Legislature(2001 - 2002)

02/27/2002 01:00 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 283-APPOINTMENTS TO BOARD OF FISHERIES                                                                                     
                                                                                                                                
CO-CHAIR  SCALZI  announced  that  the first  order  of  business                                                               
before  the committee  would  be HOUSE  BILL NO.  283,   "An  Act                                                               
relating to appointments to the Board  of Fisheries and to the ex                                                               
officio secretary of the Board of Fisheries."                                                                                   
                                                                                                                                
Number 0204                                                                                                                     
                                                                                                                                
[Although  there was  a motion  to  adopt CSHB  283(FSH), it  was                                                               
already before the committee.]                                                                                                  
                                                                                                                                
CO-CHAIR SCALZI, sponsor of HB  283, briefly discussed changes in                                                               
the  bill  regarding the  number  of  seats for  each  particular                                                               
interest group:   previously  the seats  were three  sport, three                                                               
commercial, and one subsistence, whereas  now they are two sport,                                                               
two commercial,  two subsistence, and  one at-large.  He  said he                                                               
didn't  know  whether there  had  been  much dialog;  his  office                                                               
hadn't heard many comments from committee members.                                                                              
                                                                                                                                
Number 0318                                                                                                                     
                                                                                                                                
CARL  ROSIER, President,  Alaska Outdoor  Council (AOC),  offered                                                               
AOC's  view that  the  Board of  Fisheries  had been  functioning                                                               
extremely  well in  recent  years,  that there  has  been a  good                                                               
balance in terms of composition of  the board, and that the board                                                               
has  been very  open-minded.   He said  the board  had made  some                                                               
major decisions  that will  long affect  the salmon  resources in                                                               
Alaska positively.                                                                                                              
                                                                                                                                
MR.  ROSIER said  representation on  the Board  of Fisheries  has                                                               
been an  issue since  statehood, with  assertions that  the board                                                               
was too  slanted toward commercial or  sport [fishing] interests,                                                               
for  example; also,  there have  been some  individuals who  were                                                               
there to represent subsistence.  He  said HB 283 would create one                                                               
additional board  position, although he wasn't  sure what problem                                                               
HB  283  was  addressing.    He  said  the  board  seemed  to  be                                                               
accomplishing good  things for the  resources and the state.   He                                                               
noted that  HB 283 comes  at a time when  the state is  trying to                                                               
save money.                                                                                                                     
                                                                                                                                
Number 0509                                                                                                                     
                                                                                                                                
MR. ROSIER  said some  of the problems  that AOC  had experienced                                                               
were regarding  criteria for selection  of people.   He explained                                                               
that  this  had  gone   through  the  advisory-committee  system;                                                               
consequently,   people   who   held  commercial   licenses   were                                                               
considered to be  sport fishermen because they held  a sport fish                                                               
license.   He  suggested  that  sport-fish [representatives]  are                                                               
sometimes felt to be slanted in  their views as far as commercial                                                               
interests are concerned.   He said he thought  the designation of                                                               
seats went  further than just  designating a seat; it  depends on                                                               
the individuals  involved and the  people appointed  and selected                                                               
by the  governor.  However,  it is  necessary to ensure  that the                                                               
board continues to  function in a fair and  equitable manner that                                                               
is good for all of the users and  the resources of the state.  He                                                               
reiterated  that AOC  felt the  board had  been functioning  very                                                               
well and would like it to stay that way.                                                                                        
                                                                                                                                
Number 0620                                                                                                                     
                                                                                                                                
CO-CHAIR SCALZI  said the  United Fishermen  of Alaska  (UFA) had                                                               
been concerned about  representation on the board.   He suggested                                                               
their  intent could  be reflected  in a  recent action  the board                                                               
took up regarding  the so-called Chignik proposal.   He mentioned                                                               
lack of  forethought that  went into trying  to appease  one gear                                                               
group  in one  particular  area, saying  it  had some  downstream                                                               
effect.  There was concern  that if there was more representation                                                               
on the board, [members] would have responded differently.                                                                       
                                                                                                                                
MR. ROSIER suggested an appointment  to the Board of Fisheries is                                                               
one  of the  toughest jobs  in  the state.   He  indicated it  is                                                               
impossible to satisfy everybody.   He remarked that a nice aspect                                                               
of the board  system is the opportunity to be  heard by the board                                                               
and  receive  a decision;  however,  the  decision might  not  be                                                               
favorable.   He said the board  does not delay decisions  or drag                                                               
issues  on  for  a  lengthy  period of  time,  which  some  other                                                               
regulatory entities tend to do.   He remarked that the system has                                                               
been working very well.  He  concluded, "You might not always get                                                               
your way before  the board, but on the other  hand, you certainly                                                               
get your day in court."                                                                                                         
                                                                                                                                
Number 0799                                                                                                                     
                                                                                                                                
KEVIN  HOGAN testified  via teleconference,  offering his  belief                                                               
that  the Board  of  Fisheries  process at  the  present time  is                                                               
almost  irreparably  broken.   He  disagreed  with  Mr.  Rosier's                                                               
testimony that the  process has been working well.   He suggested                                                               
HB 283 isn't the right answer.   He explained that at the present                                                               
time  the board  composition  is virtually  all sport  fishermen,                                                               
without commercial representation.   He mentioned the possibility                                                               
of a  provision in HB 283  to change the allocation  to an eight-                                                               
year period to undo the damage done in the last eight years.                                                                    
                                                                                                                                
MR.  HOGAN   suggested  there  are  other   options  including  a                                                               
professional board.   He said the  method that staff has  used to                                                               
determine whether  proposals are allowed  to go before  the board                                                               
has some real  problems with it.  He remarked  that he feels that                                                               
as  a  member  of  the  public,  his  access  had  been  severely                                                               
hampered.   He  reiterated that  there are  presently some  major                                                               
problems  with  the   Board  of  Fisheries.    He   said  HB  283                                                               
illustrates the  problem that  the commercial  [fishing] industry                                                               
has, which is that it has been too conciliatory for too long.                                                                   
                                                                                                                                
Number 1000                                                                                                                     
                                                                                                                                
PAUL SEATON testified via teleconference.   He told the committee                                                               
that he  had several concerns.   He said  it sounded as  if there                                                               
would be a  maximum of two members who would  be eligible to have                                                               
commercial fishing  experience.  He suggested  that presently the                                                               
Board  of  Fisheries  and the  membership  are  totally  oriented                                                               
towards  and focused  on the  salmon issue  - predominantly,  the                                                               
salmon  issue in  Cook Inlet.   He  noted that  several different                                                               
fisheries  exist  around  the state,  however,  including  troll,                                                               
longline,   dive,  net,   pot,   shell[fish],  and   ground[fish]                                                               
fisheries.  The  level of expertise to cover  all those fisheries                                                               
that  can  be obtained  from  only  two members  commercially  is                                                               
pretty small,  he suggested.  With  100 days of meetings  a year,                                                               
almost  no truly  active commercial  fishermen  [can attend]  and                                                               
still be active in many fisheries.                                                                                              
                                                                                                                                
MR. SEATON  proposed changing to a  split board:  one  segment to                                                               
deal with  salmon, which is  where the balanced board  might need                                                               
to be;  and another  to deal  with all the  other fisheries.   He                                                               
suggested it would  [resolve] a lot of contention.   In addition,                                                               
he indicated  the commercial-fishermen board positions  should be                                                               
changed to allow  a recently retired person from  the industry to                                                               
serve.   He  mentioned  that  retired people  have  the time  and                                                               
availability  to  serve,  and  could   add  more  to  the  board.                                                               
Furthermore, he  indicated that although  there are  solutions to                                                               
the   board's   problem,   assigning   [additional]   seats   and                                                               
specifically limiting  the position  to a  maximum of  two people                                                               
with  commercial experience  would  not solve  the  problem.   He                                                               
mentioned another  point he'd  made in  a facsimile  submitted to                                                               
the committee.                                                                                                                  
                                                                                                                                
Number 1192                                                                                                                     
                                                                                                                                
WILLIAM  SULLIVAN testified  via  teleconference in  favor of  HB
283.  He indicated he disagreed  with the comment about the board                                                               
functioning well  in the past.   He said he  would like to  see a                                                               
balanced board.   Although that may  not prove to be  the end-all                                                               
solution, it could be effective for  the next six years and could                                                               
be assessed during  that time.  If the current  board has worked,                                                               
then it could be modified.                                                                                                      
                                                                                                                                
MR. SULLIVAN said he has some  concerns about HB 283, such as the                                                               
five-years-of-active-service   requirement,    which   might   be                                                               
somewhat exclusive.   In  addition, he  voiced concern  about the                                                               
wording  "actively  engaged  in   the  profession  of  commercial                                                               
fishing".    Furthermore,  he   suggested  the  committee  should                                                               
include the legislative  intent there.  He said it  seemed to him                                                               
it could be  construed that there is  currently active commercial                                                               
fishery representation.   He mentioned  that the  testimony about                                                               
retired  commercial fishermen  was a  good point.   He  specified                                                               
that he supports HB 283 as it stands.                                                                                           
                                                                                                                                
Number 1375                                                                                                                     
                                                                                                                                
BOB  MERCHANT, President,  United  Cook  Inlet Drift  Association                                                               
(UCIDA), testified via  teleconference in support of  the goal of                                                               
HB  283, to  guarantee  a  balanced board.    He said  commercial                                                               
fishing  and sport  fishing are  the two  biggest user  groups of                                                               
fisheries  in  the  state;  [the   addition  of]  two  commercial                                                               
positions and  two sport positions  to the board  addresses both,                                                               
and adds  that experience and  expertise to  the board.   He said                                                               
UCIDA  would  be satisfied  with  two  positions, although  three                                                               
positions  could  be at-large,  giving  the  legislature and  the                                                               
governor the opportunity to appoint other people.                                                                               
                                                                                                                                
MR. MERCHANT advised the committee  that UCIDA also supports term                                                               
limits.  He said  the Board of Fisheries is supposed  to be a lay                                                               
board  of concerned  citizens who  are experienced  in the  areas                                                               
that the  boards are addressing;  consequently, UCIDA  feels that                                                               
term  limits  will serve  to  prevent  people from  becoming  too                                                               
professional on the  board and to keep  more of a lay  board.  In                                                               
addition, he  pointed out the section  of the bill that  allows a                                                               
board member  to skip a  term and then  serve on the  board again                                                               
for two  more terms.  He  said if an individual  comes along that                                                               
is  especially  good at  what  he  or  she does,  this  provision                                                               
wouldn't  prevent that  person from  serving on  the board  for a                                                               
very long time.                                                                                                                 
                                                                                                                                
Number 1501                                                                                                                     
                                                                                                                                
JEFF KING  testified via teleconference.   He told  the committee                                                               
he thought  the most important  point is that  creative, thinking                                                               
individuals are  appointed to the  Board of Fisheries.   He said,                                                               
"We bid  the designated  seats here  on our  local fish  and game                                                               
advisory board,  and I  think it had  just [the]  reverse effect:                                                               
it seemed like  we ended up with people that  were more ingrained                                                               
than they had before."                                                                                                          
                                                                                                                                
MR. KING  referred to a  bill sponsored by  [then] Representative                                                               
Austerman from a prior legislature.   He said that bill created a                                                               
fourth  user group,  which was  "guided sportsman."   Up  to that                                                               
time, the user groups in  the state were subsistence, commercial,                                                               
and  sport; consequently,  now there  is a  fourth user  group in                                                               
state code, he  explained.  He said he doesn't  think HB 283 goes                                                               
far  enough to  give a  fair perspective  on the  board to  that;                                                               
furthermore,  if there  are going  to  be two  sport seats,  then                                                               
there  should be  another two  seats for  the fourth  user group,                                                               
which is  guide-chartered users.   He  suggested that  because of                                                               
previous legislation, the Board  of Fisheries does have authority                                                               
to  micromanage and  to allocate  within sport  users differently                                                               
than  charter fishermen  and noncharter  fishermen.   He  brought                                                               
attention to page 2,  sub-subparagraph (ii), "combined experience                                                               
as sport  fisherman, personal use fisherman,  or commercial sport                                                               
operator  in  the  state".    He suggested  that  all  four  user                                                               
[groups] need to be incorporated in order to create fairness.                                                                   
                                                                                                                                
Number 1637                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked what the fourth user group is.                                                                       
                                                                                                                                
CO-CHAIR SCALZI said the fourth group is commercial guide.                                                                      
                                                                                                                                
Number 1652                                                                                                                     
                                                                                                                                
REPRESENTATIVE FATE  asked Mr. Hogan  why he felt that  the board                                                               
was "broken" and what was causing it.                                                                                           
                                                                                                                                
MR. HOGAN replied that one reason  the board is broken is because                                                               
it  is packed  with  sport-fishing  interests; consequently,  the                                                               
commercial-fishing income  of the  entire board  probably doesn't                                                               
exceed  $10,000.    In  addition, he  voiced  concern  with  some                                                               
internal [issues]  such as the  committee structure  and limiting                                                               
access to the  public.  He remarked that he  appreciated that the                                                               
committee was addressing  the problem.  He  suggested that recent                                                               
board decisions  had put the  commercial salmon industry  in Cook                                                               
Inlet "on its knees."                                                                                                           
                                                                                                                                
CO-CHAIR  SCALZI called  upon Lance  Nelson, indicating  that Mr.                                                               
Nelson is counsel for the Board of Fisheries.                                                                                   
                                                                                                                                
Number 1777                                                                                                                     
                                                                                                                                
LANCE  NELSON,  Assistant  Attorney  General,  Natural  Resources                                                               
Section,   Civil  Division   (Anchorage),   Department  of   Law,                                                               
testified  via  teleconference.    He   told  the  committee  his                                                               
comments  would  relate  to policy  concerns  rather  than  legal                                                               
issues.  He said the administration  is opposed to HB 283 because                                                               
it is viewed  as unnecessary.  He mentioned  the current standard                                                               
set  by the  legislature, including  interest in  public affairs,                                                               
good judgment, knowledge,  ability in the field of  action of the                                                               
Board of Fisheries, and diversity  of interest in points of view.                                                               
Those  standards  -  especially combined  with  the  confirmation                                                               
process itself,  whereby the legislature  has a chance  to review                                                               
these standards  - should  be sufficient  to guarantee  a capable                                                               
Board of Fisheries, he explained.                                                                                               
                                                                                                                                
MR. NELSON  said further limitations  might prevent  building the                                                               
best possible board  by placing some very  capable people outside                                                               
of  the  pool of  candidates.    In  addition, there  is  concern                                                               
because  definitions  are  always under  dispute.    Furthermore,                                                               
there  is  more  than  one  kind  of  commercial  fishing,  sport                                                               
fishing, subsistence fishing,  and so forth.   For example, there                                                               
have  been  disputes  over  whether  someone  is  deemed  a  real                                                               
commercial fisherman, he said.                                                                                                  
                                                                                                                                
MR.  NELSON offered  that the  current language  of HB  283 might                                                               
prevent  retired fishermen  from serving  on the  board, and  yet                                                               
they might have the most experience  and time available.  He said                                                               
there  is  concern  that  the person  appointed  should  be  more                                                               
interested  in  the  general public  interest  rather  than  just                                                               
representing a particular constituency;  furthermore, if the goal                                                               
is  representation of  a particular  user group  or constituency,                                                               
then there aren't enough seats  among a seven-member board to try                                                               
to do that.  He pointed out  that the board, of necessity, has to                                                               
be more broadminded than just  focusing on a particular interest.                                                               
He said there are concerns that  term limits will, in some cases,                                                               
prevent  the  most  qualified  and  capable  people,  perhaps  at                                                               
critical times, from continuing to serve in the board process.                                                                  
                                                                                                                                
CO-CHAIR SCALZI  indicated the  intent is  to do  what is  in the                                                               
best interest of the State of Alaska.                                                                                           
                                                                                                                                
Number 1929                                                                                                                     
                                                                                                                                
REPRESENTATIVE   McGUIRE   referred    to   the   definition   of                                                               
qualifications  for   Board  of   Fisheries  members.     Drawing                                                               
attention to page 2,  line 7, she asked Mr. Nelson  if he had any                                                               
consternation about determining experience  as a sport fisherman,                                                               
which  she  said  seemed  vague.    In  addition,  she  asked  if                                                               
[determining experience] is the same  for subsistence users.  She                                                               
remarked  that the  commercial fishing  category  seems the  most                                                               
concrete of the three categories.                                                                                               
                                                                                                                                
MR.  NELSON  replied   that  statutory  interpretation  generally                                                               
creates legal  issues; therefore, the reason  he hadn't addressed                                                               
the  legal issues  is because  this is  a unique  situation.   He                                                               
explained that the  position taken before the courts  in the past                                                               
has been  that these  standards will have  to be  interpreted and                                                               
applied by  the legislature itself;  consequently, they  won't be                                                               
subject  to court  challenge  because  it is  not  felt  to be  a                                                               
justifiable  question, and  the courts  don't have  the right  to                                                               
second-guess   what   the    legislature   decides   during   the                                                               
confirmation  process.    He  said  the  governor  would  appoint                                                               
candidates  to the  board;  the legislature  would  then look  at                                                               
these standards  and decide whether  they were met  in confirming                                                               
the candidates  or not.  He  remarked that if it  were subject to                                                               
court challenge,  then he would  have more concerns;  however, it                                                               
is more  of a policy  choice, and the legislature  itself decides                                                               
whether these  are standards that  it will  be able to  apply, as                                                               
opposed to whether they'd be challenged in court later.                                                                         
                                                                                                                                
Number 2066                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA asked Mr.  Nelson what the composition of                                                               
the current board is.                                                                                                           
                                                                                                                                
MR. NELSON  said the current  board has one member  [Larry Engel]                                                               
who is  a retired  biologist from the  Alaska Department  of Fish                                                               
and Game  (ADF&G) and who  worked during his career  primarily in                                                               
the  sport-fishery  management  area.    Another  member,  Virgil                                                               
Umphenour, is from Fairbanks, owns  a "fish processing industry,"                                                               
and has  fished commercially  in the  past; furthermore,  his son                                                               
holds  a commercial  fishing  permit  on the  Yukon  River.   Mr.                                                               
Nelson  said with  the way  the  commercial fishery  has gone  in                                                               
Fairbanks,  opportunity  has  been  [limited]  for  use  of  [the                                                               
permit] in  the recent  past.  He  reiterated that  Mr. Umphenour                                                               
does buy and process commercially caught fish.                                                                                  
                                                                                                                                
MR. NELSON continued  with board members.  He said  John White is                                                               
a  dentist  in  the  Bethel area  who  holds  several  commercial                                                               
fishing permits  for salmon and  other species.   Those fisheries                                                               
have   also   been  severely   limited   in   the  recent   past;                                                               
consequently,  Mr.  White's  involvement  is  limited  right  now                                                               
because of  that.  Also,  Grant Miller is a  commercial fisherman                                                               
from  the  Sitka area  who  currently  operates a  "herring  bait                                                               
pound" on a  regular basis; in addition, he  does some tendering;                                                               
in the past he was a seiner and longliner in Southeast Alaska.                                                                  
                                                                                                                                
MR. NELSON  continued.   He said  Russell Nelson  from Dillingham                                                               
isn't currently  involved in  commercial fishing  but was  in the                                                               
past, in  the Bristol  Bay area.   Ed Dersham  is a  retired drug                                                               
enforcement agent  and is primarily a  sport-charter operator out                                                               
of the Anchor  River - Deep Creek area.   In addition, Dan Coffey                                                               
is an attorney  who has been involved in  ownership of commercial                                                               
fishing  boats  in  the  past; he  has  some  commercial  fishing                                                               
experience  but has  primarily been  practicing law  in Anchorage                                                               
for quite a few years.                                                                                                          
                                                                                                                                
REPRESENTATIVE KERTTULA  suggested the  board should  designate a                                                               
spot for women.                                                                                                                 
                                                                                                                                
MR. NELSON  remarked that there  have been  women representatives                                                               
in the past.                                                                                                                    
                                                                                                                                
Number 2223                                                                                                                     
                                                                                                                                
PAUL  SHADURA,   Vice  President,  Kenai   Peninsula  Fisherman's                                                               
Association (KPFA),  testified via teleconference.   He indicated                                                               
he tells people that there  are no active commercial fishermen on                                                               
the  Board of  Fisheries.   He  said the  board controls  salmon,                                                               
herring, and  other state-water fisheries;  however, there  is no                                                               
multi-experienced, active,  commercial fisherman on the  Board of                                                               
Fisheries.   There are board members  who have been on  the Board                                                               
of  Fisheries for  nine years  without a  break, he  pointed out.                                                               
With  the  majority of  state  fisheries  managed for  commercial                                                               
fisheries  and  a  substantial  "intermanagement"  of  the  sport                                                               
fisheries, he  suggested it would  seem practical  and reasonable                                                               
that there should be a  direct relationship between the users and                                                               
the regulators.                                                                                                                 
                                                                                                                                
MR.  SHADURA   presented  the  question   of  how   anyone  could                                                               
understand  the  intricate  knowledge  and  years  of  experience                                                               
required to  become a commercial  fisherman if that  person isn't                                                               
in fact  a commercial fisherman;  furthermore, he said it  is not                                                               
expertise derived from  only written material, but  is from years                                                               
of being  on the sea trying  to adjust to all  of the challenges.                                                               
He said, "No  less important is the charter operator  or guide or                                                               
the recreationalist who has limited time  to get his or her share                                                               
of Alaska's bounty."                                                                                                            
                                                                                                                                
MR. SHADURA remarked that all  [users] deserve representation and                                                               
should be able to present  their needs to someone who understands                                                               
and debates the  issues when regulations and  changes are brought                                                               
forth.  He suggested that  the board rarely debates any decisions                                                               
in the  open; furthermore, 7-0 is  the usual vote.   He indicated                                                               
there had never  been a commercial setnet fisherman  on the Board                                                               
of Fisheries;  however, there are  more setnet permit  holders in                                                               
Alaska than  gillnetters, seiners,  trollers, or longliners.   He                                                               
said   the  setnet   fishery  [participants]   haven't  had   the                                                               
opportunity to  have their say  or remedy  regulatory inequities,                                                               
and are excluded from the process.                                                                                              
                                                                                                                                
Number 2340                                                                                                                     
                                                                                                                                
MR. SHADURA  said many prominent sport  fishing leaders advocated                                                               
designated   seats   in   the  1994   transitional   papers   and                                                               
recommendations provided  to Governor Knowles; in  addition, some                                                               
thought four commercial  seats would be right.   In Petersburg in                                                               
October,  27  fishing  organizations  representing  approximately                                                               
10,000 fishermen  approved designated seats as  the top priority,                                                               
including  three commercial  seats,  three sport  seats, and  one                                                               
subsistence  seat; furthermore,  the KPFA  supports this  action.                                                               
He  stated that  KPFA  doesn't support  the committee  substitute                                                               
(CS),  although they  appreciate the  efforts of  legislators who                                                               
have tried  to offer  some understanding  and solutions  to these                                                               
major inequities.                                                                                                               
                                                                                                                                
Number 2407                                                                                                                     
                                                                                                                                
ROBIN  SAMUELSEN  testified  via  teleconference.   He  told  the                                                               
committee he is  a former Board of Fisheries member  who served a                                                               
one-year term.   He indicated  he would  not be willing  to serve                                                               
again.    He   said  if  it  isn't  broken,  then   why  fix  it.                                                               
Furthermore,  he said  he  thought mechanisms  were  in place  to                                                               
ensure  that  quality  people  get  appointed  to  the  Board  of                                                               
Fisheries.  The governor makes  the nomination and then, in joint                                                               
session, the  House and the  Senate confirm the nominees;  in the                                                               
past, however, [some] people haven't  been confirmed to the Board                                                               
of Fisheries.                                                                                                                   
                                                                                                                                
MR.  SAMUELSEN  said in  regard  to  term  limits, he  wanted  to                                                               
applaud  those people  who are  taking time  from themselves  and                                                               
their families  to volunteer to  sit on  the board.   He remarked                                                               
that he had  been voted down on issues with  the present Board of                                                               
Fisheries.  He  offered his view that the Board  of Fisheries had                                                               
fleshed things out very well.   The committee process is working,                                                               
and there is  a chance for people  to be heard, he  remarked.  He                                                               
referred to a situation involving  the state and crab management.                                                               
He  indicated there  were  bigger issues  than  how many  various                                                               
fisheries  were  represented  on  the Board  of  Fisheries.    He                                                               
suggested there were bigger resource  issues with the collapse of                                                               
the salmon  [fisheries] throughout  the state.   He  indicated he                                                               
felt the  status quo should  be left intact.   He stated  that he                                                               
opposed HB 283.                                                                                                                 
                                                                                                                                
Number 2515                                                                                                                     
                                                                                                                                
CO-CHAIR  SCALZI asked  Mr.  Samuelsen if  he  thought the  North                                                               
Pacific  [Fishery] Management  Council  (NPFMC)  would bode  well                                                               
under  the  same type  of  lay-board  process without  designated                                                               
seats.                                                                                                                          
                                                                                                                                
MR. SAMUELSEN  said Alaska's  winning track  record at  the NPFMC                                                               
reflects that Alaska is doing pretty  well.  He said they do have                                                               
a term  limit; in addition,  a member  can serve more  than three                                                               
terms on the NPFMC.                                                                                                             
                                                                                                                                
Number 2540                                                                                                                     
                                                                                                                                
CO-CHAIR  SCALZI mentioned  seat proportions,  including managers                                                               
from ADF&G,  processors, commercial  fishing interests,  a sports                                                               
advocate, and  representatives from  different states.   He asked                                                               
Mr.  Samuelsen   if  he   felt  that  was   an  advantage   or  a                                                               
disadvantage.  Also, he said he would  like to see a lay board on                                                               
[NPFMC].                                                                                                                        
                                                                                                                                
MR. SAMUELSEN said he is  commercial fisherman who holds a sport-                                                               
fish license,  has a history  of subsistence, is a  former member                                                               
on  the Board  of Fisheries,  and has  represented Alaska  on the                                                               
NPFMC.  Regardless  of affiliation, it's the  dedication that the                                                               
individual needs to  put forth, to represent  the resource first,                                                               
and all  other resource users.   He indicated that when  he was a                                                               
member  on  the  Board  of Fisheries,  he  never  considered  not                                                               
talking  to  fishermen from  other  fisheries  because of  public                                                               
perception.   He remarked  that he  represented the  resource and                                                               
represented all of the user groups.                                                                                             
                                                                                                                                
Number 2610                                                                                                                     
                                                                                                                                
CO-CHAIR  SCALZI  indicated HB  283  would  be held  for  further                                                               
consideration.                                                                                                                  
                                                                                                                                
HB 284-BOARD OF FISHERIES CONFLICTS OF INTEREST                                                                               
                                                                                                                                
[Contains discussion of HB 283]                                                                                                 
                                                                                                                                
Number 2631                                                                                                                     
                                                                                                                                
CO-CHAIR SCALZI announced that the  next order of business before                                                               
the committee would  be HOUSE BILL NO. 284,   "An Act relating to                                                               
participation  in  matters  before  the  Board  of  Fisheries  by                                                               
members of the board; and providing  for an effective date."  [HB
284 was sponsored by Representative Scalzi.]                                                                                    
                                                                                                                                
Number 2681                                                                                                                     
                                                                                                                                
SUE  ASPELUND,  Executive  Director, Cordova  District  Fishermen                                                               
United  (CDFU),  testified via  teleconference.    She said  CDFU                                                               
thinks that HB 284 is  very important; furthermore, CDFU believes                                                               
it  is  unfair  to  withhold  full  participation  in  this  very                                                               
important  process to  an entity  that  is there  because of  its                                                               
expertise and  knowledge in  the fisheries arena.   She  said she                                                               
had  personally  sat  through  a number  of  Board  of  Fisheries                                                               
meetings  where  members  were  conflicted  out;  those  members'                                                               
invaluable knowledge would have  been helpful to the proceedings,                                                               
but they were precluded from  providing that input because of the                                                               
conflict-of-interest statute.   Emphasizing the importance  of HB
284, she urged that it be moved from committee.                                                                                 
                                                                                                                                
Number 2739                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA asked  if those  members were  precluded                                                               
from  giving  the information  because  they  weren't allowed  to                                                               
deliberate or if it was because  there was a short amount of time                                                               
for testimony.                                                                                                                  
                                                                                                                                
MS. ASPELUND  said members with  a conflict of interest  are able                                                               
to  participate  as  a  member  of the  public.    During  public                                                               
testimony,  they may  sit  at the  public  testifiers' table  and                                                               
provide their five  minutes of testimony.  However,  a member who                                                               
has a  conflict of interest  isn't allowed to participate  in the                                                               
committee  meetings,  deliberations, or  voting,  she  said.   If                                                               
particular  knowledge on  an issue  comes up  during a  committee                                                               
[meeting]  or during  deliberations  that may  not  have come  up                                                               
during  public testimony,  members  with a  conflict of  interest                                                               
aren't  allowed to  provide input;  consequently, at  a very  key                                                               
part of the process they  are precluded because of their conflict                                                               
of interest.                                                                                                                    
                                                                                                                                
Number 2795                                                                                                                     
                                                                                                                                
ROBIN  SAMUELSEN  testified  via  teleconference.   He  told  the                                                               
committee he fully  supported Ms. Aspelund's testimony.   He said                                                               
the  conflict-of-interest rules  are really  restrictive.   There                                                               
are  seven [Board  of Fisheries]  members; there  are checks  and                                                               
balances  in the  board system.   Consequently,  it's a  thorough                                                               
public process.   Under  the present  conflict-of-interest rules,                                                               
however, he  said he doesn't  think the decisions  being rendered                                                               
are  the best  decisions; a  [board  member] who  has a  conflict                                                               
isn't  allowed to  participate in  the discussion.   He  said the                                                               
[conflict-of-interest rules]  have hindered  the process  when he                                                               
was  on the  board; it  has  become more  complicated since  that                                                               
time.  He referred to the  disclosure statement, which he said he                                                               
felt was very cumbersome and unwieldy.                                                                                          
                                                                                                                                
Number 2846                                                                                                                     
                                                                                                                                
BOB  MERCHANT, President,  United  Cook  Inlet Drift  Association                                                               
(UCIDA),  testified via  teleconference.   He told  the committee                                                               
UCIDA supports the  passage of HB 284;  furthermore, he concurred                                                               
with  Ms. Aspelund's  testimony and  said that  was also  UCIDA's                                                               
position on HB 284.                                                                                                             
                                                                                                                                
Number 2858                                                                                                                     
                                                                                                                                
WILLIAM  SULLIVAN  testified via  teleconference.    He told  the                                                               
committee  he  supported HB  284.    He  asked the  committee  to                                                               
consider the  effects on  the board  with the  passage of  HB 284                                                               
without the passage  of HB 283.  He remarked  that if one accepts                                                               
the idea that  the board is presently weighted  in one direction,                                                               
it may go even  more in that direction by freeing  up some of the                                                               
conflict language.                                                                                                              
                                                                                                                                
Number 2885                                                                                                                     
                                                                                                                                
PAUL  SEATON testified  via  teleconference.   He  referred to  a                                                               
facsimile  he'd  submitted  to  the   committee.    He  told  the                                                               
committee he was  in opposition to HB 284.   Commercial fishermen                                                               
on  the  Board   of  Fisheries  can  fully   participate  in  any                                                               
discussion  of  commercial  fisheries  other  than  the  specific                                                               
species  and area  that person  has a  financial interest  in, he                                                               
explained.   Every  state in  the Union  has conflict-of-interest                                                               
laws; furthermore, the laws had  to be passed because conflict of                                                               
interest  results in  bad regulations  and lots  of problems;  he                                                               
pointed out that judges or  jurors don't make decisions on things                                                               
in which they have a financial participation.                                                                                   
                                                                                                                                
MR. SEATON said this bill  would essentially convert the Board of                                                               
Fisheries into the same structure  as the [North Pacific] Fishery                                                               
Management  Council (NPFMC)  on the  federal level;  in addition,                                                               
[NPFMC] is exempt from conflict-of-interest  laws, and can accept                                                               
money  from anybody  or be  hired as  a lobbyist  by anybody,  in                                                               
spite of a financial interest.   Furthermore, [NPFMC members] can                                                               
be strong participants in one  particular segment of the industry                                                               
and can vote in favor of that  segment of the industry.  He noted                                                               
the vast  difference in legal  and practical aspects  between the                                                               
Board of Fisheries and the  [NPFMC], since the latter is advisory                                                               
in nature.  He offered that [HB 284] is a terrible idea.                                                                        
                                                                                                                                
TAPE 02-10, SIDE B                                                                                                              
Number 2970                                                                                                                     
                                                                                                                                
MR. SEATON suggested that Alaska  and all other states have drawn                                                               
up conflict-of-interest  laws because when people  are allowed to                                                               
create  regulations  despite  having   a  financial  conflict  of                                                               
interest, it  causes problems.  This  is not a problem  that "we"                                                               
need to  inject on  top the  current problems  with the  Board of                                                               
Fisheries, he said.  He urged the committee to reject HB 284.                                                                   
                                                                                                                                
Number 2921                                                                                                                     
                                                                                                                                
LANCE  NELSON,  Assistant  Attorney  General,  Natural  Resources                                                               
Section,   Civil  Division   (Anchorage),   Department  of   Law,                                                               
testified  via teleconference.   He  informed the  committee that                                                               
the administration  is opposed to  HB 284.   He said  the current                                                               
ethical   standards   give   the  Board   of   Fisheries   higher                                                               
credibility.   In addition, people  are usually or  almost always                                                               
present  at the  board meetings  who can  work on  committees and                                                               
give  the  same information  and  viewpoint  as conflicted  board                                                               
members,  he suggested.   He  said conflicted  board members  can                                                               
give  public  testimony and  talk  to  other Board  of  Fisheries                                                               
members;   however,  they   can't  participate   in  the   actual                                                               
deliberations and voting.                                                                                                       
                                                                                                                                
Number 2884                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA  asked Mr.  Nelson if  he could  offer an                                                               
example  of what  is concerning  people about  board members  who                                                               
have a financial conflict not being allowed to deliberate.                                                                      
                                                                                                                                
MR. NELSON said  a board meeting begins with  public testimony in                                                               
which any  member of  the public  can testify  for a  limited but                                                               
equal  amount of  time  to  the board  and  can answer  questions                                                               
there.  The  board will assign proposals to  committees, in which                                                               
there is  a panel of  public members  appointed to speak  for the                                                               
varied  interests  that are  following  the  proposal, either  in                                                               
support or  opposition.  Subsequently,  the committee  prepares a                                                               
report and makes  a recommendation to the full  board, which then                                                               
deliberates  on  the proposal.    The  deliberations are  on  the                                                               
record and open to the public.   The board takes frequent breaks;                                                               
consequently, nothing  prevents the conflicted board  member from                                                               
talking  to  the other  members,  the  public, or  representative                                                               
interest groups during that time.   However, the conflicted board                                                               
member  would be  prevented  from discussing  or  arguing for  or                                                               
against the proposal, and from voting.                                                                                          
                                                                                                                                
Number 2779                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA asked Mr. Nelson  to describe the kind of                                                               
conflict that would remove a member from deliberating or voting.                                                                
                                                                                                                                
MR. NELSON  said the major  conflict would be  if a member  has a                                                               
significant financial  interest at  stake in  the proposal.   For                                                               
example,  if a  proposal  would increase  an  allocation to  [the                                                               
conflicted  board member's  user group]  or allow  the member  to                                                               
financially benefit,  then that member is  prevented from voting.                                                               
Board  members often  remove themselves  voluntarily if  there is                                                               
any question of conflict of  interest, to avoid the appearance of                                                               
unethical conduct.   The other  interest at stake  usually arises                                                               
when the  board member -  or an  organization in which  the board                                                               
member is  a policymaking  officeholder -  has a  proposal before                                                               
the board,  or when that organization  has taken a position  on a                                                               
proposal  before  the  board,  or  in some  cases  in  which  the                                                               
conflicted board  member has "shepherded"  a proposal  through an                                                               
organization  and  that  organization  has  endorsed  it.    Such                                                               
interests are defined as personal  interests, and the [conflicted                                                               
board member] is prevented from  deliberating and voting on those                                                               
proposals.                                                                                                                      
                                                                                                                                
Number 2684                                                                                                                     
                                                                                                                                
PAUL  SHADURA,   Vice  President,  Kenai   Peninsula  Fisherman's                                                               
Association (KPFA),  testified via  teleconference.  He  told the                                                               
committee KPFA supports HB 284.  He said:                                                                                       
                                                                                                                                
     We  could give  you a  good  example:   in Cook  Inlet,                                                                    
     where  you have  three sport  representatives and  also                                                                    
     Mr. Umphenour  is a registered guide,  the situation if                                                                    
     there was an appointment  for a commercial fisherman to                                                                    
     be there,  [Mr. Umphenour]  would be  opted out  by the                                                                    
     current regulations  or the policy from  discussing any                                                                    
     of  his expertise  - so  making his  expertise and  his                                                                    
     knowledge moot.                                                                                                            
                                                                                                                                
MR. SHADURA  said he could see  the conflict if it  were a direct                                                               
benefit to an individual.  But  for general classes of people, he                                                               
said he had a  hard time thinking it is a  conflict.  He remarked                                                               
that if  that were  so, then  there would be  a lot  of conflicts                                                               
"crossing each  other for many  different avenues in  the state."                                                               
He said for  "us" that's a way to communicate.   Referring to Mr.                                                               
Nelson's testimony regarding committee  process, he reported that                                                               
after the public  speaks during the committee  process, there are                                                               
usually  two  board  members  who then  debate  and  discuss  the                                                               
[issue] with other people and come  out with a report that is not                                                               
on the  record.  After the  decision is made, a  committee report                                                               
is  generated, which  doesn't necessarily  reflect what  was said                                                               
during the committee  forum.  Mr. Shadura remarked  that he'd had                                                               
a problem with  that particular situation; those  two members had                                                               
then discussed  their views with  the rest of the  board members.                                                               
He pointed out  that there could be some  very real discrepancies                                                               
and conflicts because of that.                                                                                                  
                                                                                                                                
Number 2570                                                                                                                     
                                                                                                                                
CARL  ROSIER, Alaska  Outdoor Council  (AOC), told  the committee                                                               
AOC  is opposed  to HB  284.   This  has  been one  of the  major                                                               
factors that's  made the  board such  a trustworthy  operation in                                                               
the state,  he remarked.   He said the criticism  directed toward                                                               
the NPFMC  on this  issue seems  to be a  constant din  of people                                                               
criticizing that council as a  result of [members] with conflicts                                                               
of interest.   He  said, "Millions of  dollars involved  in every                                                               
decision that that  council makes - of course, on  this, I am not                                                               
here to  say whether it's  right or wrong."   He added  that from                                                               
the  public's  perception  of  the   council  sessions  on  this,                                                               
however, conflict  of interest  is close  to the  top as  a major                                                               
problem.                                                                                                                        
                                                                                                                              
MR.  ROSIER suggested  the Board  of Fisheries  doesn't get  that                                                               
same criticism; nor does the board  overstep its bounds as far as                                                               
conflict  of interest  is  concerned.   He said  in  40 years  of                                                               
participating in  or observing  board sessions  in the  state, he                                                               
had  never seen  an issue  yet that  the board  couldn't come  to                                                               
resolution on,  and individuals who  were conflicted  out availed                                                               
themselves of  opportunities to participate  on the fringes.   He                                                               
said  in order  to  maintain  that credibility  on  the Board  of                                                               
Fisheries, it should  continue to be subject  to the conflict-of-                                                               
interest provisions.                                                                                                            
                                                                                                                                
Number 2460                                                                                                                     
                                                                                                                                
CO-CHAIR  SCALZI  indicated HB  284  would  be held  for  further                                                               
consideration.                                                                                                                  

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