Legislature(2003 - 2004)

03/03/2004 03:30 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
         SB 347-COMM. FISHING MORATORIA, INCL. AK GULF                                                                      
                                                                                                                                
VICE  CHAIR  THOMAS  WAGONER  announced  SB  347  to  be  up  for                                                               
consideration.                                                                                                                  
                                                                                                                                
SENATOR BEN STEVENS,  sponsor, moved to adopt  the CSSB 347(RES),                                                               
version \I,  for discussion. There  were no objections and it was                                                               
so ordered.                                                                                                                     
                                                                                                                                
SENATOR  STEVENS explained  that  he sponsored  the  bill at  the                                                               
request of  the Board of  Fisheries, the North  Pacific Fisheries                                                               
Management   Council   and   the  Gulf   of   Alaska   Groundfish                                                               
Rationalization Task  Force. The task  force is a  combination of                                                               
the Board  of Fish,  the Department of  Law, the  National Marine                                                               
Fisheries  Service and  the  North  Pacific Fisheries  Management                                                               
Council  that has  been meeting  for  almost two  years with  the                                                               
mission  to pursue  approaches to  provide harvest  opportunities                                                               
under the Gulf of Alaska  rationalization program in state waters                                                               
that does not conflict with state law.                                                                                          
                                                                                                                                
He endorses this  bill because he was asked to  sponsor it by all                                                               
the aforementioned organizations and  handed out information that                                                               
graphically  indicated the  growth  rates of  numbers of  fishing                                                               
vessels and  the dates they  fished. In 1985, 2,700  vessels were                                                               
registered for halibut  statewide and in 1991,  there were 4,400.                                                               
In  1994,  3,400  vessels  were   registered  and  in  1995  when                                                               
rationalization was  implemented, the  number went down  to 2000.                                                               
The same thing occurs in the sablefish industry.                                                                                
                                                                                                                                
     This  bill is  an  attempt to  prevent the  instability                                                                    
     that occurred  during this  period of  deliberation. It                                                                    
     was  instability  for participants...  the  communities                                                                    
     that were  dependent on  harvesting that  resource, the                                                                    
     instability  that occurred  for  the  managers of  that                                                                    
     resource.  We're  now at  another  period  in time,  10                                                                    
     years    after    implementation    of    that    first                                                                    
     rationalization     program,    to     where    there's                                                                    
     contemplation of  rationalization in probably  the most                                                                    
     complex  fishery in  the North  Pacific,  which is  the                                                                    
     Gulf  of  Alaska.  There's more  participants  in  that                                                                    
     fishery  than  in  any  other  fishery  in  the  state.                                                                    
     There's  more communities  involved than  in any  other                                                                    
     fishery  in the  state; there's  more species  involved                                                                    
     than in any other fisheries in the state.                                                                                  
                                                                                                                                
SENATOR  STEVENS  explained  that  SB 347  has  two  main  parts.                                                               
Sections 2  and 8 relate  to statutes authorizing  the Commercial                                                               
Fisheries Entry  Commission (CFEC) to  administratively establish                                                               
a temporary moratorium  on entrants into the  fishery. Sections 1                                                               
through  9  establish a  moratorium  in  the  Gulf of  Alaska  on                                                               
specific  state water  groundfisheries that  were recommended  by                                                               
the Gulf of Alaska Groundfish Rationalization Task Force.                                                                       
                                                                                                                                
VICE  CHAIR  WAGONER  asked  if this  only  pertains  to  Alaskan                                                               
waters.                                                                                                                         
                                                                                                                                
SENATOR  STEVENS indicated  that  is correct  and  added that  it                                                               
pertains to state waters up to three miles offshore.                                                                            
                                                                                                                                
VICE CHAIR WAGONER led the  committee to understand that the feds                                                               
have  already had  a  vessel  moratorium for  about  12 years  in                                                               
federal waters.                                                                                                                 
                                                                                                                                
SENATOR GEORGIANNA  LINCOLN asked what the  difference is between                                                               
the original bill and the CS.                                                                                                   
                                                                                                                                
MS. CHERYL  SUTTON, staff  to Senator  Ben Stevens,  replied that                                                               
the  CS  has  no  substantive  differences.  The  department  had                                                               
requested certain  terms to be  used in the original  bill. After                                                               
further  research, the  terms were  changed on  page 7  regarding                                                               
species terminology for consistency in statute.                                                                                 
                                                                                                                                
SENATOR  LINCOLN noted  that  the title  was  changed, also.  She                                                               
asked  for  further  clarification  on the  charts  that  Senator                                                               
Stevens  handed  out. His  answer  was  that she  referenced  the                                                               
number of days  during which a fisher could  catch his/her quota.                                                               
It doesn't mean that a person could fish that number of days.                                                                   
                                                                                                                                
VICE CHAIR  WAGONER answered that  the numbers listed  under 1980                                                               
to  1995 indicate  the  number  of openings  that  were given  to                                                               
halibut  fishermen  to catch  an  areawide  quota. When  the  IFQ                                                               
system  began, a  fisher had  145 days  total in  which to  catch                                                               
his/her percentage of the quota.                                                                                                
                                                                                                                                
SENATOR LINCOLN  said one of  her constituents wanted to  know if                                                               
this bill  in any way would  create more processor shares  as has                                                               
been seen in the Bering Sea Crab Program.                                                                                       
                                                                                                                                
SENATOR STEVENS replied no,  the moratorium specifically prevents                                                               
migration into the  fishery and doesn't develop  any criteria for                                                               
allocation or long-term rationalization plans.                                                                                  
                                                                                                                                
SENATOR KIM ELTON said:                                                                                                         
                                                                                                                                
     The way I  read the bill, especially  the definition of                                                                    
     the  Gulf  of Alaska  being  north  and west  of  Dixon                                                                    
     Entrance, it  would seem to  me that the  provisions of                                                                    
     this  bill  or the  moratorium  would  cover two  open-                                                                    
     access fisheries that we have  in Southeast Alaska, the                                                                    
     Inside cod fishery and some  of the rock fisheries. I'm                                                                    
     assuming that it covers those  fisheries. If not, maybe                                                                    
     the testimony  can expand on it.  If these fisheries...                                                                    
     are   not  over-capitalized,   so  they   could  handle                                                                    
     additional  entry,  how or  would  they  be allowed  or                                                                    
     precluded under provisions of the bill?                                                                                    
                                                                                                                                
SENATOR STEVENS  replied if  fisheries in  the Eastern  Gulf fall                                                               
under 1,2,3 or 4  of the CS, the answer would  be yes. In another                                                               
section of the  bill, the CFEC could develop  a vessel moratorium                                                               
if  it  determined  it  was  necessary,  but  this  bill  doesn't                                                               
implement one there now unless it's listed in section 9.                                                                        
                                                                                                                                
MR. ED DERSHAM, Board of  Fisheries, commented that the Southeast                                                               
groundfisheries  have  been  outside the  workgroup  discussions.                                                               
During federal  fisheries the  state has  a parallel  fishery and                                                               
under the  rationalization program  as contemplated by  the North                                                               
Pacific  Fisheries Management  Council,  the state  would not  be                                                               
able  to continue  to  have state  water  fisheries, because  the                                                               
effort that would be freed up  on the federal side would increase                                                               
the race  for fish  and management problems  in state  waters. In                                                               
order to  get their  arms around fisheries  in the  pot, longline                                                               
and  trawl  fisheries that  take  place  inside state  waters,  a                                                               
temporary  moratorium is  the only  way to  stop new  entry while                                                               
protection for the fisheries and communities are considered.                                                                    
                                                                                                                                
MS. ERIN HARRINGTON, Kodiak, said  she supported the goals of the                                                               
legislation and requested that jig  gear be included in section 9                                                               
that  describes  the  gear  types.  Jigging  is  another  way  of                                                               
targeting cod  and is a fishery  that has new entrants.  In 2002,                                                               
the last year  that ADF&G has a fish report  for the cod fishery,                                                               
54 boats  landed cod in  the jig  fishery. By February  27, 2004,                                                               
there  were 20  new registrants  in  that fishery.  "A number  of                                                               
people  out  there  [are]  doing what  we  call  prospecting  for                                                               
permits." She  thought that was  typical when  rationalization is                                                               
being  discussed.  She  supported  giving  CFEC  the  ability  to                                                               
implement a moratorium or having the Legislature institute it.                                                                  
                                                                                                                                
SENATOR STEVENS responded that Ms.  Harrington has valid concerns                                                               
that need  to be addressed,  but there is valid  reasoning behind                                                               
deleting jig gear that would be explained later in the meeting.                                                                 
                                                                                                                                
MR.   ARNE   FUGLVOG,   President,   Petersburg   Vessel   Owners                                                               
Association,  said he  is  also on  the  North Pacific  Fisheries                                                               
Management Council. He appreciated the  work everyone is doing to                                                               
come  up with  a rationalization  program  that compliments  both                                                               
federal and state  waters. He asked the committee  to not include                                                               
the  Eastern Gulf  in the  bill, because  those fisheries  do not                                                               
have problems with overcapitalization  and reaching their quotas.                                                               
The  Southeast  fisheries  don't  have  the  aggregation  of  the                                                               
species that  happens in  the Gulf  and Southeast  outside waters                                                               
are  not included  in the  federal Gulf  rationalization program.                                                               
Lastly,  he  asked  the  committee  to  consider  why  there  are                                                               
different  fees  for   different  gear  types  and   to  let  the                                                               
participants know.                                                                                                              
                                                                                                                                
MR.   ALVIN   BURCH,    Executive   Director,   Alaska   Draggers                                                               
Association,  said he  is  a commercial  fisherman  and owns  two                                                               
vessels fishing out of Kodiak.                                                                                                  
                                                                                                                                
     In my  association, at any  given time, I  have between                                                                    
     35 and 55 medium  to small vessels, basically trawlers,                                                                    
     but  they  fish  a  significant number  of  halibut  Qs                                                                    
     [quotas] and also some pot fish.                                                                                           
                                                                                                                                
     I approve  of the moratorium,  but the devil is  in the                                                                    
     details. In  1977, we tried  to do a moratorium  on the                                                                    
     shrimp fisheries.  We had about 50  vessels fishing out                                                                    
     of Kodiak.  Talk of that moratorium  triggered, just as                                                                    
     Senator  Stevens   said,  a   run.  Those   50  vessels                                                                    
     generated  175 permits  that would  have been  legal to                                                                    
     fish aboard  vessels... because  every member  on those                                                                    
     vessels got a  permit card, made a  delivery and became                                                                    
     a legal entity...  The moratorium I would ask  to be on                                                                    
     the vessel.                                                                                                                
                                                                                                                                
MR.  ARNE THOMPSON,  Executive Director,  Alaska Crab  Coalition,                                                               
said his  boats fish primarily  for crab  in the Bering  Sea, but                                                               
also fish  for cod with  pots in the Bering  Sea and the  Gulf of                                                               
Alaska and  to a lesser extent  in state waters. They  have had a                                                               
lot  of  experience with  limited  entry  programs and  concurred                                                               
strongly  with  Mr. Burch's  recommendation  that  the permit  be                                                               
assigned to  the vessel.  If permits  go to  the people  who have                                                               
been working on the vessels, you  could end up with an additional                                                               
50 percent of permit holders.                                                                                                   
                                                                                                                                
4:20 p.m.                                                                                                                       
                                                                                                                                
TAPE 04-19, SIDE B                                                                                                            
                                                                                                                              
MR.  JOE CHILDERS,  Director, Western  Gulf of  Alaska Fishermen,                                                               
said his members  fish combination vessels that  are primarily 58                                                               
ft. in length. They fish mostly  in the groundfish, trawl and pot                                                               
fisheries. He  said the  fisheries have  a tremendous  ability to                                                               
stimulate   coastal   development   in  the   Gulf   of   Alaska.                                                               
Rationalizing  the fisheries  jeopardizes  the sustainability  of                                                               
the  existing infrastructure  dramatically. The  ability for  the                                                               
whitefish   industry   to   be  prosecuted   in   a   sustainable                                                               
rationalized manner  is critical  for plants  to remain  open for                                                               
salmon fisheries.                                                                                                               
                                                                                                                                
     It's  very important  that this  gets done.  The reason                                                                    
     that we're here is because  the federal fishery and the                                                                    
     state  fishery  have  a lot  of  overlap.  The  federal                                                                    
     fisheries are  actually managed  across both  state and                                                                    
     federal  [indisc]. The  state  has a  fishery called  a                                                                    
     parallel  fishery,  which  occurs  inside  state  water                                                                    
     during the period  of time when the  federal fishery is                                                                    
     open.  The federal  fishery on  the outside  requires a                                                                    
     limited  entry permit,  an LLP  they  call it,  License                                                                    
     Limitation Program,  but you  can actually  fish inside                                                                    
     state  water  during  the federal  season  without  any                                                                    
     license  other than  just a  fishing  license. So,  the                                                                    
     failure  to  close off  the  state  water part  of  the                                                                    
     fishery   creates  an   unlimited   latency  in   these                                                                    
     fisheries. There  is no way to  rationalize the federal                                                                    
     fishery, because  anybody can pile into  state water to                                                                    
     fish during  the federal season. It  completely thwarts                                                                    
     any efforts  on the  federal side  to do  anything. So,                                                                    
     that's really why this is so important now....                                                                             
                                                                                                                                
     Capacity  reduction in  fisheries is  almost undeniable                                                                    
     that it has  tremendous impact as far  as improving the                                                                    
     fisheries in  terms of economic efficiency,  quality of                                                                    
     recovery, plant utilization, etc.  The ability to react                                                                    
     nimbly to what is  becoming a constant almost avalanche                                                                    
     of environmental  problems with  the Stellar  sea lions                                                                    
     and  now  the  sea  otters.... The  ability  for  these                                                                    
     fishermen  to operate  in a  rationalized manner  where                                                                    
     they can  control their rates of  harvest is essential.                                                                    
     So,  we support  the  moratorium and  we  hope it  goes                                                                    
     quickly.                                                                                                                   
                                                                                                                                
MR.  CHILDERS agreed  that including  Southeast fisheries  is not                                                               
necessary, because  they are  not at all  similar to  the Central                                                               
Gulf and Western Gulf fisheries.                                                                                                
                                                                                                                                
SENATOR STEVENS  directed attention  to page 10,  lines 11  - 16,                                                               
where  those fisheries  are excluded.  The language  is a  little                                                               
awkward because the regions are listed on page 7.                                                                               
                                                                                                                                
MR. CHILDERS  pointed out that using  the time period of  1998 to                                                               
present  is a  problem because  the federal  program has  already                                                               
started  using  the  1995  -  1998  time  period.  Regarding  Mr.                                                               
Thompson's  concern about  the fee  structure,  his vessels  fish                                                               
multiple gear  types and in  multiple areas and they  are looking                                                               
at spending  thousands of dollars  to register for  a moratorium.                                                               
He also felt  that licensing vessels is important,  because a lot                                                               
of the  fisheries are year-round  where vessels are  operated for                                                               
months  on end  and  it's very  common for  those  boats to  have                                                               
multiple skippers.                                                                                                              
                                                                                                                                
SENATOR  FRED DYSON  asked what  would happen  if a  vessel owner                                                               
loses  a  vessel  or  decides   to  upgrade  under  the  proposed                                                               
legislation.                                                                                                                    
                                                                                                                                
MR. CHILDERS  replied that the  bill has a provision  that allows                                                               
the replacement of  a vessel if it  was lost or taken  out of the                                                               
fishery. Today, if a person wanted  to buy a new vessel, he would                                                               
sell his license  with his old boat  and pick up one  of the many                                                               
LLP licenses  "that are just  laying around"  to go with  the new                                                               
one.                                                                                                                            
SENATOR DYSON  asked if there  is a  way to transfer  the license                                                               
from an old vessel to a new one.                                                                                                
                                                                                                                                
MR. BURCH responded:                                                                                                            
                                                                                                                                
     In the federal  fisheries, you can retire  a vessel and                                                                    
     transfer your license to a  new vessel within a certain                                                                    
     vessel length. You can't take  a 60-footer and transfer                                                                    
     that license to a 200-footer....                                                                                           
                                                                                                                                
     Senator Dyson  brought up a  real good point....  In my                                                                    
     case, my skipper died back  before Christmas [and] page                                                                    
     10, line 10, would  give the commissioner the authority                                                                    
     to  release that  data to  me  as the  vessel owner  in                                                                    
     order  to  get that  permit  so  my new  skipper  could                                                                    
     continue to run the  vessel.... That's something that's                                                                    
     very important; that's something we don't have now.                                                                        
                                                                                                                                
MS. CORA CROME, Director,  Petersburg Vessel Owner's Association,                                                               
asked  the  committee to  amend  SB  347,  section 9,  to  delete                                                               
fisheries 1 through 4 in the  Eastern Gulf. The fisheries are not                                                               
overcapitalized and don't have an  excess number of participants;                                                               
they don't have  derby-style openings and never  reach the quota.                                                               
They are one of an ever-smaller  group of fisheries in this state                                                               
for which one can buy a $50  license. "We would like to see those                                                               
entry-level opportunities preserved."                                                                                           
                                                                                                                                
She said that the North Pacific  Council took the Eastern Gulf of                                                               
Alaska out  of consideration  under this  rationalization program                                                               
early in the process, because  of the reasons she already stated.                                                               
The  association  does not  think  that  displaced fishers  would                                                               
migrate to  Southeast, but  if that happened,  it could  be dealt                                                               
with under the  CFEC moratorium program outlined in  sections 2 -                                                               
8.                                                                                                                              
                                                                                                                                
4:35 p.m.                                                                                                                       
                                                                                                                                
SENATOR  ELTON  said  it's  important  to  note  that  Ms.  Crome                                                               
represents  the group  of  fishermen that  would  be affected  if                                                               
rationalization  out  west  pushed effort  back  into  Southeast.                                                               
Southeast fishermen don't really think that would happen.                                                                       
                                                                                                                                
MS. CROME agreed  and elaborated that for  some reason groundfish                                                               
in the  Eastern Gulf of Alaska  is not aggregated in  the volumes                                                               
as it is in other areas of the Gulf.                                                                                            
                                                                                                                                
     That's the reason  we don't have a  directed fishery of                                                                    
     any sort  of large  economic magnitude. We  don't think                                                                    
     that for  some of  these large-scale operations  in the                                                                    
     Gulf, it's not going to be a viable alternative....                                                                        
                                                                                                                                
     In  addition, there  are  some record-keeping  problems                                                                    
     with those  stocks that we  would have to  believe that                                                                    
     perhaps  the  people  that have  been  harvesting  that                                                                    
     resource  in  the past  might  not  qualify under  this                                                                    
     moratorium.  For example,  people  that participate  in                                                                    
     other fisheries sometimes take small  amounts of cod to                                                                    
     use  as bait  for their  other fisheries.  That doesn't                                                                    
     ever get  landed or recorded and  that harvest wouldn't                                                                    
     be allowed under this moratorium....                                                                                       
                                                                                                                                
MR.  OLIVER  HOLM,  Chairman,  Kodiak   Fish  and  Game  Advisory                                                               
Committee, said he participated  in the last Gulf rationalization                                                               
Board of  Fish committee meeting.  It was  the first time  he had                                                               
seen the  bill and  the Advisory  Committee has  not had  time to                                                               
take any action on the bill one way or the other. His comments                                                                  
are on his own behalf.                                                                                                          
                                                                                                                                
The Advisory Committee does have an opinion about federal                                                                       
management and rationalization.                                                                                                 
                                                                                                                                
     That opinion is not very  high as far as regarding what                                                                    
     the  federal  government  has  done  in  several  other                                                                    
     fisheries  about   protecting  the  interests   of  the                                                                    
     communities,  the  effect   on  actual  fishermen  that                                                                    
     participate in  these fisheries. There's  been economic                                                                    
     consequences   on  the   halibut  fishery   that  we've                                                                    
     observed and  I think  definitely things could  be done                                                                    
     better, but  we're not very confident  that the council                                                                    
     process  is going  to get  us  there. Therefore,  we're                                                                    
     pretty  much  of  the opinion  that  the  state  waters                                                                    
     fishery  should be  managed by  the  state and  managed                                                                    
     separately  and probably  managed differently  than the                                                                    
     federal fisheries.                                                                                                         
                                                                                                                                
     In  going  to  the  meeting and  my  knowledge  of  the                                                                    
     fisheries  in  the Gulf,  the  different  areas of  the                                                                    
     state  covered by  the  Gulf  rationalization plan  are                                                                    
     quite different  in their fleets, where  the percentage                                                                    
     of  the  groundfish  resources that  are  available  in                                                                    
     state  waters, and  the history  of development  of the                                                                    
     number of gear  types that are used  in some instances.                                                                    
     I  guess  having a  blanket  moratorium...  is kind  of                                                                    
     premature. I would  be in favor of giving  the CFEC the                                                                    
     tools to do  the moratorium and then to  go through the                                                                    
     hearing process before the Entry Commission.                                                                               
                                                                                                                                
     The  part  of  the   bill  dealing  with  the  vessels'                                                                    
     licensing  is  problematic  to me.  We've  seen  it  in                                                                    
     federal fisheries  and it may  be appropriate  for some                                                                    
     fisheries  that  have  a  lot  of  absentee  ownership,                                                                    
     corporate ownership, but other  gear types in the state                                                                    
     waters fishery don't  have much of that and  I think it                                                                    
     should  be  considered  up front  that  some  of  those                                                                    
     fisheries should stay as  vessel operator on board-type                                                                    
     of permits  as the  state system  generally has  been -                                                                    
     with  two  recent   exceptions  that  this  Legislature                                                                    
     passed.                                                                                                                    
                                                                                                                                
     There  are consequences  to  absentee vessel  ownership                                                                    
     rather than the permit.  Processors can own vessels....                                                                    
     which  has  an  effect  on  who  gets  to  harvest  the                                                                    
     resource, the concentration of  the resource and number                                                                    
     of  hands   that  get  to   benefit  from  it   in  our                                                                    
     communities and that's the concern.                                                                                        
                                                                                                                                
     Putting  the moratorium  on vessel  size in  the vessel                                                                    
     category  for  all  these fisheries  means  that  these                                                                    
     fisheries,  like groundfish  and  longlining pots  that                                                                    
     are covered  in this bill -  these boats a lot  of them                                                                    
     are smaller boats. A lot of  them fish in a whole bunch                                                                    
     of  different   fisheries  -  halibut,   state  managed                                                                    
     fisheries  and,  with  some  exceptions,  there  aren't                                                                    
     vessel  limits  that they  are  dealing  with. For  the                                                                    
     entire  period  of  this  moratorium,  you're  freezing                                                                    
     these   operators.    If   they   want    to   continue                                                                    
     participating in  the ground  fisheries with  their own                                                                    
     vessels,  they're  not  going  to  be  able  to  switch                                                                    
     vessels.  They'll go  to a  bigger vessel  that may  be                                                                    
     justified in another fishery.                                                                                              
                                                                                                                                
     CFEC has ways of weeding  out multiple permits based on                                                                    
     multiple  landings  off  of  individual  vessels.  That                                                                    
     certainly has occurred in other  fisheries and it could                                                                    
     lead to  too many permits  in the state  fisheries once                                                                    
     the CFEC  gets to the  actual licensing. In  the Kodiak                                                                    
     tanner crab  fishery, what they've done,  they've taken                                                                    
     permits  based  on landings  from  one  vessel and  you                                                                    
     could  apply, but  you  don't get  all  the points  you                                                                    
     would get,  if you're  a small limit  landing off  of a                                                                    
     boat. If there  are multiple landings off  of one boat,                                                                    
     they don't  get all the  points. They have to  split up                                                                    
     the points  or they decide  that one operator  gets the                                                                    
     points.  That way,  when  you come  back  to the  point                                                                    
     system, some  of those  multiple landings  and multiple                                                                    
     permits,  go away.  So, CFEC  does have  a way  to deal                                                                    
     with that.                                                                                                                 
                                                                                                                                
     In   some  of   these   fisheries  we   have  a   large                                                                    
     participation,  a lot  of people  -  not generally  the                                                                    
     trawl  fisheries,   but  the  other  gear   types.  The                                                                    
     consequence to  the working fishermen is  that when you                                                                    
     have vessel ownership,  that the people on  the boat in                                                                    
     rationalization  that are  actually  catching the  fish                                                                    
     are probably going to get  less money, because probably                                                                    
     more of the money goes to  the owner. Less to the hired                                                                    
     skipper  or  the  crew.  That's  been  the  pattern  in                                                                    
     rationalized fisheries. I think,  at least, for some of                                                                    
     these  fisheries that  we still  want to  go that  way,                                                                    
     because of the effects on the community.                                                                                   
                                                                                                                                
     The  jig fishery  exemption  probably  we'd hope  would                                                                    
     stay  in the  bill.  The jig  fishery  generally has  a                                                                    
     fairly  low catch  rate that's  quite dependent  on the                                                                    
     availability  of cod,  their schooling.  Some times  of                                                                    
     the  year the  cod  just aren't  available; they  don't                                                                    
     bite. It's generally a slower  fishery. A lot of people                                                                    
     who participate  in the jig  fishery are also  going to                                                                    
     participate in the  pot fishery in state  waters or the                                                                    
     long ling  fishery and would  be getting  permits under                                                                    
     this moratorium in those  gear-types anyway.... I think                                                                    
     you really  need to consider  that you need to  have an                                                                    
     open fishery  where people  can get  started and  go in                                                                    
     and out  of it at will  and I think the  jig fishery is                                                                    
     the best fishery that's used for that.                                                                                     
                                                                                                                                
MS.   CATHY   HANSON,   Executive  Director,   Southeast   Alaska                                                               
Fishermen's  Alliance,  opposed  including the  Eastern  Gulf  of                                                               
Alaska in this legislation, because  effort probably would not be                                                               
redirected down into the Southeastern  area. She was also assured                                                               
by  the  North  Pacific  Fisheries   Management  Council  at  the                                                               
beginning  of the  program that  the  Eastern Gulf  would not  be                                                               
covered in this program. "To see  this pop up in this legislation                                                               
was somewhat of a shock and a surprise and it's not necessary."                                                                 
                                                                                                                                
MR. BRUCE  SCHACTLER said  he lived  in Kodiak  for 32  years and                                                               
represented  himself  and others  like  him.  He is  involved  in                                                               
fisheries other than the ground fishery.                                                                                        
                                                                                                                                
     Many of my peers drive  boats for people like Mr. Burch                                                                    
     and a  tremendous amount of  the people that  own these                                                                    
     vessels.  They're gone  from this  fishery  if you  put                                                                    
     this  on to  the  vessel. In  the  halibut [and]  sable                                                                    
     fisheries  right now  the majority  of  the people  are                                                                    
     paying for  their IFQs that  they purchased.  By taking                                                                    
     it right  off the  top of their  crew, the  captains of                                                                    
     the vessels  are paying  for those.  If you  don't like                                                                    
     it, just  go find another  boat to work on.  The people                                                                    
     who have  developed the fishery, the  people that drive                                                                    
     this fishery, are  the captains and the  crews, not the                                                                    
     vessels.                                                                                                                   
                                                                                                                                
     As Oliver  said and  we found  out during  the American                                                                    
     Fisheries  Act and  further, it's  real easy  to buy  a                                                                    
     vessel. A  cannery can go  buy 15 vessels if  they want                                                                    
     and  pretty soon  the  vessels are  owned  by the  very                                                                    
     people that we talk about  not wanting to have anything                                                                    
     to do with  - this heavy consolidation  of vessels into                                                                    
     corporate hands.                                                                                                           
                                                                                                                                
     The  jig fishery,  briefly, is  the slowest  fishery on                                                                    
     earth. There's a  lot of little boats in  Kodiak. I see                                                                    
     them go by  my house every morning and  come back every                                                                    
     evening  -  a couple  thousand  pounds  here, a  couple                                                                    
     thousand  pounds  there.  The  guys  are  paying  rent.                                                                    
     That's  what  this is  all  about.  There ain't  nobody                                                                    
     getting rich off the jig fishery.                                                                                          
                                                                                                                                
     The State  of Alaska went  out and created  this bottom                                                                    
     fishery in  state waters for  its residents,  for these                                                                    
     small boat guys to get out  there and pay some rent for                                                                    
     some  little  economic   development.  To  think  about                                                                    
     excluding  something  like  that,  I  think  is  a  big                                                                    
     mistake. That is  the point of the state  fishery - was                                                                    
     for the state  to come in and manage  its own fisheries                                                                    
     not be driven  by what the feds have screwed  up for so                                                                    
     many years....  I would suggest how  about anybody with                                                                    
     the  federal fishery  can just  stay in  federal waters                                                                    
     and they can't  even fish in the state  waters. Now, we                                                                    
     have no parallel fishery. We  just have a state fishery                                                                    
     for  state residents  or for  state people  that aren't                                                                    
     fishing that never got an  LLP. There's many ways to go                                                                    
     about doing this,  but just to cop to the  deal that we                                                                    
     have  a  Gulf  rationalization   program  going  on  to                                                                    
     rationalize the screwed-up federal  fishery and we have                                                                    
     to deal  with it on their  terms is, I think,  a little                                                                    
     rash. I just don't want  the state, through statute, on                                                                    
     a very short  time-line, to get ahead of  itself and do                                                                    
     something it may regret doing to its residents....                                                                         
                                                                                                                                
     What  happens  during  that  timeout?  What  about  the                                                                    
     people that  have just barely entered  the fishery? How                                                                    
     about people that  are just barely able  to start their                                                                    
     fishing,  they  just got  out  of  school or  whatever?                                                                    
     People who  have just finally  been able to buy  a boat                                                                    
     big  enough?... What  has happened  to this  discussion                                                                    
     during  this  moratorium?  The odds  are  that  guy  is                                                                    
     already cut  out and he's  never going to get  back in.                                                                    
     So, this really  isn't a time out; this  is the camel's                                                                    
     nose  under  the  tent.  You  start  a  moratorium  and                                                                    
     anybody  that hasn't  been in  the  fishery unless  you                                                                    
     people  are going  to  take care  of  it in  statute...                                                                    
      they're done.... I urge you to take this as slow as                                                                       
     you can.                                                                                                                   
                                                                                                                                
SENATOR DYSON  said he assumed that  most of the small  boat guys                                                               
are Alaskans  and asked Mr. Schactler  if he thought most  of the                                                               
big boat owners are from the Lower 48.                                                                                          
                                                                                                                                
MR. SCHACTLER replied that he didn't  know that to be true. A big                                                               
contingency of boat  owners live in Kodiak. "But,  there are more                                                               
and  more absentee  skippers. Those  guys who  started those  big                                                               
rigs are now old...."                                                                                                           
                                                                                                                                
SENATOR DYSON asked  if he thought more of the  big boat skippers                                                               
were from down South.                                                                                                           
                                                                                                                                
MR. SCHACTLER replied not really.                                                                                               
                                                                                                                                
SENATOR  DYSON  said  the   committee  shouldn't  be  considering                                                               
licensing a boat as opposed to  the skipper on the basis of which                                                               
one would encourage the most Alaskan participation.                                                                             
                                                                                                                                
MR. SCHACTLER replied:                                                                                                          
                                                                                                                                
     I think  it should  be based on  participation, period,                                                                    
     and the participation  by the people who  are out there                                                                    
     risking their  lives catching the fish,  not the person                                                                    
     that may be in Palm Springs that owns the boat.                                                                            
                                                                                                                                
VICE CHAIR WAGONER  thanked him and asked  for further questions.                                                               
There were none and he said the bill would be held until Friday.                                                                

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