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