Legislature(2005 - 2006)CAPITOL 124

04/29/2005 08:45 AM House FISHERIES


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08:56:12 AM Start
08:56:46 AM Board of Fisheries
09:41:13 AM Alaska Commercial Fisheries Entry Commission (cfec)
09:52:12 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation hearing: TELECONFERENCED
Board of Fisheries
Alaska Commercial Fisheries Entry
Commission
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                         April 29, 2005                                                                                         
                           8:56 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Gabrielle LeDoux, Co-Chair                                                                                       
Representative Bill Thomas, Co-Chair                                                                                            
Representative Jim Elkins                                                                                                       
Representative Peggy Wilson                                                                                                     
Representative Woodie Salmon                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative John Harris                                                                                                      
Representative Mary Kapsner                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
CONFIRMATION HEARING(S)                                                                                                         
                                                                                                                                
Board of Fisheries                                                                                                            
                                                                                                                                
     Rupert Andrews - Juneau                                                                                                    
     John Jensen - Peterburg                                                                                                    
     Melvan Morris - Kodiak                                                                                                     
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
Alaska Commercial Fisheries Entry Commission (CFEC)                                                                           
                                                                                                                                
     Peter Froehlich - Juneau                                                                                                   
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to report.                                                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                              
JULIE KAVANAUGH                                                                                                                 
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Posed questions and comments to the                                                                        
appointees.                                                                                                                     
                                                                                                                                
CARL CROME                                                                                                                      
Petersburg, Alaska                                                                                                              
POSITION STATEMENT:   Testified  in support of  reconfirmation of                                                               
John Jensen and Mel Morris.                                                                                                     
                                                                                                                                
RUPERT ANDREWS, Appointee                                                                                                       
to the Board of Fisheries                                                                                                       
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Testified  as appointee  to  the Board  of                                                               
Fisheries.                                                                                                                      
                                                                                                                                
JOHN JENSEN, Appointee                                                                                                          
to the Board of Fisheries                                                                                                       
Petersburg, Alaska                                                                                                              
POSITION  STATEMENT:   Testified  as appointee  to  the Board  of                                                               
Fisheries.                                                                                                                      
                                                                                                                                
MELVAN MORRIS, Appointee                                                                                                        
to the Board of Fisheries                                                                                                       
Kodiak, Alaska                                                                                                                  
POSITION  STATEMENT:   Testified  as appointee  to  the Board  of                                                               
Fisheries.                                                                                                                      
                                                                                                                                
PETER FROEHLICH, Appointee                                                                                                      
to the Commercial Fisheries Entry Commission (CFEC)                                                                             
Alaska Department of Fish & Game (ADF&G)                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:    Testified  as appointee to  the Commercial                                                               
Fisheries Entry Commission.                                                                                                     
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
                                                                                                                                
CO-CHAIR  BILL  THOMAS  called the  House  Special  Committee  on                                                             
Fisheries  meeting  to  order at  8:56:12  AM.    Representatives                                                             
Thomas, LeDoux,  Wilson, and Elkins  were present at the  call to                                                               
order.   Representative  Salmon  arrived as  the  meeting was  in                                                               
progress.                                                                                                                       
                                                                                                                                
^CONFIRMATION HEARING(S)                                                                                                      
                                                                                                                                
^Board of Fisheries                                                                                                           
                                                                                                                                
CO-CHAIR THOMAS announced  that the only order  of business would                                                               
be  the   confirmation  hearings  for  four   of  the  governor's                                                               
appointments to various  boards as listed above  in the committee                                                               
calendar.    He  stated  that the  committee  would  hear  public                                                               
testimony first before addressing the nominees.                                                                                 
                                                                                                                                
8:56:46 AM                                                                                                                    
                                                                                                                                
JULIE  KAVANAUGH asked  the  Board of  Fisheries  members if  the                                                               
board would  continue exclusively using its  subcommittee on Gulf                                                               
of  Alaska   groundfish  rationalization  as  the   board's  sole                                                               
resource for guidance, "or will  this board take advantage of its                                                               
local advisory  committees [on] which  the board has  depended on                                                               
in the past for advice and local insight?"  She continued:                                                                      
                                                                                                                                
     I also was interested in  an opinion from the [Board of                                                                    
     Fisheries] on  the existing examples of  unequal shares                                                                    
     -  one example  has been  presented as  a setnet  shore                                                                    
     lease  -  due   to  the  fact  that   these  sites  are                                                                    
     historically better producing than  others.  It is well                                                                    
     noted  that  a  site  lease  does  not  predetermine  a                                                                    
     specific amount of  catch or imply that  a claim, prior                                                                    
     to  catching it,  is there.   Hard  work, skill,  [and]                                                                    
     weather  factor into  this.   The failure  of equipment                                                                    
     and lost  opportunity can prevent any  shore lease from                                                                    
     producing.    Maybe  [the  Board  of  Fisheries]  could                                                                    
     explain  how a  predetermined  claim to  a resource  is                                                                    
     different than a special privilege.                                                                                        
                                                                                                                                
MS. KAVANAUGH continued:                                                                                                        
                                                                                                                                
     I  would  also wonder  how  this  [Board of  Fisheries]                                                                    
     considers  consolidation  benefiting   the  fixed  gear                                                                    
     fleet  and small  boat fleet.  ... I  was wondering  if                                                                    
     this  [Board   of  Fisheries]   could  expand   on  the                                                                    
     difference  between limiting  the  access rights  under                                                                    
     the  limited  entry  versus  assigning  allocations  of                                                                    
     resource by history.                                                                                                       
                                                                                                                                
8:59:37 AM                                                                                                                    
                                                                                                                                
CARL CROME  stated that he  has been commercially fishing  for 45                                                               
years.   He testified  in support of  the reconfirmation  of John                                                               
Jensen and  Mel Morris to the  Board of Fisheries.   He commented                                                               
that  Mr. Morris  and Mr.  Jensen  "bring lots  of expertise  and                                                               
experience to  the board;  they can be  very objective  and open-                                                               
minded on matters before the board."                                                                                            
                                                                                                                                
9:01:47 AM                                                                                                                    
                                                                                                                                
RUPERT ANDREWS,  Appointee to the  Board of  Fisheries, presented                                                               
his background information  to the committee.   He explained that                                                               
he is finishing his first three-year  term on the board.  He came                                                               
to Alaska  in 1959 to work  with the Alaska Department  of Fish &                                                               
Game (ADF&G), where he worked for 23 years.  He stated:                                                                         
                                                                                                                                
     I consider  working on the  Board of Fisheries  sort of                                                                    
     finishing  up  a  wonderful   career  in  fisheries  in                                                                    
     Alaska.   But  it's also  a real  honor to  be able  to                                                                    
     represent the resource  and the users, and  to see what                                                                    
     I can do to help them,  using my experience and my long                                                                    
     time in  Alaska.  I  think the last three  years [were]                                                                    
     ...  the most  important of  my life  and I  learned so                                                                    
     much.    There are  new  fisheries  going on  now  that                                                                    
     weren't when I  was in the department.   And I consider                                                                    
     it a fascinating  thing to do.  It's  also an important                                                                    
     thing. ...  There's some grim  things happening  out on                                                                    
     the coastal communities of Alaska,  and that is they're                                                                    
     disappearing  one person  by  one  person because  they                                                                    
     can't make  a living.  And  I think that the  board ...                                                                    
     can play a bigger part  in improving the quality of the                                                                    
     fisheries in  getting a better price  to the fishermen,                                                                    
     if possible.   And I think  we can do that  through the                                                                    
     regulatory means.                                                                                                          
                                                                                                                                
9:04:51 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX asked  Mr. Andrews to comment  on Ms. Kavanaugh's                                                               
questions regarding the use of  local advisory committees, rather                                                               
than the groundfish stakeholders  committee, in the discussion of                                                               
groundfish rationalization.                                                                                                     
                                                                                                                                
9:05:59 AM                                                                                                                    
                                                                                                                                
MR. ANDREWS replied:                                                                                                            
                                                                                                                                
     [The state only has] authority  out to three miles, and                                                                    
     then rationalization  has been  a federal  program, not                                                                    
     only  in bottom  fish but  in crab.   And  so we  don't                                                                    
     really get  involved in  that.   But within  the three-                                                                    
     mile limit we do.  And  we use all the information that                                                                    
     we  possibly  can  and  we   seek  it  constantly  from                                                                    
     advisory committees,  and any other committee  too that                                                                    
     happens  to be  formed for  the purposes  of professing                                                                    
     and pushing our  fisheries in some way  that's going to                                                                    
     be  productive.  ...  But  we   only  get  involved  in                                                                    
     rationalization  as a  partner  ...  through our  board                                                                    
     committee   with   the   ...  North   Pacific   Fishery                                                                    
     Management Council.                                                                                                        
                                                                                                                                
CO-CHAIR LEDOUX  commented, "You're probably going  to be getting                                                               
pretty involved  with that  in the  next couple  of years  as the                                                               
[North Pacific Fishery Management  Council] goes ahead with their                                                               
groundfish rationalization  programs.   Are you familiar  with SB
113?"                                                                                                                           
                                                                                                                                
MR. ANDREWS replied that he was not.                                                                                            
                                                                                                                                
CO-CHAIR LEDOUX  explained that  SB 113 would  give the  Board of                                                               
Fisheries and  the Commercial  Fisheries Entry  Commission (CFEC)                                                               
the  legal  authority  to  create  [dedicated  access  privileges                                                               
(DAP)] regarding the fish within the three-mile limit.                                                                          
                                                                                                                                
9:08:01 AM                                                                                                                    
                                                                                                                                
MR. ANDREWS remarked, "That sounds logical to me."                                                                              
                                                                                                                                
CO-CHAIR LEDOUX continued:                                                                                                      
                                                                                                                                
     The  question is,  if you  are given  the authority  to                                                                    
     [create DAPs] within the three  mile limit, will you be                                                                    
     working with  the ... fisheries advisory  committees in                                                                    
     the  local  communities,  as opposed  to  strictly  the                                                                    
     groundfish  stakeholders committee,  which I  think was                                                                    
     set up  through the  [North Pacific  Fishery Management                                                                    
     Council].                                                                                                                  
                                                                                                                                
MR. ANDREWS responded:                                                                                                          
                                                                                                                                
     A  committee  set  up  by  the  North  Pacific  Fishery                                                                    
     Management Council  probably would take a  situation of                                                                    
     advisory to  us on  the board, and  we would  work more                                                                    
     with  the state  advisory  committees,  which we  have.                                                                    
     It's a  matter of  record at  every board  meeting that                                                                    
     the  recommendations and  suggestions  of the  advisory                                                                    
     committees are  well considered and  for the  most part                                                                    
     are taken into  the final deliberations and  wind up in                                                                    
     the final solution.   So I'm not sure how  we would fit                                                                    
     in  with the  federal  rationalization  committee.   We                                                                    
     consider  anything between  the beach  and three  miles                                                                    
     out as state water....                                                                                                     
                                                                                                                                
9:10:00 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX  asked Mr. Andrews  if he has any  feelings about                                                               
limited access  and programs like  the Individual  Fishing Quotas                                                               
(IFQs) within the three-mile limit.                                                                                             
                                                                                                                                
MR. ANDREWS answered:                                                                                                           
                                                                                                                                
     No, I don't.  I think  that the IFQs, from my viewpoint                                                                    
     in  what I've  seen so  far, in  the halibut  fisheries                                                                    
     work very well.   Halibut is now being fished  10 or 11                                                                    
     months out of  the year.  You buy fresh  halibut on the                                                                    
     market in Alaska, it's $10  a pound; that's the highest                                                                    
     I've ever  seen since 1949.   So I think that  IFQs are                                                                    
     working  for  the  fishermen   and  for  the  industry.                                                                    
     Obviously, the  public is doing  the buying  and wanted                                                                    
     fresh  fish.   And the  IFQs did  away with  the salmon                                                                    
     derby-type of mentality and people  are able to fish in                                                                    
     more  moderate weather;  there's a  safety factor  also                                                                    
     involved  in that.    So I  think  that they've  worked                                                                    
     really well for the halibut  fisheries, and I don't see                                                                    
     how  it wouldn't  work  the same  way  for other  IFQs,                                                                    
     whether  you're  talking  crab or  whatnot.    And  the                                                                    
     village communities  have also  received IFQs,  too, so                                                                    
     it's worthwhile for the remote coastal communities.                                                                        
                                                                                                                                
9:11:29 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX  related her understanding that  only the smaller                                                               
villages have received IFQs.  She  asked Mr. Andrews, "How do you                                                               
feel  that  the   IFQ  program  has  worked  as   far  as  larger                                                               
communities  are   concerned,  and   your  whole   feeling  about                                                               
consolidation  to communities,  for  example, that  might not  be                                                               
buying IFQs?"                                                                                                                   
                                                                                                                                
MR. ANDREWS asked for clarification  of what was meant by "larger                                                               
communities."                                                                                                                   
                                                                                                                                
CO-CHAIR LEDOUX used Kodiak as an example of a larger community.                                                                
                                                                                                                                
MR. ANDREWS  replied, "I  think the definition  so far  would not                                                               
fit a situation like Kodiak."                                                                                                   
                                                                                                                                
CO-CHAIR LEDOUX commented,  "I know it doesn't fit  Kodiak, so my                                                               
question for you  is, 'How do you feel that  consolidation of the                                                               
fisheries are affecting  coastal communities such as  Kodiak?  Do                                                               
you think  [consolidation] is a good  thing or do you  think this                                                               
is a bad thing?'"                                                                                                               
                                                                                                                                
9:13:17 AM                                                                                                                    
                                                                                                                                
MR. ANDREWS  responded that he cannot  give Representative LeDoux                                                               
an answer to that until he had given it more consideration.                                                                     
                                                                                                                                
CO-CHAIR LEDOUX  asked, "Is  that one of  the things  that you're                                                               
going  to  be  considering  when you  consider  [DAPs]  vis-à-vis                                                               
groundfish rationalization - the effects on communities?"                                                                       
                                                                                                                                
MR. ANDREWS replied,  "Again, I can't answer that  either for the                                                               
simple reason  that that ... would  be up to the  chairman of the                                                               
board to see  how that would be  brought up.  And  then we'd have                                                               
to  have  a  lot of  testimony  on  it  before  we could  make  a                                                               
decision."                                                                                                                      
                                                                                                                                
9:14:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON asked  Mr. Andrews  how often  he has  not                                                               
been able  to testify at  a Board of  Fisheries meeting due  to a                                                               
conflict of interest.                                                                                                           
                                                                                                                                
MR. ANDREWS replied that he has never recused himself.                                                                          
                                                                                                                                
9:14:50 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS pointed out that  [HB 241] would allow commercial                                                               
fishermen  to participate  in  discussion  regardless of  whether                                                               
they have  a conflict of  interest.  He  asked Mr. Andrews  if he                                                               
supported this idea.                                                                                                            
                                                                                                                                
MR. ANDREWS  responded, "It's not  a matter of whether  I support                                                               
or  reject it.   We  work for  the legislature;  you extend  your                                                               
authority  to us.   If  you pass  the bill,  that's exactly  what                                                               
we'll do...."                                                                                                                   
                                                                                                                                
CO-CHAIR THOMAS  asked Mr.  Andrews if he  thought the  board had                                                               
the ability  to make  positive decisions  without the  input from                                                               
commercial fishermen on fishery issues.                                                                                         
                                                                                                                                
MR. ANDREWS replied:                                                                                                            
                                                                                                                                
     Yes, sure.  ... In  my experience  on the  board, every                                                                    
     single board member has always  done their best to look                                                                    
     at all the  facts and whatever the situation  is. ... I                                                                    
     think  you have  to keep  in mind  also ...  the public                                                                    
     views our actions closely, and  they must have a lot of                                                                    
     confidence in  the actions of  the board.  And  if they                                                                    
     feel that  because members  have conflicts  and they're                                                                    
     still voting, [the public] may  not have the same level                                                                    
     of confidence in our decisions.                                                                                            
                                                                                                                                
9:16:49 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  THOMAS  pointed  out  that  the  Alaska  Supreme  Court                                                               
recently ruled  against the allocation  of salmon in  the Chignik                                                               
fishing  cooperative.   He asked  Mr. Andrews  if the  board will                                                               
review that  issue again, or  if the board  has given up  on that                                                               
idea.                                                                                                                           
                                                                                                                                
MR. ANDREWS answered:                                                                                                           
                                                                                                                                
     It  is my  understanding that  we will  try to  resolve                                                                    
     that question  by emergency order.   There's fifty-five                                                                    
     families  out there  that, if  [the  board doesn't]  do                                                                    
     something  soon, ...  will completely  go under,  and I                                                                    
     can't stand  to see  that happen to  Alaskans.   And it                                                                    
     will happen.   The supreme court, in our  view, made an                                                                    
     error  in judgment  and  the error  was  they used  the                                                                    
     limited entry  law to say  that the Board  of Fisheries                                                                    
     had  no authority  to  regulation  [cooperatives].   It                                                                    
     even goes a little bit  farther than that: there is, as                                                                    
     you know,  a legislative  committee to  restructure the                                                                    
     salmon fisheries  in Alaska.   And we just lost  one of                                                                    
     our important tools; we've lost  authority.  And I hope                                                                    
     that we  get that back  in legislation next year.   But                                                                    
     for  this  year, it's  a  very  serious matter  to  the                                                                    
     people in  Chignik.  We  [the Board of  Fisheries] will                                                                    
     probably be  meeting in the  next five to ten  days, or                                                                    
     as soon  as possible, to  try to resolve  the situation                                                                    
     for those 55-60 families out in Chignik.                                                                                   
                                                                                                                                
9:18:38 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS noted  that United Fishermen of  Alaska (UFA) and                                                               
Alaska  Trollers  Association  (ATA) have  submitted  letters  of                                                               
support for Mr. Andrews.                                                                                                        
                                                                                                                                
9:18:53 AM                                                                                                                    
                                                                                                                                
JOHN JENSEN, Appointee  to the Board of  Fisheries, presented his                                                               
background information  to the  committee.  He  said that  he was                                                               
born and  raised in Petersburg,  and has fished  commercially for                                                               
40 years.   He noted  that he  is finishing his  first three-year                                                               
term  on the  board,  which  has been  a  "very intense  learning                                                               
experience."  He  commented, "I'd like to see  a strong, healthy,                                                               
sustainable fishery  for the  future for all  user groups,  and I                                                               
enjoy dealing with the issues...."                                                                                              
                                                                                                                                
9:20:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON asked  Mr. Jensen  how many  times he  has                                                               
been conflicted  out on the board  so that he was  not allowed to                                                               
testify.                                                                                                                        
                                                                                                                                
MR. JENSEN replied:                                                                                                             
                                                                                                                                
     I couldn't  give you a  number right now, but  it seems                                                                    
     like ...  I end up  sitting on  the bench quite  a bit,                                                                    
     and  it's fairly  frustrating, especially  when, during                                                                    
     deliberations  they start  working on  the fine  points                                                                    
     and I'm  not able  to offer  my expertise  on different                                                                    
     subjects that come  up. ... It's just real  hard for me                                                                    
     to sit  out in  the audience  and not  be able  to help                                                                    
     with  the  small  details, for  instance,  like  cotton                                                                    
     twine in  crab pots,  etcetera. ...  Some of  the board                                                                    
     members aren't familiar with it;  it's hard for them to                                                                    
     understand, and  I have a  hard time sitting  out there                                                                    
     and not being able to explain it to them.                                                                                  
                                                                                                                                
9:21:57 AM                                                                                                                    
                                                                                                                                
MR. JENSEN, in response to  Representative Wilson, explained that                                                               
board  members  are  allowed  to give  three  minutes  of  public                                                               
testimony, but members are not  put on subcommittees if they have                                                               
been conflicted out on the issue.                                                                                               
                                                                                                                                
9:22:56 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX, regarding SB 113,  asked Mr. Jensen if the Board                                                               
of Fisheries  would gather public testimony  from the communities                                                               
to be affected by the DAPs.                                                                                                     
                                                                                                                                
MR.  JENSEN replied  that  he  had heard  about  SB  113, and  he                                                               
commented,  "We do  listen to  the advisory  people very  closely                                                               
when they're talking about something very close to their homes."                                                                
                                                                                                                                
CO-CHAIR  LEDOUX  asked  if  Mr.   Jensen  has  any  preconceived                                                               
feelings about DAPs in state waters.                                                                                            
                                                                                                                                
MR. JENSEN responded,  "I'm a little bit  nervous about dedicated                                                               
access privileges....   There's both  good and bad points  on the                                                               
quota shares that  have happened ... since [1988 or  1989].  I've                                                               
seen both  positives and negatives.   It's good  biologically for                                                               
the stocks,  but it hasn't  been all that  great for some  of the                                                               
coastal communities, especially the one  that I live in.  There's                                                               
been some definite set-backs."                                                                                                  
                                                                                                                                
9:24:50 AM                                                                                                                    
                                                                                                                                
CO-CHAIR   LEDOUX  asked   Mr.  Jensen   if  he   would  envision                                                               
formulating  a  DAP program  in  conjunction  with the  fisheries                                                               
advisory  communities,  or  if  he   would  rely  mostly  on  the                                                               
groundfish stakeholders committee.                                                                                              
                                                                                                                                
MR. JENSEN answered  that all participating people  would need to                                                               
be involved.                                                                                                                    
                                                                                                                                
9:25:55 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS noted that UFA and ATA endorsed Mr. Jensen.                                                                     
                                                                                                                                
9:26:12 AM                                                                                                                    
                                                                                                                                
MELVAN MORRIS, Appointee  to the Board of  Fisheries, stated that                                                               
he grew up  in Kodiak and still  resides there.  He  has a degree                                                               
in wildlife  management and worked  in fisheries management.   He                                                               
currently owns a small seafood marketing company.  He commented:                                                                
                                                                                                                                
     I've enjoyed the  two and a half years  that I've spent                                                                    
     on the Board of Fisheries;  it's been an opportunity to                                                                    
     sort  of  extend  my  career a  little  bit.  ...  It's                                                                    
     interesting  to  go  around  the  state  and  meet  old                                                                    
     friends and  find out  what the  issues are  with other                                                                    
     people and  try to deal  with issues that  are critical                                                                    
     to them.  It's been  a good experience working with the                                                                    
     board.  I think we  work well together.  Obviously [we]                                                                    
     don't always  agree; in fact  [we] don't agree  most of                                                                    
     the time, but we hear all  sides of every issue and are                                                                    
     able to  participate in critical issues  that will form                                                                    
     the future of our fisheries.                                                                                               
                                                                                                                                
MR.  MORRIS  pointed  out  that  he  participates  in  the  joint                                                               
protocol committee, which  is a committee of  three board members                                                               
and three North  Pacific Fishery Management Council  members.  He                                                               
also   is   a  member   of   the   Gulf  of   Alaska   Groundfish                                                               
Rationalization   Committee   and    the   Crab   Rationalization                                                               
Committee,  and  he   is  chair  of  the   Prince  William  Sound                                                               
Allocation Committee.  He said, "I feel there is some work left                                                                 
to be done; I'd like to be a part of it."                                                                                       
                                                                                                                                
9:29:40 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX asked Mr. Morris to answer the same questions                                                                   
she had posed to the previous nominees.                                                                                         
                                                                                                                                
MR. MORRIS replied:                                                                                                             
                                                                                                                                
     In reference to your first  question, what sort of help                                                                    
     we would be looking  for in making decisions, supposing                                                                    
     that SB  113 is turned  into [law]: we  would certainly                                                                    
     be looking  for participation  from all parties,  as we                                                                    
     have  with the  committee that  we now  have.   We have                                                                    
     been open  to testimony  and we've actually  received a                                                                    
     good  deal  of it.    Whether  the committee  could  be                                                                    
     restructured or whether we would  be looking at setting                                                                    
     up  separate meetings;  all these  things ...  would be                                                                    
     pretty  much at  the forefront  with what  the chairman                                                                    
     felt  we could  do with  the time  constraints and  the                                                                    
     fiscal  constraints  that  might   be  upon  us.    But                                                                    
     certainly we would be looking  ... to comments, advice,                                                                    
     anything that might pertain.                                                                                               
                                                                                                                                
     As  to the  impact  of  IFQs on  communities:  it is  a                                                                    
     difficult social issue.  Certainly  the people who live                                                                    
     in the communities  that are now getting  $3.50 a pound                                                                    
     for halibut could probably relate  back to the days ...                                                                    
     [when prices  were lower].   There's a  big difference;                                                                    
     there's  been  some  marketing  improvements  over  the                                                                    
     years.   This was done,  I think, because there  was an                                                                    
     IFQ program that allowed people  to bring in fresh fish                                                                    
     pretty much year-round....                                                                                                 
                                                                                                                                
     As  far  as  DAPs,  we're  not  talking  about  an  IFQ                                                                    
     program;  we're talking  perhaps about  a version,  but                                                                    
     dedicated access  privilege means only that  the person                                                                    
     would have  the opportunity to lease  the resource from                                                                    
     the state.   There'd  be no ability  to take  the [DAP]                                                                    
     and go  out, like  you can  with an  IFQ, and  sell it.                                                                    
     And  I  think  this  is especially  beneficial  to  the                                                                    
     communities because certainly ...  you have the ability                                                                    
     to reward  owner on board  as opposed to just  an owner                                                                    
     perhaps buying all the IFQs.  ... And of course at some                                                                    
     time  the  DAP  would  have to  be  renewed  under  the                                                                    
     provisions  of  a renewable  lease.    And so  I  think                                                                    
     there's some significant differences.                                                                                      
                                                                                                                                
MR. MORRIS continued:                                                                                                           
                                                                                                                                
     We all  know that the  program has not been  worked out                                                                    
     to its finality.   There's a lot of things  to be asked                                                                    
     and answered.  The  people who are especially concerned                                                                    
     about their history in state  waters that would like to                                                                    
     see  it being  allocated to  them under  federal terms,                                                                    
     permits,   quite  frankly,   I  can   understand  their                                                                    
     frustration  and their  desire  to see  that.   But  we                                                                    
     don't have the  authority to do that,  and the [federal                                                                    
     government doesn't] have the  authority to take it away                                                                    
     from the state waters fishery to  give it to them.  And                                                                    
     so we're proposing  what we think is  the best possible                                                                    
     solution, and  that is to  look at history  that's been                                                                    
     generated  in state  waters and  say,  'We can  develop                                                                    
     some sort  of a  semi-seamless approach to  federal and                                                                    
     state waters that does give you history.' ...                                                                              
                                                                                                                                
     Twenty  years  ago  there  was  no  market  for  bottom                                                                    
     fish....   And in  the last 20  years this  fishery ...                                                                    
     has just  blossomed, it's exploded  exponentially every                                                                    
     year. ...  As the fisheries developed  we could process                                                                    
     pretty much  year-round.   We could  develop sort  of a                                                                    
     business  plan, although  we had  to develop  marketing                                                                    
     concepts over the  years.  We're down to a  few days of                                                                    
     fishing  in just  about all  of our  fisheries.   In my                                                                    
     opinion ...  is that without some  sort of restriction,                                                                    
     some way  to put  an end  to put a  race for  fish, the                                                                    
     derby-style fishery  ... we'd  be looking  at something                                                                    
     like  we ended  up with  in the  crab fisheries,  where                                                                    
     every  year  the  board  was trying  to  make  it  less                                                                    
     efficient  by cutting  the pot  limits and  restricting                                                                    
     everything,  and  we still  were  down  to an  80  hour                                                                    
     fishery in  the Bering Sea  this year....  I  don't see                                                                    
     the state being able to  afford a buy back program, and                                                                    
     ... I  don't see  us being  able to  sit here  and hope                                                                    
     that things  will get  better. ... I  think we  have to                                                                    
     have  this bill  in  order to  be doing  our  job as  a                                                                    
     board.                                                                                                                     
                                                                                                                                
9:37:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON asked Mr. Morris if he has ever been                                                                      
conflicted out during a meeting and why.                                                                                        
                                                                                                                                
MR. MORRIS replied:                                                                                                             
                                                                                                                                
     Yes, I have been disqualified  in a couple of different                                                                    
     meetings.  And to explain what  we have to do now under                                                                    
     the  Ethics Disclosure  Act: we  have to  evaluate that                                                                    
     personally and  decide whether there's a  potential for                                                                    
     ethics disclosure  and for conflict  of interest.   And                                                                    
     so it's  left up to  the individual, and I  always take                                                                    
     the  conservative approach  and  say that  ... I  don't                                                                    
     want anything to happen that  might turn into a lawsuit                                                                    
     later  that  we  can't  defend.   So  I've  taken  that                                                                    
     approach,  and  one  major issue  was  the  Cook  Inlet                                                                    
     fisheries....    As I  mentioned,  I  [market] a  small                                                                    
     amount of sockeye  there....  And I think I  have a lot                                                                    
     to offer, particularly as it  relates to quality of the                                                                    
     products and  what is  good for the  fisheries.   But I                                                                    
     feel like  I shouldn't be excluded  from those comments                                                                    
     and I  certainly have missed hearing  from [Mr. Jensen]                                                                    
     on his issues. ... I support [HB 241].                                                                                     
                                                                                                                                
9:40:56 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS noted that UFA and ATA endorsed Mr. Morris.                                                                     
                                                                                                                                
^Alaska Commercial Fisheries Entry Commission (CFEC)                                                                          
                                                                                                                                
CO-CHAIR THOMAS turned the committee's attention to the                                                                         
appointee to the Commercial Fisheries Entry Commission.                                                                         
                                                                                                                                
9:41:13 AM                                                                                                                    
                                                                                                                                
PETER  FROEHLICH, Appointee  to  the  Commercial Fisheries  Entry                                                               
Commission  (CFEC), Alaska  Department  of Fish  & Game  (ADF&G),                                                               
commented that he retired [as  a District Court Judge for Juneau,                                                               
Alaska] in January.  He stated:                                                                                                 
                                                                                                                                
     I'm excited about being on  the verge of starting a new                                                                    
     career.    I've  always   been  interested  in  fishing                                                                    
     generally. ...  I earned my  way through law  school in                                                                    
     the  Kodiak area,  crab fishing  and salmon  tendering,                                                                    
     and  dabbled   in  hand  trolling  here   in  Southeast                                                                    
     Alaska....   I've  been  interested  in the  commercial                                                                    
     fishery  entry system,  sort  of  academically; it's  a                                                                    
     pretty unique ...  model that's been looked  to even by                                                                    
     other nations.   It's been  adapted in  different forms                                                                    
     by  other  states,  other countries,  and  the  federal                                                                    
     government  in the  IFQ system.   And  I feel  that I'm                                                                    
     pretty uniquely  qualified to work  as a  limited entry                                                                    
     commission  because of  my  fishing  experience on  the                                                                    
     water,  my  experience  advising and  representing  the                                                                    
     limited entry  commission in the late  70s, when things                                                                    
     were really churning....                                                                                                   
                                                                                                                                
     I   was  involved   in  working   with  limited   entry                                                                    
     commission  issues  as  an  attorney  in  the  attorney                                                                    
     general's  office for  several years  and after  that I                                                                    
     was  working  in the  AG's  office  with all  agencies'                                                                    
     regulations and  bill proposals ...  so I  still worked                                                                    
     with limited entry quite a  bit then, because ... every                                                                    
     time they  adopt a  new fishery, they  have to  adopt a                                                                    
     new big set of regulations....                                                                                             
                                                                                                                                
                                                                                                                                
9:44:27 AM                                                                                                                    
                                                                                                                                
MR. FROEHLICH continued:                                                                                                        
                                                                                                                                
     I  think that  my experience  as a  judge has  given me                                                                    
     some    practice    with   dispute    resolution    and                                                                    
     adjudication,  and  the  commission   does  act  as  an                                                                    
     adjudicatory body sometimes on  appeals.  And basically                                                                    
     I'm interested  in this because  I feel like  I'm ready                                                                    
     for a change of pace, a change of career....                                                                               
                                                                                                                                
     If  any of  what's  being proposed  with  the [Gulf  of                                                                    
     Alaska]  groundfish situation  or  any other  fisheries                                                                    
     [that are going  to have] maximum numbers  set, I would                                                                    
     hope  that I  would be  able to  travel ...  around the                                                                    
     state for hearings.                                                                                                        
                                                                                                                                
9:46:39 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX asked if Mr. Froehlich thought the Board of                                                                     
Fisheries has the authority to overrule the Alaska Supreme Court                                                                
through an emergency regulation in the Chignik fishery.                                                                         
                                                                                                                                
MR.  FROEHLICH replied,  "I'm not  sure,  of course,  but my  gut                                                               
reaction was  that it  would take a  legislative fix  because ...                                                               
the court was interpreting the  legislative grant of authority in                                                               
the first place.   So I think  that the issue is  probably in the                                                               
lap of the legislature more than the board."                                                                                    
                                                                                                                                
9:48:11 AM                                                                                                                    
                                                                                                                                
     CO-CHAIR THOMAS  expressed concern  for people  who had                                                                    
     not   been  issued   limited  entry   fishing  permits,                                                                    
     although he felt they ought to have.                                                                                       
                                                                                                                                
MR. FROEHLICH responded:                                                                                                        
                                                                                                                                
     I  hope that  that can  be moved.  ... One  of the  big                                                                    
     issues for limited entry and  for fishing management in                                                                    
     general  is  what   they're  calling  restructuring;  I                                                                    
     understand there's  some sort of  legislative committee                                                                    
     looking at  that. ...  Reducing the  amount of  gear in                                                                    
     the  water  and being  more  efficient  with it,  [and]                                                                    
     buyback is  another way to  do it, but that  takes some                                                                    
     bucks.  But  one of the easiest ways  is just resolving                                                                    
     these [interim use permit (IUP)] appeal things.                                                                            
                                                                                                                                
9:50:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON  moved  to  forward the  names  of  Rupert                                                               
Andrews, John  Jensen, Melvan Morris,  and Peter Froelich  to the                                                               
joint session  of the House  and Senate for confirmation.   There                                                               
being  no objection,  the confirmations  of Rupert  Andrews, John                                                               
Jensen, Melvan Morris, and Peter  Froelich were advanced from the                                                               
House Special Committee on Fisheries.                                                                                           
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special Committee  on Fisheries meeting was  adjourned at 9:52:12                                                             
AM.                                                                                                                           
                                                                                                                                
                                                                                                                                

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