04/07/2017 03:30 PM Senate RESOURCES

         SB  89-SHELLFISH ENHANCE. PROJECTS; HATCHERIES                                                                     
                                                                                                                                
3:39:41 PM                                                                                                                    
CHAIR GIESSEL announced  consideration of SB 89, noting  it was a                                                               
bill that  had significant work  last year. Public  testimony was                                                               
opened  and  closed on  April  5.  She  asked the  committee  for                                                               
discussion or questions.                                                                                                        
                                                                                                                                
SENATOR  WIELECHOWSKI asked  the  Alaska Department  of Fish  and                                                               
Game (ADF&G) how  cost recovery would work for salmon  and how it                                                               
would work for shellfish, because the two are so different.                                                                     
                                                                                                                                
FORREST   BOWERS,  Deputy   Director,   Division  of   Commercial                                                               
Fisheries, Alaska  Department of  Fish and Game  (ADF&G), Juneau,                                                               
Alaska, referring  to SB 89,  explained that the  department uses                                                               
two  approaches for  salmon cost  recovery. The  first is  a cost                                                               
recovery  fishery whereby  the hatchery  operator contracts  with                                                               
one  or  more   harvest  vessels  to  harvest   excess  fish  for                                                               
broodstock  needs,  and  those  are  sold  to  pay  for  hatchery                                                               
operating costs.                                                                                                                
                                                                                                                                
The second approach happens in the  case of a remote release site                                                               
where salmon  fry are reared away  from a hatchery and  return to                                                               
this  remote  release  site. A  common  property  fishery  occurs                                                               
there, and  anyone who  harvests salmon  in that  designated area                                                               
pays  an assessment  fee  to fund  those  operations. Under  both                                                               
approaches, those  monies are  collected by  the State  of Alaska                                                               
and redistributed back to the hatchery operators.                                                                               
                                                                                                                                
MR. BOWERS  said that  because hatchery-produced  shellfish don't                                                               
come  home to  a  natal  area to  reproduce  they  will mix  with                                                               
natural stock,  therefore, it's most  likely that  the assessment                                                               
fee approach would be used for cost recovery.                                                                                   
                                                                                                                                
3:43:15 PM                                                                                                                    
SENATOR WIELECHOWSKI  asked how  far shellfish  typically migrate                                                               
and  how  special and  terminal  harvest  areas are  defined  for                                                               
shellfish.                                                                                                                      
                                                                                                                                
3:43:39 PM                                                                                                                    
SENATOR VON IMHOF joined the committee.                                                                                         
                                                                                                                                
MR.  BOWERS replied  that some  shellfish don't  migrate at  all,                                                               
like clams and scallops. Crabs  walk around, but require specific                                                               
habitat  to be  successful.  So, their  fishery management  areas                                                               
have  been designed  around  stock boundaries  that  are a  known                                                               
range  of distinct  stocks. In  the  case of  Pribilof blue  king                                                               
crab, a species of interest in  this bill, the Board of Fisheries                                                               
has defined  a registration  area and that  would most  likely be                                                               
the assessment area.                                                                                                            
                                                                                                                                
SENATOR WIELECHOWSKI asked if he  expected some of the wild stock                                                               
would get  caught and  if the  money would be  given back  to the                                                               
hatchery  when they  are caught.  Is there  some sort  of genetic                                                               
testing?                                                                                                                        
                                                                                                                                
3:45:23 PM                                                                                                                    
MR.  BOWERS said  that is  a good  question. In  some cases,  the                                                               
hatchery-produced  shellfish  would   be  mixed  with  naturally-                                                               
produced animals.  There is  no way  to mark  them, and  the cost                                                               
recovery fee would accrue from all the catch in the area.                                                                       
                                                                                                                                
SENATOR MEYER  said it seemed like  some money could be  saved if                                                               
notice  of  hearing  was  just  done  on-line  instead  of  in  a                                                               
newspaper, language on page 3, line 3.                                                                                          
                                                                                                                                
MR.  BOWERS  responded  that is  standard  Alaska  Administrative                                                               
Procedures Act language.                                                                                                        
                                                                                                                                
3:47:33 PM                                                                                                                    
SENATOR MEYER asked if "reasonable period"  on page 4, line 9, is                                                               
defined.                                                                                                                        
                                                                                                                                
MR. BOWERS replied not in this  bill. It would likely be laid out                                                               
in the implementing regulations.                                                                                                
                                                                                                                                
SENATOR WIELECHOWSKI asked if this would impact harvest quotas.                                                                 
                                                                                                                                
MR. BOWERS  answered that it  could increase them  if successful,                                                               
and that is the intent.                                                                                                         
                                                                                                                                
SENATOR WIELECHOWSKI asked if there  is any scientific opposition                                                               
to this bill within ADF&G.                                                                                                      
                                                                                                                                
MR. BOWERS answered that he  hasn't seen any opposition expressed                                                               
by staff or the leadership team.                                                                                                
                                                                                                                                
3:49:17 PM                                                                                                                    
SENATOR WIELECHOWSKI said a concern  was raised about the ability                                                               
to stop permits that were already issued.                                                                                       
                                                                                                                                
MR. BOWERS  replied that  language was  in section  3 on  page 4,                                                               
line 8, a provision about  alterations, suspension, or revocation                                                               
of a permit.                                                                                                                    
                                                                                                                                
CHAIR GIESSEL thanked him for his expert answers.                                                                               
                                                                                                                                
3:50:33 PM                                                                                                                    
TIM LAMKIN,  staff to Senator Stevens,  Alaska State Legislature,                                                               
Juneau, Alaska, expressed the sponsor's  gratitude for hearing SB
 that will improve and diversify Alaska's fisheries portfolio.                                                                
                                                                                                                                
3:51:04 PM                                                                                                                    
SENATOR MEYER  said this may  seem minor, but "in  the discretion                                                               
of  the commissioner"  on  page 4,  line 11,  should  be "at  the                                                               
discretion of the commissioner."                                                                                                
                                                                                                                                
CHAIR GIESSEL  said that Senate  Finance Committee could  take it                                                               
up, because  that is where  the bill goes next.  Also, publishing                                                               
in the newspaper  is template language that is  currently part of                                                               
state law. Changing  it was attempted about three  years ago, but                                                               
it didn't pass.                                                                                                                 
                                                                                                                                
SENATOR COGHILL moved to report  SB 89, version 30-LS0691\A, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s). There were no objections and it was so ordered.