Legislature(1997 - 1998)

03/18/1998 05:06 PM House FSH

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
        HOUSE SPECIAL COMMITTEE ON FISHERIES                                   
                   March 18, 1998                                              
                     5:06 p.m.                                                 
                                                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Representative Alan Austerman, Chairman                                        
Representative Ivan Ivan                                                       
Representative Scott Ogan                                                      
Representative Mark Hodgins                                                    
Representative Gene Kubina                                                     
                                                                               
MEMBERS ABSENT                                                                 
All members present                                                            
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
CS FOR SENATE JOINT RESOLUTION NO. 33(RES)                                     
Supporting reduction of fishing capacity in the Bering Sea fishing             
fleet and Americanization of the fishing fleet through passage of              
S. 1221, the "American Fisheries Act," by the United States                    
Congress.                                                                      
                                                                               
     - MOVED CSSJR 33(RES) OUT OF COMMITTEE                                    
                                                                               
HOUSE JOINT RESOLUTION NO. 55                                                  
Relating to the allocation of pollock and Pacific cod.                         
                                                                               
     - MOVED HJR 55 OUT OF COMMITTEE                                           
                                                                               
HOUSE BILL NO. 318                                                             
"An Act relating to waste of salmon."                                          
                                                                               
     - MOVED CSHB 318(FSH) OUT OF COMMITTEE                                    
                                                                               
HOUSE BILL NO. 423                                                             
"An Act relating to the Alaska access fishery trust, purchase of               
commercial fisheries permits, vessels, gear, equipment, and leases             
by the Department of Fish and Game, sport fishing license                      
surcharge, and the entry permit surcharge; and providing for an                
effective date."                                                               
                                                                               
     - HEARD AND HELD                                                          
                                                                               
(* First public hearing)                                                       
                                                                               
PREVIOUS ACTION                                                                
                                                                               
BILL: SJR 33                                                                   
SHORT TITLE: SUPPORT AMERICAN FISHERIES ACT                                    
SPONSOR(S): SENATOR(S) MACKIE, Taylor                                          
                                                                               
Jrn-Date    Jrn-Page           Action                                          
01/16/98      2211     (S)  READ THE FIRST TIME - REFERRAL(S)                  

01/16/98 2211 (S) RESOURCES

01/28/98 (S) RES AT 3:30 PM BUTROVICH ROOM 205

01/28/98 (S) MINUTE(RES) 03/02/98 (S) RES AT 3:30 PM BUTROVICH ROOM 205 03/02/98 (S) MINUTE(RES) 03/03/98 (S) RLS AT 11:35 AM FAHRENKAMP RM 203 03/03/98 (S) MINUTE(RLS) 03/03/98 2716 (S) RES RPT CS 3DP 2NR NEW TITLE 03/03/98 2716 (S) DP: HALFORD, TAYLOR, LEMAN 03/03/98 2716 (S) NR: SHARP, GREEN 03/03/98 2716 (S) ZERO FISCAL NOTE TO SJR & CS (S.RES) 03/05/98 2750 (S) RULES TO CALENDAR 3/5/98 03/05/98 2755 (S) READ THE SECOND TIME 03/05/98 2755 (S) RES CS ADOPTED UNAN CONSENT 03/05/98 2755 (S) ADVANCED TO THIRD READING UNAN CONSENT 03/05/98 2755 (S) READ THE THIRD TIME CSSJR 33(RES) 03/05/98 2755 (S) PASSED Y19 N1 03/05/98 2755 (S) HOFFMAN NOTICE OF RECONSIDERATION 03/06/98 2773 (S) RECON TAKEN UP - IN THIRD READING 03/06/98 2773 (S) PASSED ON RECONSIDERATION Y15 N- E4 A1 03/06/98 2775 (S) TRANSMITTED TO (H) 03/09/98 2560 (H) READ THE FIRST TIME - REFERRAL(S) 03/09/98 2560 (H) FISHERIES 03/18/98 (H) FSH AT 5:00 PM CAPITOL 124 BILL: HJR 55 SHORT TITLE: ALLOCATION OF POLLOCK AND PACIFIC COD SPONSOR(S): REPRESENTATIVES(S) AUSTERMAN, Moses, Elton Jrn-Date Jrn-Page Action

01/30/98 2180 (H) READ THE FIRST TIME - REFERRAL(S)

01/30/98 2181 (H) FISHERIES 02/11/98 2293 (H) COSPONSOR(S): ELTON 02/16/98 (H) FSH AT 5:00 PM CAPITOL 124 02/16/98 (H) MINUTE(FSH) 03/11/98 (H) FSH AT 5:00 PM CAPITOL 124 03/11/98 (H) MINUTE(FSH) 03/18/98 (H) FSH AT 5:00 PM CAPITOL 124 BILL: HB 318 SHORT TITLE: WANTON WASTE OF SALMON SPONSOR(S): REPRESENTATIVES(S) IVAN Jrn-Date Jrn-Page Action

01/13/98 2033 (H) READ THE FIRST TIME - REFERRAL(S)

01/13/98 2033 (H) FISHERIES, RESOURCES 02/11/98 (H) FSH AT 5:00 PM CAPITOL 124 02/11/98 (H) MINUTE(FSH) 03/09/98 (H) FSH AT 5:00 PM CAPITOL 124 03/09/98 (H) MINUTE(FSH) 03/11/98 (H) FSH AT 5:00 PM CAPITOL 124 03/11/98 (H) MINUTE(FSH) 03/18/98 (H) FSH AT 5:00 PM CAPITOL 124 BILL: HB 423 SHORT TITLE: ACCESS FISHERY TRUST/LIC. PERMIT SURCHARGE SPONSOR(S): REPRESENTATIVES(S) MULDER Jrn-Date Jrn-Page Action 02/16/98 2333 (H) READ THE FIRST TIME - REFERRAL(S) 02/16/98 2334 (H) FSH, RESOURCES 03/09/98 (H) FSH AT 5:00 PM CAPITOL 124 03/09/98 (H) MINUTE(FSH) 03/11/98 (H) FSH AT 5:00 PM CAPITOL 124 03/11/98 (H) MINUTE(FSH) 03/18/98 (H) FSH AT 5:00 PM CAPITOL 124 WITNESS REGISTER SENATOR JERRY MACKIE Alaska State Legislature Capitol Building, Room 427 Juneau, Alaska 99801 Telephone: (907) 465-4925 POSITION STATEMENT: Presented sponsor statement on SJR 33. TOM WRIGHT, Legislative Assistant to Representative Ivan Alaska State Legislature Capitol Building, Room 418 Juneau, Alaska 99801 Telephone: (907) 465-3882 POSITION STATEMENT: Provided testimony on HB 318. DR. JOHN WHITE, Chairman Board of Fisheries P.O. Box 757 Bethel, Alaska 99559 Telephone: (907) 543-3778 POSITION STATEMENT: Answer questions regarding Board of Fisheries meeting move. LARRY ENGLE, previous Chairman Board of Fisheries Old Glenn Highway Palmer, Alaska 99645 Telephone: (907) 745-4132 POSITION STATEMENT: Answer questions regarding Board of Fisheries meeting move. BRUCE TWOMLEY, Chairman/Commissioner Commercial Fisheries Entry Commission Department of Fish and Game 8800 Glacier Highway, Suite 109 Juneau, Alaska 99801 Telephone: (907) 789-6160 POSITION STATEMENT: Testified on HB 423. REPRESENTATIVE ELDON MULDER Alaska State Legislature Capitol Building, Room 501 Juneau, Alaska 99801 Telephone: (907) 465-2647 POSITION STATEMENT: Testified on HB 423. KEVIN DELANEY, Director Division of Sport Fish Department of Fish and Game 333 Raspberry Road Anchorage, Alaska 99518 Telephone: (907) 267-2224 POSITION STATEMENT: Testified on HB 423. JERRY McCUNE, United Fishermen of Alaska 211 4th Street, Suite 112 Juneau, Alaska 99801 Telephone: (907) 586-2820 POSITION STATEMENT: Testified on HB 423. BRENT JOHNSON, President Kenai Peninsula Fishermen's Association P.O. Box 508 Clam Gulch, Alaska 99586 Telephone: (907) 262-2492 POSITION STATEMENT: Testified against HB 423. DALE BONDURANT HC 1 Box 1197 Soldotna, Alaska 99669 Telephone: (907) 262-0818 POSITION STATEMENT: Testified against HB 423. GRACE KENDALL P.O. Box 2523 Soldotna, Alaska 99669 Telephone: (907) 262-6130 POSITION STATEMENT: Testified against HB 423. DONNA SCHOWEILER, Commercial Fisherman HC 1 Box 162-A Soldotna, Alaska 99669 Telephone: (907) 262-8462 POSITION STATEMENT: Testified against HB 423. ACTION NARRATIVE TAPE 98-11, SIDE A Number 0001 CHAIRMAN ALAN AUSTERMAN called the House Special Committee on Fisheries meeting to order at 5:06 p.m. Members present at the call to order were Representatives Austerman, Ivan, Ogan and Hodgins. Representative Kubina arrived at 5:05 p.m. CSSJR 33(RES) - SUPPORT AMERICAN FISHERIES ACT Number 0010 CHAIRMAN AUSTERMAN announced the first order of business to be CSSJR 33(RES), Supporting reduction of fishing capacity in the Bering Sea fishing fleet and Americanization of the fishing fleet through passage of S. 1221, the "American Fisheries Act," by the United States Congress. He asked Senator Mackie to present the bill. Number 0033 SENATOR JERRY MACKIE stated that committee has already moved the House companion resolution, so he would just highlight the changes present in the Senate version. He stated that there were several changes in CSSJR 33(RES), the first is in the title, as it adds support for Bering Sea fishing fleet reduction and for Americanization of the fleet. He read the following into the record: "The second is in the first three whereas clauses of CSSJR 33(RES), are new which express the following: (a) That there is an overcapitalization of fishing harvest capacity in the Bering Sea and that this typically can result in excessive exploitation, and (b) the state values sustainable fishery management principles which minimize damage to the fishery resources and habitat while maximizing the economic benefits of these resources for Alaska communities and U.S. citizens. Change number 3. The first two whereas clauses on page 2 of the Senate version compare to the two clauses on page 1, line 12 to page 2, line 3 of HJR 48. In the senate version, the references to tonnage, length and horsepower limits are not specified so that was taken out in this version. The fourth change, the senate clause beginning on page 2, line 6 is the same as the House clause beginning on page 1, line 6. The Senate version eliminates the House clause following page 1, lines 9-11 as redundant. Number 5. The two Senate clauses on page 2, lines 9 to 14 compare to the House clauses on page 2, lines 4 to 9 where, again, specific references to tonnage, length, horsepower, and numbers of vessels are eliminated. Number 6. The final whereas clause of the Senate version consolidates the last three whereas clauses in the House version into a simple statement promoting Americanization of fisheries. And lastly, the Senate resolved clause beginning on page 2, line 17 more specifically states that the legislature's support is for the provisions of S.1221 that reduce fishing capacity in the Bering Sea and promote Americanization of the fleet. The House resolved clause on page 2, line 19 simply supports the legislation." He stated that those who had concerns with the original bill should feel more comfortable with this version. Number 0088 REPRESENTATIVE IVAN IVAN referred to the six Community Development Quota (CDQ) groups in Western Alaska from Nome to the Aleutian and the Pribilof Islands. He asked if this in any way would harm the CDQ group's efforts to partner with processors in the Bering Sea. Number 0095 SENATOR MACKIE responded that there was only one CDQ group that was brought to his attention that this would have an affect on and it is one that has a partnership with American Seafoods but as far as the Norton Sound Economic Development CDQ group they own 49 percent of the partnership and it does not affect them at all. Number 0115 REPRESENTATIVE MARK HODGINS made a motion to move CSSJR 33(RES) with individual recommendations and attached fiscal note. Number 0120 REPRESENTATIVE SCOTT OGAN objected to the motion. Number 0127 CHAIRMAN AUSTERMAN asked for a roll call vote. Representatives Hodgins, Kubina, Ivan and Austerman voted in favor of CSSJR 33(RES). Representative Ogan voted against CSSJR 33(RES). Chairman Austerman announced CSSJR 33(RES) moved out of the House Special Committee on Fisheries. HJR 55 - ALLOCATION OF POLLOCK AND PACIFIC COD Number 0131 CHAIRMAN AUSTERMAN announced the next order of business to be HJR 55, relating to the allocation of pollock and Pacific cod. Number 0138 REPRESENTATIVE HODGINS made a motion to move HJR 55 out of committee with individual recommendations and attached fiscal note. Number 0140 REPRESENTATIVE IVAN objected. Number 0153 REPRESENTATIVE GENE KUBINA stated that he wanted to say something for the record. He stated that it first seemed like a cut and dry answer, that we would want to do everything possible to support the onshore based processors because one would think that they are hiring more Alaskans and paying more taxes. However, he stated that the offshore sector is providing more of a benefit to Alaska then they have, as they are now hiring more Alaskans and helping to diversify the salmon industry. He explained that he is going to vote to move the bill out because he believes there has been politics played. He stated that he has always said that the legislature should not be involved in allocation issues, but he believed that it was politics that turned over a decision by the North Pacific Fisheries Management Council (NPFMC) not once but twice, on the allocation issue. He stated that by supporting HJR 55, he is being consistent regarding his view on allocation issues, as it is not right for Washington D.C. to change decisions by the council either. He added that the onshore sector needs to think about the issue, he is not sure how much of that is American owned. He suggested the onshore sector looked into their abilities to diversify as well. Number 0195 REPRESENTATIVE IVAN stated that his objection to moving HJR 55 is because it is an allocation debate that belongs to the NPFMC. Also because the offshore sector is partnered with the Community Development Quota (CDQ) groups and has provided more jobs and higher wages for the communities. He stated that his objection is inorder to support the CDQ groups that he represents. Number 0211 REPRESENTATIVE OGAN stated that he agreed that it was not a cut and dry issue. He said "there is going to be some Alaskans that win and some that lose in this and if there is going to be some Alaskans that lose, let the feds to it to us like they do it to us on everything else, instead of doing it to ourselves." Number 0224 CHAIRMAN AUSTERMAN stated that it is a cut and dry situation in his mind, he would like to get 100 percent of the processing done onshore, to build the tax base and economic base of the state of Alaska. Number 0242 REPRESENTATIVE OGAN stated that he did not think this would have a tremendous effect on what is going to happen but he would hope that if more fish are allocated onshore they will give deference to constituents of Representative Ivan. Number 0258 CHAIRMAN AUSTERMAN stated that wanted to make another comment. He disagreed that the decision should be made by the NPFMC. He stated that the allocation issues that have gone before the government appointed Board of Fisheries and Board of Game should stay out of the Legislature but the NPFMC's interests are separate from what the state of Alaska's issues are and, at times, interests are. Individual Fish Quotas (IFQ) are an example of why the state of Alaska should have been a lot more involved in that issue as that resource was given away. He stated that is important for the legislature to be involved in what happens with the NPFMC. Number 0278 CHAIRMAN AUSTERMAN called for a roll call vote. Representative Hodgins, Kubina and Austerman voted in favor of HJR 55. Representative Ogan and Ivan voted against HJR 55. HJR 55 moved out of the House Special Committee on Fisheries. HB 318 - WANTON WASTE OF SALMON CHAIRMAN AUSTERMAN announced that the next order of business would be HB 318, "An Act relating to waste of salmon." He stated that the committee heard the bill once before and he believed that some amendments to the bill would be discussed. TOM WRIGHT, Legislative Assistant to Representative Ivan, stated that there are two amendments to HB 318. Number 0316 REPRESENTATIVE IVAN moved to adopt Amendment 1 for discussion purposes. Amendment 1, 0-LS130\A.3, reads as follows: Page 1, line 14, following "fish,": Insert "bait," Page 2, following line 1: Insert a new bill section to read: Sec.2 AS 16.10.450 is amended by adding new subsections to read: (c) Except as provided by (d) and (e) of this section, a hatchery operator is subject to AS 16.05.831. (d) Notwithstanding AS 16.05.831, a hatchery operator who takes eggs or sperm for use in a hatchery or a related salmon culture facility from adult salmon returning to the locations designated by the department under AS 16.10.420 shall provide for the utilization of the flesh of the salmon from which eggs or sperm are taken unless the hatchery operator determines that the flesh is not fit for human consumption and that it is not economical to provide for utilization of the flesh. (e) Notwithstanding AS 16.05.831, if the commissioner issues a permit authorizing the stripping and commercial sale of eggs from adult salmon taken at locations designated by the department under AS 16.10.420, a hatchery operator may strip eggs from the salmon for commercial sale and dispose of the flesh of the salmon in accordance with procedures prescribed by the commissioner in the permit. The commissioner may issue a permit authorizing the stripping of eggs from salmon and disposal of the salmon carcasses by a hatchery operator if the commissioner determines that sufficient salmon eggs will be recovered to continue operation of the hatchery and related salmon culture facilities and to provide salmon eggs to other hatcheries, that the flesh of the salmon carcasses is not fit for human consumption, and that it is not economically feasible to use the flesh of the salmon in a manner consistent with AS 16.05.831. The fee for a permit issued under this subsection is equal to 50 percent of the net proceeds earned from the sale of the salmon eggs to a seafood processor or other purchaser. The commissioner shall adopt regulations as necessary to implement this subsection and shall seek to promote the maximum practical use of the flesh of salmon harvested by hatchery operators. Permit fees collected under this subsection and shall be deposited into the general fund. The legislature may appropriate money collected under this subsection to the Department of Fish and Game, division of commercial fisheries management and development." Number 0319 MR. WRIGHT explained that there was some discussion about whether hatcheries would fit under the wanton waste laws and instead of revising the wanton waste laws, the drafter felt that it was more appropriate to put the wanton waste prohibition under the hatchery statutes, rather than the wanton waste statutes. It does exclude hatcheries from wanton waste when they take milt and eggs for broodstock and those carcasses are not fit for human consumption can be disposed of in the most economical way possible. He stated that Section (E) states that if there is broodstock that returns to the hatchery in excess of cost recovery for milt and egg take, the broodstock may be roe stripped but with the proviso that 50 percent of the net proceeds will go to the department and the other 50 percent will go back to the hatchery. He stated that this was to discourage managing for an excessive broodstock. He stated this would cover the cost incurred for the disposal of carcasses that are unfit for human consumption. Number 0344 REPRESENTATIVE HODGINS stated that he would like to offer an amendment to the Amendment 1. He stated that it would delete on page 2, lines 1-7, "The fee for a permit issued under this subsection is equal to 50 percent of the net proceeds earned from the sale of the salmon eggs to a seafood processor or other purchaser." Number 0355 CHAIRMAN AUSTERMAN asked that in other words Representative Hodgins would like to gut the essence of the proposed amendment. REPRESENTATIVE HODGINS replied yes. CHAIRMAN AUSTERMAN asked if there was an objection on the amendment to Amendment 1. REPRESENTATIVE IVAN objected. Number 0357 REPRESENTATIVE HODGINS stated that he did not think there should be a fee involved with the bill and that there is an economic damage in having the fee more so than the punitive advantage for having fee in there. MR. WRIGHT stated that if it was going to be done correctly on page 2, lines 4-7 would have to be deleted as well. REPRESENTATIVE HODGINS stated that he would then include in the amendment to Amendment 1, the deletion of the language, "Permit fees collected under this subsection shall be deposited into the general fund. The legislature may appropriate money collected under this subsection to the Department of Fish and Game, division of commercial fisheries management and development." Number 0368 CHAIRMAN AUSTERMAN stated that he would accept that as part of the amendment to Amendment 1. He stated that the reason that language is included in the proposed amendment is to try and discourage hatcheries from overestimating the amount of broodstock that they will take. He asked Representative Hodgins if he thought hatcheries should be able to take more broodstock than necessary. Number 0376 REPRESENTATIVE HODGINS stated that he had a problem with the fee structure. Number 0376 CHAIRMAN AUSTERMAN asked if Representative Hodgins if he thought there was any way that they should be controlling the excess brood stock. Number 0378 MR. WRIGHT stated that it one of the safeguards to keep from managing for excessive broodstock. He stated that there are requirements for the hatcheries in the disposal of the fish that are not used for broodstock. He stated that this is a mechanism to get rid of the excessive broodstock and not incur any more cost but yet not allow for carte blanche roe stripping. Number 0393 CHAIRMAN AUSTERMAN asked for a roll call vote on the amendment to Amendment 1. Representative Hodgins voted in favor of the amendment to Amendment 1. Representatives Ivan, Ogan and Austerman voted against it. Representative Kubina was absent. The amendment to Amendment 1 failed. Number 0402 CHAIRMAN AUSTERMAN stated that the original Amendment 1 was back before the committee. He asked if there was an objection. REPRESENTATIVE HODGINS objected. Number 0407 CHAIRMAN AUSTERMAN called for a roll call vote. Representative Hodgins voted against Amendment 1. Representatives Ivan, Ogan and Austerman voted in favor of it. Representative Kubina was absent. Amendment 1 was adopted. REPRESENTATIVE IVAN made a motion to adopt Amendment 2 which reads: Page 1, Line 3: Insert a new bill section to read: "Section 1. INTENT. It is the intent of this legislation that the stripping of salmon roe for cost recovery purposes by hatcheries is prohibited. The only exception is the selling of roe form broodstock, commonly referred to as excessive broodstock, which has returned in numbers larger than anticipated by the hatchery and the Department of Fish and Game and is not fit for human consumption. The roe of that excessive broodstock may be stripped and sold after the hatchery has obtained a permit from the department for that exclusive purpose." Renumber the following sections accordingly. Number 0424 MR. WRIGHT stated that this is to just clarify what the intent of the legislation is, that the stripping of salmon roe for cost recovery is prohibited with the exception of broodstock. He stated that the drafter could not find a way to use the term excessive broodstock. The proposed Amendment 2 is to clarify that there is a difference between the cost recovery, broodstock and excessive broodstock. The point is that the excessive broodstock is what the bill talks to. Number 0433 CHAIRMAN AUSTERMAN stated that if there is no further discussion he would call for a roll call vote. Representative Hodgins voted against Amendment 2. Representatives Ivan and Austerman voted in favor of Amendment 2. Representatives Kubina and Ogan were absent. He stated that Amendment 2 failed. Number 0438 REPRESENTATIVE HODGINS made a motion to reconsider Amendment 2. Number 0439 CHAIRMAN AUSTERMAN called for a brief at ease. Number 0439 CHAIRMAN AUSTERMAN called the meeting back to order. He stated that there is a reconsideration on Amendment 2 by Representative Hodgins. A roll call vote was taken Representative Hodgins voted against Amendment 2. Representatives Ivan, Ogan and Austerman voted in favor of Amendment 2. Amendment 2 was adopted. Number 0448 CHAIRMAN AUSTERMAN stated that he would table CSHB 318(FSH) as Representative Hodgins has requested to talk to John White, Chairman of the Board of Fisheries and he is now on teleconference. REPRESENTATIVE HODGINS thanked Dr. White for being available via teleconference. He stated that he is quite concerned about the newspaper headlines regarding the Board of Fisheries changing the meeting plans. The future February meeting was moved out of Soldotna because of safety concerns. He asked him what his safety concerns are because if there is a problem it would need to be addressed. Number 0465 DR. JOHN WHITE, Chairman, Board of Fisheries, testified via teleconference from Bethel that the question is two-fold, there is the issue of neutral ground, historically the meetings have been held in Anchorage, involving Cook Inlet issues. He stated that those meetings are the most volatile. He stated that there were tensions at the previous meetings and the Board of Fisheries needs to have public safety present at the meetings. He asserted that board members have been concerned regarding the safety of public members and board members at the meetings. He stated that the safety issue is second to the neutral ground issue. He stated that the board wishes to consider alternative sites that would give neutral ground in allocation disputes. Number 0494 REPRESENTATIVE OGAN stated that he did not understand what he just said and asked him to explain his answer. Number 0493 DR. WHITE reiterated the two reasons, neutral ground and public safety. He stated that there are a lot of physical posturing at the meetings and board members have had to be escorted to their cars. Number 0508 REPRESENTATIVE HODGINS asked where those meetings took place. Number 0509 DR. WHITE replied that it was in Anchorage. REPRESENTATIVE HODGINS stated that it would seem that Anchorage would then be the place to not hold the meetings. Number 0511 DR. WHITE responded that Anchorage has been the place of neutral ground between all parties in the past. REPRESENTATIVE HODGINS asked if this meeting has been scheduled. Number 0517 DR. WHITE stated that it was scheduled in October and the meeting on salmon issues was going to be held in Soldotna and Wasilla meeting was going to be the native species issues. REPRESENTATIVE HODGINS asked that since then they have decided that it was not neutral ground. Number 0521 DR. WHITE stated that the issue would be taken back to the rest of the board for the discussion of the availability of other space. REPRESENTATIVE HODGINS asked if he was trying to dissuade other board members to not meet in Soldotna. DR. WHITE replied that the discussion was that six of the seven board members felt that they should see about the availability of alternative meeting places. Number 0529 REPRESENTATIVE HODGINS asked what brought out the need for physical safety in the Anchorage meetings. Number 0535 DR. WHITE replied that they are discussing allocative issues and when people do not get the amount of fish that they think they should, emotions run very high. Number 0538 REPRESENTATIVE HODGINS asked if he has caused emotions to run even higher by changing the meeting location. DR. WHITE replied that the discussion to move the meeting was to maintain order and have public safety. REPRESENTATIVE HODGINS stated that he understood that, but the public safety problem was in Anchorage. He said, "It is a slap in the face what you have done to the people of the Kenai Peninsula and I do not appreciate it and I will not stand for it and I would like for you to consider, reconsider, do whatever you need to do, but you need to hold that meeting in Soldotna." Number 0550 DR. WHITE replied that he has heard him clearly and stated that the board will discuss it. REPRESENTATIVE HODGINS thanked him and stated that he appreciated the job that he is doing and hoped that the outcome will be a meeting in Soldotna. Number 0559 LARRY ENGLE, previous Chairman, Board of Fisheries, testified via teleconference from Palmer that this is not something that is unusual or new to change a meeting that was scheduled. He stated that not long ago a meeting was scheduled in Cordova to deal with issues in that area, people from Fairbanks felt that it was not fair, in that it was not reasonable for people from Fairbanks to be able to attend. The board decided to keep it in Cordova. He stated that prior to that, a meeting was scheduled for Dutch Harbor and it was rescheduled to Anchorage as it was the more neutral area. He stated that reasonable cost, equal access and public concerns have been factors in moving meetings. TAPE 98-11, SIDE B Number 0001 REPRESENTATIVE HODGINS stated that he understood the process and the reluctance to hold the meetings in certain areas, but that is part of government. He stated that if he really wanted to find a neutral area maybe Cincinnati, Ohio would be good. He stated that it is important to bring government close to the issue, and he stated that there is quite a bit of cost when people have to travel to the meetings, which is why the meetings are held in various places of the state. The purpose is to be able to hear input from the people from the area and those people cannot always travel. He stated that he did not find his excuses very good and hoped that the decision would be taken back to the board. He reiterated that, the board by their own volition, announced that meeting was going to be held in Soldotna and now that decision is being changed. He implored that they reconsider and meet in Soldotna as planned. Number 0245 REPRESENTATIVE OGAN stated that his sympathies are with the Board and asked that they do the right thing. CHAIRMAN AUSTERMAN asked that they let the committee know what they decide to do. HB 318 - WANTON WASTE OF SALMON Number 0350 CHAIRMAN AUSTERMAN stated that they would now continue with HB 318, as amended and asked it there is any further discussion. REPRESENTATIVE IVAN made a motion to move out CSHB 318(FSH) with individual recommendations and the attached fiscal note. REPRESENTATIVE HODGINS objected. Number 0422 CHAIRMAN AUSTERMAN called for a roll call vote. Representative Hodgins voted against the motion. Representatives Ivan, Ogan and Austerman voted in favor of the motion, therefore CSHB 318(FSH) moved out of the House Special Committee on Fisheries. HB 423 - ACCESS FISHERY TRUST/LIC. PERMIT SURCHARGE Number 0516 CHAIRMAN AUSTERMAN stated that the next order of business is HB 423, "An Act relating to the Alaska access fishery trust, purchase of commercial fisheries permits, vessels, gear, equipment, and leases by the Department of Fish and Game, sport fishing license surcharge, and the entry permit surcharge; and providing for an effective date." He called on Bruce Twomley. Number 0533 BRUCE TWOMLEY, Chairman/Commissioner, Commercial Fisheries Entry Commission (CFEC), Department of Fish and Game stated that he has talked to Representative Mulder, sponsor of HB 423, about the problems of the legislation and has recommended a work group to convene between sessions to work through some of the problems. He stated that Representative Mulder concurred with that recommendation and his recommendation would be that the work group preceded passage of the bill because there are enough problems that need to addressed. He stated that it would be important for all parties to know how the requirements for a buy-back program and how it will be implemented. He stated that it is also important to understand the Johns v. Commercial Fisheries Entry COmmission case as it affects the subject of buy-backs. The supreme court has basically said that a limited fishery can become too exclusive and if it does become too exclusive then the limited entry commission can put more permits back into the water. He stated that therefore, there are implications for whoever foots the bill for a buy-back program. He stated that the Johns case itself invalidates the language of Section 8, lines 26 and 27. He stated that he has already faced a lawsuit under the Johns ruling to eliminate the entire limited entry program for the Bristol Bay Drift Gilnet Fishery and it was only in the last 4 years. He stated that the supreme court has identified a tool to defend against the Johns claim and to support the buy-back program. It is the optimum number study, although it is not perfect and is time consuming and expensive. He stated that the result is a single number for all time in regards to the fishery. He stated that it is critical that the study is conducted as an independent and professional study. Number 1106 CHAIRMAN AUSTERMAN asked if he has ever done a study on the optimum number. MR. TWOMLEY replied that they have completed a study for the Southeast herring purse seine fishery, under a court order and public pressure to put more permits back into that fishery. The result was that the optimum number study defended the status quo. Number 1146 CHAIRMAN AUSTERMAN asked if they had ever done an optimum number study on salmon. Number 1147 MR. TWOMLEY replied that it would need to be done and the bill does call for it as it is the triggering mechanism that would have to go forward with the buy-back. The standard in the bill is that the buy-back would have to provide a direct and immediate benefit to sport fishermen. It is not known exactly what that would mean until the specifics are known. He stated that if that translated into reallocating the catch, it would be a factor that would have to be taken into account in a optimum number study. He stated that the most important aspect in doing the optimum number study is applying the statute as written which provides some standards but they are somewhat ambiguous and contradictory. An optimum number study is an exercise in statutory interpretation which means that a court could substitute its own judgement of what an optimum number ought to be. He stated that it would be helpful to have a decision from the court that the study was a sound methodology but that could take up to three years. Number 1328 MR. TWOMLEY stated that there are also some practical considerations. He referred to the 1995 setnet fishery which had 625 permits that recorded catch and 120 permits that did not record any catch and 63 permits that recorded .3 percent of the catch. 183 permits were not making demands on the resource at the cost of $24,800 a piece. The cost of retiring those permits would be more than $4.5 million. He stated that the 5 percent surcharge on the permits that the CFEC administers would only raise $200,000 a year. He stated that in order to evaluate the risks and the benefits a buy-back program it is necessary to look closely at it on a fishery by fishery basis. This bill does not provide the methodology about how to go forward. He encouraged that those considerations be discussed before proceeding. Number 1548 MR. TWOMLEY stated that he believed the bill is a good vehicle for discussing this and there are present inducements given the situation in the salmon fisheries. He stated that the CFEC would like to be involved in developing a working program. He stated that the gear groups that have looked closely at buy-backs in their fisheries have tended to turn away from sweeping buy-back programs and have looked toward incremental ways to reduce fishing efforts in the given fishery. He stated that the question has been raised for fishermen to get together privately, pool their funds to buy- out and retire permits. The CFEC has found a way for that to be done under existing law. He stated that the advantage is that a private buy-back program would be less visible to attract a John's type challenge. Number 1713 CHAIRMAN AUSTERMAN asked if the optimum number study would be needed with a private buy-back program. MR. TWOMLEY replied no, a private buy-back program could go forward if people chose to commit their money and assume that risk, it could happen right now. Number 1736 REPRESENTATIVE ELDON MULDER stated that Sections 7, 8, 9 deal with the areas of concern. He stated that he did not want them to be included in the bill because it clouds the issue. He stated that he agreed with Mr. Twomley, it is not possible to construct a buy- back program that passes all the tests. He stated that the only way to do so is to have the affected user groups come together to develop something that works for everybody. He stated that he would not mind having those sections deleted from the bill. As the optimum number study is extremely expensive and time consuming and will not be the best way to get where we want to go. He stated that if that requires a constitutional amendment then so be it. He stated that this bill is a way to get to the solutions. Number 2007 REPRESENTATIVE HODGINS asked if a group decides they want to retire their permits what will happen to those permits. Number 2014 MR. TWOMLEY replied that there, currently, is a yearly renewal fee and if a permit is not renewed for two years it is canceled. He stated that with a private buy-back program it would be possible for an individual holding a permit to contract anyone to not seek reinstatement. REPRESENTATIVE HODGINS asked if that permit could be reissued again even with an optimum study. Number 2126 MR. TWOMLEY replied no, because that is where the constitution intervenes, if there were to be an optimum number study that indicated more permits where required to make the fishery constitutional or if there was a court decision then more permits would have to be added back in. Number 2157 REPRESENTATIVE HODGINS stated that the fallacy is that there could be a way to get the permits reinstated. MR. TWOMLEY replied that is correct. Number 2231 CHAIRMAN AUSTERMAN asked if the constitution was changed to omit the optimum number, wouldn't that problem be eliminated. Number 2236 MR. TWOMLEY replied that there would be a lot to change and the reason the issue comes up is because there is a clause that authorizes limited entry but then there is a clause that states fisheries are open to everybody. He stated the only way to resolved that tension is to do an optimum number study. He stated that if a mechanism could be found under law other than an optimum number study, that would satisfy the court, that would be a way around it. Number 2405 REPRESENTATIVE HODGINS asked if it was true that on the setnet sites, buying a permit does not mean you are buying the site. MR. TWOMLEY stated that was his understanding. KEVIN DELANEY, Director, Division of Sport Fish, Department of Fish and Game, stated that one could envision a corporate effort with the Board of Fisheries, where time and area where changed in addition to permits being bought. Number 2544 REPRESENTATIVE HODGINS asked how the mechanism of setnet sites and permits interact, where if a permit was bought what would happen to the site. Number 2603 JERRY McCUNE, United Fishermen of Alaska, responded that setnet sites are different from area to area, some are leased federal sites and they are leased every year. He stated that in Cook Inlet some people own their sites and they would be looking to sell the sites with the permits. Number 2705 REPRESENTATIVE HODGINS asked if the Cook Inlet sites could be moved around. MR. McCUNE responded that was correct. Number 2830 BRENT JOHNSON, President, Kenai Peninsula Fishermen's Association, testified via teleconference from Kenai that he is opposed to HB 423. He stated that the bill states that it would buy-back boats and gear and asked what will the state do with them; if they don't burn them they will then be on the market at a decreased value and devalue the fishermen who choose not to sell. He asked the committee to keep in mind that the commercial fisheries are an important part of the economy. He asked that with the cut back in jobs related to Alaska's other natural resources jobs if it was wise to affect the commercial fishing industry. He stated that he would rather have two people making $30,000 in the setnet fishery than one person making 60,000. He stated that the salmon stocks are healthy and as last year "121 million salmon" were harvested across the state of Alaska, before 1983 that state had only exceeded this harvest one time. He stated that those kind of numbers do not support a buy-back. He stated that in the Pacific Northwest, Canada and Washington have had buy-backs generated because they did not have any fish. He stated that fishing season has always fluctuated and care needs to be taken when talking about buying something back that will permanently change the fishery when things may turn around. He stated that page 2, line 5, states "that would result in a direct and immediate benefit to sport fishermen." He asserted that the fisheries could be decreased without a handful of fish going to the sport fishermen. He stated that this is feeding the sport fishermen a line that they would benefit from a buy-back program. He stated that the technology is there for the existing fleet to continue to harvest the same number of fish. He stated that there are benefits to a slow fishery season in that young people are able to buy into the fisheries. Number 3544 DALE BONDURANT testified via teleconference from Kenai that he could not figure out how it would work and that a lot of problems would result. He questions how it would benefit the sport fish fleet. He stated that we do not owe the permit holders any money. He said "They did not pay anything for them so why does the public have to start paying them back." He stated that this is not the problem of the sport fishing industry. Number 3846 GRACE KENDALL, testified via teleconference from Kenai that HB 423 takes away from an already established commercial fishery and gives to a new commercial fishery called sport fish guiding. She stated that the reason for HB 423 is not to benefit the salmon runs or to enhance the habitat but to benefit the sport guides and enhance their pocket book at the expense of the commercial Cook Inlet fishery. She referred to page 2, line 5 of HB 423 and stated that the wording should be changed from a direct benefit to sport fishermen to sport guides because all the local sport fishermen have been shoved out of the way for the sake of the sport guides and their non-local paying customers. She asked if she understood it correctly that the local commercial drifters and set netters are supposed to help pay to put themselves out of business, so they can help the sport fishermen. She stated that the commercial fishermen were limited in 1974 for the sake of conservation of salmon runs and it has worked but it will not do anything if an unlimited amount of guides are allowed in the river drawing an exponential amount of tourists to damage and pollute the rivers. She pointed out the Cook Inlet commercial fishermen do not fish in the rivers, the drifters only take 8 percent of the silvers and the setnetters only catch 14 percent of the silvers, therefore, that only leaves the in-river fisheries to to account for the rest of the catch rate. It is time that the state starts recognizing the devastating effect they are having on the resources and stop blaming others. She stated that if the loss of fish in the rivers is due to the overuse and abuse by the in-river fisheries then it should be addressed at that level and not by destroying the local economy. Number 4142 DONNA SCHOWEILER, Commercial Fisherman, testified via teleconference from Anchorage against HB 423 because in 1974 the commercial fishermen agreed to the limited entry system under the assumption that it would be protecting their heritage and their families. She stated that in 1997 the amount of registered sport fishermen on the Kenai river was 472. These boats take on the average, two trips per day, six people each trip which equates to 54 fish per person. She said "Two trips a day with six people on board, the limit per person would be three, which equates 11,328 people per day and 33,984 fish a day. She asked that the committee think about this. Number 4349 MR. McCUNE stated that the United Fishermen of Alaska (UFA) opposes the bill as it is written, however, they do think it is an option to be looked at. It would have be crafted very carefully and be from area to area. He stated that it would have to be a voluntary buy-back program. UFA expressed that they would like have a voluntary buy-back program where each group would have to vote on it, they would assess themselves the 5 percent and pay for the permits in their areas. He stated that the way the bill is drafted, he would be paying for Bristol Bay permits whether he had a buy-back program or not. He suggested that the allocation issue be taken out all together as it causes problems. He asked why would he want to buy out his permit unless he received a gain. Number 4554 CHAIRMAN AUSTERMAN asked what allocation issue in the bill is he referring to. MR. McCUNE responded page 2, line 5 "would result in a direct and immediate benefit to sport fishermen." He stated that this would depend on the fishery and the area. He stated, for example, in the Copper River if 70 permits were bought out it would not make a difference as there are 70 permits that don't fish. TAPE 98-12, SIDE A Number 0001 MR. McCUNE suggested putting the buy-backs on a neutral ground. He stated that he had a concern on page 4, line 10. REPRESENTATIVE MULDER stated that the drafters put that in and it is not important to him. MR. McCUNE stated that it is a worthwhile discussion and some areas would like to look at it but UFA would like to get the program under the constraints that he mentioned. Number 0153 REPRESENTATIVE MULDER stated that page 2, line, 5 has a purpose in that federal requirements, in relation to sport fish licenses, prohibit the use of fish and game funds for those purposes that do not have a "direct and immediate benefit to sport fishermen." Without that language sport fishing licenses could not be used to help in the process. He stated that it is a way to ease tensions and benefit both user groups. He pointed out that in some locations this could not be done. He stated that there is a benefit to having a regional breakdown. Number 0316 MR. McCUNE stated that language on page 2, line 5 is what sets people off. He stated that one group or other should not be listed to gain from the buy-back because the gains are unknown. He stated the number of participants in some fisheries could be cut in half but the remaining boats could still catch that same amount of fish. Number 0505 REPRESENTATIVE MULDER stated that he could only reflect the area that he knew the best, which is Cook Inlet. He stated that his point is well made, a mechanism needs to be developed to evaluate which permits would give the greatest benefit to sport fishermen and then have those permits bought out by sport fishermen. Number 0545 MR. McCUNE stated that he understood the intent but thought that it would have to be voluntary by the permit holders and those benefits would be weighed after the fishery was consolidated instead of stating the direct benefit ahead of time. He suggested that allocation and this section be removed so the issue is how best could a buy-back program be implemented from area to area for those that desire to have one. Number 0636 REPRESENTATIVE MULDER stated that if that section 2 were eliminated from the bill he would not participate and the bill would not be in front of the committee. Number 0648 CHAIRMAN AUSTERMAN stated that he understood where he was coming from and it is a discussion that the committee will continue to have. He referred to the resolution by the Board of Fisheries and stated that because of Representative Mulder's interest in sport fish, he had incorporated further than what the Board of Fisheries has indicated. He stated that the committee will have to come back to that issue. He stated that the next issue is if sport fish is kept in the bill, the question is what is the Department of Interior's view on using sport fish dollars. He stated that a determination by the department should be gotten. Number 0811 MR. DELANEY stated that the way he envisioned the program to work is to have the fish and game fund purpose in statute. The state has to separately account for those things that are considered licenses to sport fishermen within the state fish and game account and those monies can only be spent on projects where a linkage can be demonstrated to a sport fish benefit. He stated that all other monies deposited in the fund can be used for any fish and wild life purposes. He stated that the way it would need to work is a separate ledger would need to be kept from the other monies. Number 1036 CHAIRMAN AUSTERMAN asked if the bill had been presented to the Department of the Interior. MR. DELANEY responded that he had asked the department if federal aid monies or license fees had been used to finance buy-back programs. He stated that the answer is that it is not an appropriate use of federal aid funds but sport fish license fees had been used in some East Coast states to facilitate a buy-back program. A direct linkage to the sport fish benefit would need to be proven. He stated that the way he reads the bill, is that if nothing was ever implemented in the 10 year time-frame then all of those monies would be available to be appropriated to fish and wildlife uses. Number 1201 CHAIRMAN AUSTERMAN referred to a February 8, 1996 letter by George Utermohle that raised the question about the Department of the Interior. He asked if there should be further written determination. Number 1243 REPRESENTATIVE MULDER stated that it would be worth pursuing and he felt confident in what Mr. Delaney has stated. There needs to be a carefully constructed plan. He stated that for example, a permit that had a high intercept king salmon rate with the owner willing to sell it, could then be purchased from the access trust fund. Number 1337 CHAIRMAN AUSTERMAN stated that there was reference in the Board of Fisheries resolution to the Magnuson-Stevens funding of buy-back programs on the East Coast and Washington state. He asked if that had been considered. Number 1347 REPRESENTATIVE MULDER stated that he has contacted Senator Stevens office and it is available. He stated that it is a low interest loan program meant to be utilized for buy-back type programs. It could be capitalized very quickly. He stated that in the end, there would be an assessment of the affected user groups to implement a buy-back program and capitalized 100 percent by the fund from D.C. and paid back as a loan through the different assessments to the affected groups. Number 1449 REPRESENTATIVE HODGINS asked if he envisioned an incentive for various group to buy-back permits within the group. He asked if he was considering letting reduced fleets being able to fish longer. REPRESENTATIVE MULDER stated that he would expect the commercial fisheries to come to the table and develop a program that made sense for them. He stated that he would feel comfortable with that. He stated that in many of the regions there are multiple fishermen making close to nothing so with a reduced fleet is would be better to have one person making something. Number 1636 CHAIRMAN AUSTERMAN stated that the HB 423 would be held over. ADJOURNMENT CHAIRMAN AUSTERMAN adjourned the House Special Committee on Fisheries meeting at 7:00 p.m.

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