Legislature(2023 - 2024)GRUENBERG 120

04/23/2024 10:00 AM House FISHERIES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SCR 10 JOINT LEGIS SEAFOOD INDUSTRY TASK FORCE TELECONFERENCED
Heard & Held
*+ HR 8 FISHERIES BYCATCH REGULATIONS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled 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