type of                                                              
fishing boat.   Accurate  data still does  not exist  and analysis                                                              
of  fisheries  continues  to  be  absent  crewmember  information,                                                              
which, he opined,  if it existed,  could prove to be helpful.   He                                                              
provided  an  anecdotal  story regarding  the  convoluted  process                                                              
that  ensued  when   a  U.S.  Congressional  award   was  made  to                                                              
compensate   fishermen  damaged   by   a  ruling.     Not   having                                                              
information  on crewmembers  greatly  impeded  the award  process.                                                              
Also, the  lack of crewmember data  has an effect on  the economic                                                              
analysis  that  is  currently  being  undertaken  to  characterize                                                              
communities  and   which  could  be  used  to   support  municipal                                                              
developments being considered.                                                                                                  
                                                                                                                                
6:32:45 PM                                                                                                                    
                                                                                                                                
CHAIR THOMPSON  noted that the  accuracy of the  information would                                                              
be important,  and asked whether  there is concern  for exactitude                                                              
received from residents versus non-residents.                                                                                   
                                                                                                                                
MR.  HARTLEY  stated  his  belief  that  both  resident  and  non-                                                              
resident  crewmembers participate  seriously in  the fishing  life                                                              
style,   and  would   understand  the   importance  of   providing                                                              
information  to  support  the  activity.     He  acknowledged  the                                                              
difficulty  in   arriving  at   a  verifiable,  enforceable,   and                                                              
simplistic  system.   In  response  to a  follow  up question,  he                                                              
suggested  that a  possible means  for  enforcement of  compliance                                                              
would be to deny renewal of a crewmember's license.                                                                             
                                                                                                                                
6:34:51 PM                                                                                                                    
                                                                                                                                
ERIK  O'BRIEN,  Member,  Southwest   Alaska  Municipal  Conference                                                              
(SWAMC),  stated support  for HB  181, and  said the  organization                                                              
has worked  for seven  years to  establish a  means for  gathering                                                              
crewmember   information,  which   will   allow  better   economic                                                              
decisions to be made in municipalities.                                                                                         
                                                                                                                                
6:37:55 PM                                                                                                                    
                                                                                                                                
JEFF REGNART, Director,  Division of Commercial  Fisheries, stated                                                              
support for  HB 181, and said  that the state  sells approximately                                                              
20,000  crewmember  licenses annually,  but  fails  to recoup  any                                                              
information regarding  the participation  level of the  licensees.                                                              
Collection  of  the information  will  enable  the state  to  more                                                              
fully  describe the  contributions  of commercial  fishing to  the                                                              
state's local economies,  as well as provide  valuable information                                                              
to policy and rule making bodies                                                                                                
                                                                                                                                
6:39:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON asked if  collection of  the data  could be                                                              
accomplished by contracting with the private sector.                                                                            
                                                                                                                                
MR.  REGNART  replied that  it  could  be possible;  however,  the                                                              
confidentiality issue may be a concern.                                                                                         
                                                                                                                                
6:40:31 PM                                                                                                                    
                                                                                                                                
JULIANNE  CURRY,  Executive Director,  Petersburg  Vessel  Owner's                                                              
Association,  stated support  for HB  181, and  said the  previous                                                              
attempts  to collect this  information were  met with  opposition.                                                              
However, concerns  have been addressed and the  lack of crewmember                                                              
information is  a gaping hole  in Alaska's employment  statistics,                                                              
not to  mention the  inability of the  fishing industry  to gather                                                              
an  accurate picture  of a  member's presence  in the  state.   To                                                              
illustrate the  difficulty that  can occur in tracking  crewmember                                                              
information,  she offered that  as a crewmember,  who also  owns a                                                              
licensed  boat,  she is  not  required  to purchase  a  crewmember                                                              
license.                                                                                                                        
                                                                                                                                
6:42:25 PM                                                                                                                    
                                                                                                                                
SHAWN  DOCHTERMANN,  Executive  Director,  Crewman's  Association,                                                              
stated support  for HB 181, and  suggested a means  for collecting                                                              
the  data  via  a swipe  card  system.    He  suggested  inserting                                                              
language  that fishing  vessels, which  deliver seafood  products,                                                              
should  be   required  to  furnish   crewmen  with   contract  and                                                              
reconcilable settlement  sheets, which would address  the issue of                                                              
crewmembers  not receiving  contracts  and appropriate  settlement                                                              
sheets  for  tax   purposes.    He  offered  to   provide  further                                                              
information regarding these issues to the committee.                                                                            
                                                                                                                                
6:45:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLER   asked  whether  accuracy   might  pose  a                                                              
problem,  and what  the general  attitude might  be among  crewman                                                              
requested to fill out paperwork.                                                                                                
                                                                                                                                
MR.   DOCHTERMANN   stated   his  belief   that   collecting   the                                                              
information,  as requested  in the  bill, may  not be  productive.                                                              
However, the  alternative suggestion of  using a swipe  card could                                                              
make it  plausible.  He  said United Fisherman  of Alaska  did not                                                              
agree  with  having  the  swipe   card  approach  and,  thus,  the                                                              
suggestion died in the task force committee meeting.                                                                            
                                                                                                                                
6:47:46 PM                                                                                                                    
                                                                                                                                
MARK  VINSEL,  Executive  Director,  United  Fisherman  of  Alaska                                                              
(UFA), stated  support for  HB 181,  and said  that UFA  has never                                                              
opposed collection  of this  data.  He  recalled that  UFA offered                                                              
comments  on a  proposal  that required  a  skipper generated  log                                                              
book, but which proved to have numerous problems.                                                                               
                                                                                                                                
6:49:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  AUSTERMAN said  questions would  be circulated  to                                                              
the committee for future discussion.                                                                                            
                                                                                                                                
CHAIR THOMPSON announced that HB 181 would be held over.                                                                        
                                                                                                                                

Document Name Date/Time Subjects
HB 181 - Version B.pdf HFSH 3/15/2011 5:00:00 PM
HB 181
HB 181 - Sponsor Statement.pdf HFSH 3/15/2011 5:00:00 PM
HB 181
HB 181 - Seafood Harvesting Labor Data - Final Report - 2007.pdf HFSH 3/15/2011 5:00:00 PM
HB 181
HB 181 - Crew Data Study Results ADF&G-Wostmann & Associates.pdf HFSH 3/15/2011 5:00:00 PM
HB 181
HB 181-DFG-CFD-03-11-11.pdf HFSH 3/15/2011 5:00:00 PM
HB 181
CFEC - Annual Report - 2009.pdf HFSH 3/15/2011 5:00:00 PM
HB 20 - Sponsor Statement.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 20 - Alaska Statute 16.05.251 - Board of Fisheries.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 20 - Chitina Dipnetters Association Ltr - Support.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 20 - A Crookston Ltr - Oppose.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 20 - Alaska Trollers Association Ltr - Oppose.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 20 - Berry Ltr - Oppose.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 20 - Black Ltr - Oppose.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 20 - Campbell Ltr - Oppose.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 20 - Cordova District Fishermen United Ltr - Oppose.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 20 - Mickelson Ltr - Oppose.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 20 - Mykland Ltr - Oppose.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 20 - P Crookston Ltr - Oppose.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 20 - Phillips Ltr - Oppose.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 20 - Southeast Alaska Fishermen’s Alliance Ltr - Oppose.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 20 - T Crookston Ltr - Oppose.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 20 - DFG-CO-03-11-11.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 20 - Petersburg Vessel Owners Association Ltr - Oppose.pdf HFSH 3/15/2011 5:00:00 PM
HB 20
HB 181 - United Fishermen of Alaska Ltr - Support.pdf HFSH 3/15/2011 5:00:00 PM
HB 181
HB 181 - Dept of Law Memorandum - 7-24-08.PDF HFSH 3/15/2011 5:00:00 PM
HB 181
HB 20 - United Fishermen of Alaska Ltr - Oppose.pdf HFSH 3/15/2011 5:00:00 PM
HB 20