Legislature(2013 - 2014)CAPITOL 120

01/31/2013 10:00 AM House FISHERIES


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10:02:33 AM Start
10:03:05 AM Overview: Update on the Ua Fisheries, Seafood, and Maritime Initiative
10:56:36 AM Overview: Short Term Commercial Crew Members License
11:15:40 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentations: TELECONFERENCED
- Short Term Commercial Crew Member License
Statistics by Dept. of Fish & Game
- Update on the University of Alaska Fisheries,
Seafood and Maritime Initiative
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                        January 31, 2013                                                                                        
                           10:02 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Paul Seaton, Chair                                                                                               
Representative Eric Feige                                                                                                       
Representative Lynn Gattis                                                                                                      
Representative Craig Johnson                                                                                                    
Representative Jonathan Kreiss-Tomkins                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Bob Herron                                                                                                       
Representative Kurt Olson                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW:  UPDATE ON THE UA FISHERIES~ SEAFOOD~ AND MARITIME                                                                    
INITIATIVE                                                                                                                      
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
OVERVIEW:  SHORT TERM COMMERCIAL CREW MEMBERS LICENSE                                                                           
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
PAULA CULLENBERG, Co-chair                                                                                                      
Fisheries, Seafood, and Maritime Initiative (FSMI);                                                                             
Director, University of Alaska Fairbanks (UAF)                                                                                  
Sea Grant Marine Advisory Program                                                                                               
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Participated in the overview of the update                                                               
on the University of Alaska (UA) FSMI.                                                                                          
                                                                                                                                
VINCE O'SHEA, Member, Industry Advisory Committee (IAC)                                                                         
Fisheries, Seafood, and Maritime Initiative (FSMI);                                                                             
Vice President, Pacific Seafood Processors Association (PSPA)                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Participated in the overview  of the update                                                             
on the University of Alaska (UA) FSMI.                                                                                          
                                                                                                                                
JULIE DECKER, Member, Industry Advisory Committee (IAC)                                                                         
Fisheries, Seafood, and Maritime Initiative (FSMI);                                                                             
United Fishermen of Alaska (UFA);                                                                                               
Development Director,                                                                                                           
Alaska Fisheries Development Foundation (AFDF)                                                                                  
Wrangell, Alaska                                                                                                                
POSITION STATEMENT:   Participated in the overview  of the update                                                             
on the University of Alaska (UA) FSMI.                                                                                          
                                                                                                                                
RICK CAULFIELD, Member, Working Group                                                                                           
Fisheries, Seafood, and Maritime Initiative (FSMI);                                                                             
Provost, University of Alaska Southeast (UAS)                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Participated in the overview  of the update                                                             
on the University of Alaska (UA) FSMI.                                                                                          
                                                                                                                                
DR. MILO ATKINSON, PhD, Professor of Fisheries                                                                                  
University of Alaska Fairbanks (UAF)                                                                                            
Fairbanks, Alaska                                                                                                               
POSITION  STATEMENT:   Responded  to questions,  during the  FSMI                                                             
overview.                                                                                                                       
                                                                                                                                
KEVIN BROOKS, Deputy Commissioner                                                                                               
Alaska Department of Fish & Game (ADF&G)                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Responded  to  questions  during the  FSMI                                                             
overview and provided  the overview on the  short term commercial                                                               
crew member license program, on behalf of ADF&G.                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
10:02:33 AM                                                                                                                   
                                                                                                                                
CHAIR  PAUL   SEATON  called  the  House   Special  Committee  on                                                             
Fisheries meeting to order at 10:02  a.m.  Present at the call to                                                               
order  were   Representatives  Seaton,   Kreiss-Tomkins,  Gattis,                                                               
Johnson, and Feige.                                                                                                             
                                                                                                                                
10:03:05 AM                                                                                                                   
                                                                                                                                
^OVERVIEW:   UPDATE ON  THE UA  FISHERIES, SEAFOOD,  AND MARITIME                                                               
INITIATIVE                                                                                                                      
  OVERVIEW:  UPDATE ON THE UA FISHERIES, SEAFOOD, AND MARITIME                                                              
                           INITIATIVE                                                                                       
                                                                                                                                
CHAIR SEATON announced that the  first order of business would be                                                               
an update  on the University  of Alaska (UA)  Fisheries, Seafood,                                                               
and Maritime Initiative (FSMI).                                                                                                 
                                                                                                                                
10:05:29 AM                                                                                                                   
                                                                                                                                
PAULA  CULLENBERG,  Co-chair,  Fisheries, Seafood,  and  Maritime                                                               
Initiative  (FSMI);  Director,  University  of  Alaska  Fairbanks                                                               
(UAF)  Sea Grant  Marine Advisory  Program,  said the  Fisheries,                                                               
Seafood, and  Maritime Initiative (FSMI) is  a collaborative plan                                                               
between the industry, five state  agencies, and the University of                                                               
Alaska (UA).  The 27th  Alaska State Legislature acknowledged the                                                               
graying  of  the  Alaskan  fishing   fleet,  and  passed  HCR  18                                                               
proclaiming intent  to avail opportunities  for a  new generation                                                               
of fishermen.   The  university was  encouraged to  facilitate an                                                               
effort  to address  and strategize  what  could be  done to  help                                                               
ensure that  the current fisheries,  seafood, and  maritime (FSM)                                                               
workforce  would remain  viable  and strong.    In response,  the                                                               
university facilitated two large  industry gatherings in the last                                                               
year,  scoping  out  the complex  workforce  that  surrounds  the                                                               
industry.   She pointed  out that nearly  every coastal  city and                                                               
village has  some connection  to an aspect  of the  industry, and                                                               
additionally, a significant percentage  of the workforce is self-                                                               
employed  small   businesses.    The  university   was  asked  to                                                               
establish an  advisory committee to  work closely on  the effort,                                                               
which  the UA  President, Pat  Gamble, accomplished  in November,                                                               
2012.   She directed  attention to the  committee packet  and the                                                               
handout  titled,  "University  of  Alaska  Fisheries,  Seafood  &                                                               
Maritime  Initiative (FSMI)  January 2013  Update," to  point out                                                               
the membership  of the Industry  Advisory Committee  (IAC), which                                                               
includes:   fisheries,  seafood  and  maritime industry  official                                                               
representatives;  Alaska  Department  of  Fish  &  Game  (ADF&G);                                                               
Department  of  Labor  & Workforce  Development-Alaska  Workforce                                                               
Investment  Board (DOLWD-AWIB),  Department  of Transportation  &                                                               
Public  Facilities (DOT&PF);  Department of  Education and  Early                                                               
Development (EED);  and the Department  of Commerce,  Community &                                                               
Economic  Development (DCCED).    She stressed  that  this is  an                                                               
industry driven, collaborative effort.   Facets for consideration                                                               
include  education and  training  opportunities  and a  statewide                                                               
workforce  development  plan.     Similar  approaches  have  been                                                               
undertaken  and  proven  helpful  for  supporting  other  Alaskan                                                               
industries such as in the areas  of health care, oil and gas, and                                                               
mining.  The university is  currently facilitating the effort but                                                               
is essentially  a partner in  carrying out  the plan.   A skilled                                                               
workforce is  essential to the  Alaskan economy and  benefits the                                                               
employers,  employees, and  creates successful  businesses.   The                                                               
intent is  to focus on  career level, highly  skilled occupations                                                               
in the  FSM industry  with the  expectation to  increase resident                                                               
employment.                                                                                                                     
                                                                                                                                
10:10:42 AM                                                                                                                   
                                                                                                                                
VINCE   O'SHEA,  Member,   Industry  Advisory   Committee  (IAC),                                                               
Fisheries,   Seafood,  and   Maritime  Initiative   (FSMI);  Vice                                                               
President,   Pacific  Seafood   Processors  Association   (PSPA),                                                               
underscored  the scope  of the  seafood industry  in Alaska,  and                                                               
said  there  are  nine PSPA  organizations  which  have  invested                                                               
hundreds  of  millions  of dollars  in  Alaska  and  collectively                                                               
participate  in  nearly 100  percent  of  the state's  commercial                                                               
fisheries.     More   than   70  percent   of   the  harvest   is                                                               
purchased/processed  by PSPA  member  companies.   He made  three                                                               
points  to  stress the  importance  of  the seafood  industry  in                                                               
Alaska:  approximately 100 processing  plants operate and sustain                                                               
the economic  backbone of many  coastal communities;  creation of                                                               
markets  for fishermen  harvests  and industry  related jobs  for                                                               
Alaskans;  and   production  of  quality  food   for  the  local,                                                               
national, and  world markets;  routinely setting  export records.                                                               
The PSPA  members want  and require a  high quality  workforce to                                                               
maintain  a  competitive  edge  on   the  seafood  markets.    He                                                               
acknowledged the  greying of the  fleet and opined that  the next                                                               
generation  needs to  be prepared  to take  advantage of  the FSM                                                               
employment.   The jobs that  are being offered are  available now                                                               
and  do not  require  coastal residents  to  relocate for  hiring                                                               
purposes.   The joint FSMI  partnership has been committed  to by                                                               
PSPA  and the  key issue  is establishing  the requirements  that                                                               
will provide  the highest benefit  of the available  training and                                                               
educational resources.   Many  of jobs offer  high end  wages and                                                               
year  around positions  which  PSPA  would like  to  see held  by                                                               
Alaskans.                                                                                                                       
                                                                                                                                
10:13:44 AM                                                                                                                   
                                                                                                                                
JULIE   DECKER,  Member,   Industry  Advisory   Committee  (IAC),                                                               
Fisheries,  Seafood,  and   Maritime  Initiative  (FSMI);  United                                                               
Fishermen   of  Alaska   (UFA);   Development  Director,   Alaska                                                               
Fisheries Development  Foundation (AFDF),  offered insights  as a                                                               
fisherman and  industry advocate, stating that  the initiative is                                                               
an important  support for  the fishing  fleet.   She said  key to                                                               
understanding the  need for this  type of approach is  to realize                                                               
the  difference  in  what  is required  in  the  industry  today.                                                               
Changes  that have  evolved have  made it  different for  the new                                                               
generation  entering the  trade,  including permit  requirements;                                                               
diversification  of  effort;  high,  upfront  capital  investment                                                               
levels; and knowledge of small  business operations.  She pointed                                                               
out  that the  maritime  industry is  rebounding  in the  coastal                                                               
communities in  new ways  and creating job  growth, such  as boat                                                               
building and maintenance facilities.   It is important to plan to                                                               
provide training in  the necessary skills, she opined,  and it is                                                               
an  important  time  to  be  taking  this  step  to  support  the                                                               
industry.                                                                                                                       
                                                                                                                                
10:16:57 AM                                                                                                                   
                                                                                                                                
RICK CAULFIELD,  Member, Working  Group, Fisheries,  Seafood, and                                                               
Maritime  Initiative   (FSMI);  Provost,  University   of  Alaska                                                               
Southeast (UAS), said the goal is  to have this program become as                                                               
effective as other  industry driven initiatives.   Skill sets and                                                               
certifications for open positions  are being catalogued to enable                                                               
development of  appropriate credentials to ensure  that graduates                                                               
are on  track to fill  the gaps in  the industry.   Precedent for                                                               
this approach  has successfully been  set through the  efforts to                                                               
support other  industry.  He  reported that he was  a participant                                                               
on  the workforce  development  plan for  the  North Slope,  when                                                               
requirements   were  identified   and  classes   established  for                                                               
training  process technicians.    Similarly, a  sector by  sector                                                               
analysis was accomplished with the  health care industry, working                                                               
with hospitals around the state  to double the number of Alaskans                                                               
in  the nursing  profession.   Through a  collaborative approach,                                                               
meaningful results can be anticipated,  he opined.  He noted that                                                               
the process  is on target  with regards to UA  President Gamble's                                                               
strategic  direction  initiative.     Establishing  a  productive                                                               
partnership,  with   the  various   Alaska  public   and  private                                                               
industries throughout Alaska, is one  of the themes the president                                                               
has identified as a goal for  the university.  The advisory group                                                               
has  received  critical  feedback  and   is  in  the  process  of                                                               
accumulating occupational data from  all three sectors.  Further,                                                               
hard to fill positions and  required skill sets, or certification                                                               
needs, are also  being identified.  As the data  is analyzed, the                                                               
information  will  be  made  available  for  public  comment  and                                                               
review.   The  goal  is to  have  a workforce  plan  in place  by                                                               
November, 2013, and  begin the process of  creating priorities in                                                               
the  university   system  and   allowing  students  to   begin  a                                                               
successful course of study.  He  drew attention to the final page                                                               
of the  committee handout, titled "Fisheries,  Seafood & Maritime                                                               
Initiative  (FSMI) Towards  a strong  and sustainable  fisheries,                                                               
seafood  &  maritime  workforce  in Alaska,"  to  point  out  the                                                               
request  to  the legislature  for  an  FSMI operating  budget  of                                                               
$396,800 for  fiscal year (FY) 14.   He said this  increment will                                                               
fund  five  items that  FSMI  has  identified,  which are:    the                                                               
Alaska  Young  Fishermen's  Summit  - an  opportunity  for  young                                                               
people to learn about the complexities  of the fishery and how to                                                               
become successful  in that arena;  the statewide delivery  of the                                                               
one and  two year certificate  programs and Associate  of Applied                                                               
Science  (AAS) in  Fisheries Technology  degrees,  which the  UAS                                                               
offers, and  is expanding in partnership  with community campuses                                                               
in  Prince William  Sound  (PWS), Kodiak,  and  Bristol Bay;  the                                                               
Alaska Seafood Processors Leadership  Institute - a pilot program                                                               
educating  young  people  about  the global  markets,  and  which                                                               
should be  sustained and made permanent;  and Marine Technologies                                                               
Training via  distance learning to community  campuses.  Finally,                                                               
he added that a $3.1  million Chinook salmon research request has                                                               
been submitted in the capital budget.                                                                                           
                                                                                                                                
10:23:06 AM                                                                                                                   
                                                                                                                                
CHAIR  SEATON   noted  that  the  legislature   has  provided  an                                                               
expansion of  the corporate tax  credit system, due to  sunset in                                                               
FY 13, which  allows investment tax advantages for  50 percent of                                                               
the first $100,000 and 100 percent  of the second $100,000 and 50                                                               
percent of the next  amount up to $5 million.   He asked a series                                                               
of questions  for comment by panel  members, to wit:   the sunset                                                               
of the  tax credit legislation;  whether industry  is financially                                                               
supportive of  the topics  to be funded  in the  operating budget                                                               
request;  and if  the $396,800  is  in addition  or inclusive  of                                                               
industry funds.                                                                                                                 
                                                                                                                                
MR. CAULFIELD,  speaking on behalf  of the university,  said that                                                               
the  legislation is  an important  means  to cement  partnerships                                                               
with  industry.   As  an  example, he  said  Icicle Seafoods  has                                                               
provided funding  for programs  that are  currently offered.   He                                                               
added  that  the  local  mining companies  have  become  a  major                                                               
investor in  the university programs  and taken advantage  of the                                                               
offered tax  credits.  The hope  would be to have  this important                                                               
program continued, he opined.                                                                                                   
                                                                                                                                
MS. CULLENBERG interjected  that the UAF School  of Fisheries has                                                               
a strong,  long standing partnership  with the  at-sea processors                                                               
through  the  Pollock  Conservation Cooperative  Research  Center                                                               
(PCCRC).                                                                                                                        
                                                                                                                                
MR. O'SHEA  added that the  credits from the  processing industry                                                               
provide about  $650,000 annually for education,  tax credits, and                                                               
contributions to  the A. W.  "Winn" Brindle  Memorial Scholarship                                                               
Loan   Program,  which   was   originally   established  by   the                                                               
processors.   The intention  is to  continue program  support, he                                                               
said.                                                                                                                           
                                                                                                                                
CHAIR  SEATON underscored  the importance  of industry  providing                                                               
contributions because this is an  industry driven initiative.  He                                                               
counseled industry  to consider  the various  mechanisms provided                                                               
by the  state and ensure  that industry provides an  equal amount                                                               
of "skin in the game."                                                                                                          
                                                                                                                                
10:28:17 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  FEIGE  asked  what percentage  of  the  workforce                                                               
benefits  from  the  programs or  institutional  training  versus                                                               
advancement through the ranks.                                                                                                  
                                                                                                                                
MR. O'SHEA  said the industry  requires about 22,000  workers and                                                               
offered a  rough estimate that  perhaps 20 percent would  be high                                                               
end positions requiring specific or  certified training.  Many of                                                               
the people  who are working in  the entry level positions  do not                                                               
arrive with the  goal of continuing in the  industry and pursuing                                                               
a career.  There is current need  to go outside of Alaska to fill                                                               
the high  end jobs, such as  refrigeration technicians, technical                                                               
engineers,  and food  safety officials.   However,  he said,  two                                                               
recent Chief  Executive Officers (CEOs) attained  their positions                                                               
from beginning  in the industry, one  as an ice shoveler  and the                                                               
other from the processing line.                                                                                                 
                                                                                                                                
10:31:37 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE JOHNSON  inquired whether  the $396,800 is  in the                                                               
governor's  budget and  if the  $3.1  million is  in the  capital                                                               
budget.                                                                                                                         
                                                                                                                                
MS. DECKER  said the $396.800  is in the universities  budget but                                                               
not included in the governor's version that was passed.                                                                         
                                                                                                                                
CHAIR  SEATON asked  for deferral  of the  inquiry regarding  the                                                               
capital budget.                                                                                                                 
                                                                                                                                
10:32:40 AM                                                                                                                   
                                                                                                                                
CHAIR  SEATON surmised  that the  capital investment  required by                                                               
the new  generation entering the  fishing trade  is significantly                                                               
higher today, perhaps due to  permit costs, boats, and equipment.                                                               
He asked whether in actuality  the university training is focused                                                               
on  the  education  of  businessmen/women who  happen  to  be  in                                                               
fisheries.                                                                                                                      
                                                                                                                                
MS. DECKER  agreed that entrepreneurship is  an essential aspect,                                                               
but  a crossover  to the  maritime industry  is also  an element.                                                               
Part  of  the   challenge  is  in  addressing   the  spectrum  of                                                               
opportunities in the areas,  identifying overlap, and determining                                                               
what is  effective.  She  opined that the possibility  for people                                                               
to work their way up through the ranks remains a viable option.                                                                 
                                                                                                                                
MS.  CULLENBERG   offered  a  reminder  to   consider  the  broad                                                               
spectrum,  which includes  professional  development for  current                                                               
employees  as  well as  for  positions  that  may not  require  a                                                               
degree.  However, careers are  available and the students need to                                                               
know how  to plan their  school career  in order to  obtain their                                                               
desired goals.                                                                                                                  
                                                                                                                                
MR.  O'SHEA  reiterated that  this  has  not  been done  for  the                                                               
seafood and maritime  industries but enthusiasm can  be gained by                                                               
following  the   successful  model  developed  for   other  state                                                               
industries, as previously mentioned.                                                                                            
                                                                                                                                
10:37:34 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   KREISS-TOMKINS   asked  what   fish   technician                                                               
programs  exist in  Alaska,  or other  western  states, and  what                                                               
import this  type of  program plays in  the arena  of enhancement                                                               
and hatchery systems in Alaska.                                                                                                 
                                                                                                                                
MR.  CAULFIELD spoke  to  the  UAS program,  which  is housed  in                                                               
Ketchikan, although  the administrative  offices are  being moved                                                               
to Sitka to  take advantage of opportunities to  partner with the                                                               
hatchery that is  part of the Sheldon  Jackson Community College.                                                               
The  plan is  to  expand the  technician  program throughout  the                                                               
state.   Cooperative agreements exist,  or are being  pursued, to                                                               
offer  classes   at  Prince  William  Sound   Community  College,                                                               
Cordova, Kachemak  Bay, Kodiak,  and Bristol Bay.   He  said this                                                               
demonstrates the  interest in  entry level  training for  one and                                                               
two year programs.  Individuals  already working in the field are                                                               
choosing to  advance their skill  sets.  He said  local resources                                                               
and experts  are incorporated and  drawn upon to  tailor programs                                                               
for each  region and augment  the basic core skills  attained via                                                               
on-line delivery.                                                                                                               
                                                                                                                                
10:39:59 AM                                                                                                                   
                                                                                                                                
CHAIR  SEATON   noted  that   certifications  are   required  for                                                               
particular  aspects  of  maritime work,  to  maintain  regulatory                                                               
compliance.  Today, he said, a  fishing vessel may have an entire                                                               
wall  dedicated  to  required postings  to  indicate  inspections                                                               
completed,  drills   held,  plans   for  waste   management,  and                                                               
certificates for appropriate compliance,  among other things.  He                                                               
said Alaska Vocational Technical Center  (AVTEC), plays a role in                                                               
boat  owners  meeting  these  types  of  standards.    The  super                                                               
computer simulator system  is part of AVTEC, he  noted, and asked                                                               
if the center is being used to full advantage.                                                                                  
                                                                                                                                
MS.  CULLENBERG said  that AVTEC  has been  at the  table and  is                                                               
represented by  DOL on the  committee.  She said  that strategies                                                               
are still being formulated.                                                                                                     
                                                                                                                                
MR. O'SHEA, regarding using the  AVTEC facilities, he opined that                                                               
where  ever it  makes  sense to  do training,  is  where it  will                                                               
occur.                                                                                                                          
                                                                                                                                
                                                                                                                                
10:44:40 AM                                                                                                                   
                                                                                                                                
CHAIR   SEATON  returned   to  Representative   Johnson's  budget                                                               
question regarding the  $3.1 million, in the  capital budget, for                                                               
Chinook salmon  research.  Having reminded  the committee earlier                                                               
that finance sub-committee questions  would not be appropriate at                                                               
this time and  that the gap analysis would be  brought before the                                                               
committee   appropriately,  he   asked  how   the  $3.1   million                                                               
integrates with  the $10 million  that the governor  has included                                                               
in the budget for Chinook salmon research.                                                                                      
                                                                                                                                
10:45:19 AM                                                                                                                   
                                                                                                                                
DR.  MILO ATKINSON,  PhD, Professor  of Fisheries,  University of                                                               
Alaska Fairbanks  (UAF), responded  that the gap  analysis budget                                                               
request   was  meant   to  be   an  integrated   submission  that                                                               
incorporated research  from the  university and  National Oceanic                                                               
and Atmospheric Administration (NOAA).   The university developed                                                               
a plan that  requires $3.1 million and the  gap analysis includes                                                               
three $10 million  allocations, with $700,000 under  the label of                                                               
process studies.   The  understanding was  that the  remainder of                                                               
the funding  would be forthcoming via  the future appropriations.                                                               
He opined  that officials  in the UA  system were  not completely                                                               
satisfied and  that is  why there  is a  separate request  in the                                                               
universities budget.                                                                                                            
                                                                                                                                
10:46:32 AM                                                                                                                   
                                                                                                                                
CHAIR  SEATON addressed  the  committee  handout titled  "Special                                                               
Publication  No.  13-01,  Chinook  Salmon  Stock  Assessment  and                                                               
Research Plan,  2013," the "Table 1.-Average  inshore and federal                                                               
waters  harvests and  fishery-specific activities  recommended to                                                               
fill knowledge  gaps in  stock-specific harvest  assessment," and                                                               
"Table 3.-Recommended activities to  fill knowledge gaps that cut                                                               
across Chinook  salmon stocks and fisheries,"  to clarity whether                                                               
the  $3.1  million  request  dovetails into  any  of  the  listed                                                               
headings.                                                                                                                       
                                                                                                                                
DR.  ATKINSON  responded  that  the  table  3  heading,  "Process                                                               
Studies  on  the  Yukon River"  is  inappropriately  labeled  and                                                               
possibly  misleading.   The main  studies are  for the  first two                                                               
activities listed  on table 3  ["Nearshore Marine  Trawl Research                                                               
Cruises"  and   "Modeling  effort  for  Western   Alaska  Chinook                                                               
salmon"].  The university expects  to conduct the initial process                                                               
studies, which would require $700,000  of the $10 million request                                                               
from ADF&G.                                                                                                                     
                                                                                                                                
10:48:28 AM                                                                                                                   
                                                                                                                                
KEVIN BROOKS,  Deputy Commissioner,  Alaska Department of  Fish &                                                               
Game  (ADF&G),   said  the   governor's  Chinook   initiative  is                                                               
contemplated  to  be  a  $30 million,  five  year  endeavor;  $10                                                               
million is in  ADF&G's current request, with the  same amount for                                                               
FY 15  and FY 16.   It is not  anticipated that the  $3.1 million                                                               
request for  the university would be  included.  How it  would be                                                               
split out  over the  years has  yet to be  determined.   The $3.1                                                               
million  could  be spread  over  four  to five  years;  generally                                                               
categorized  as  process  studies.   The  funding  will  allow  a                                                               
collaboration of  expertise from  the department,  university and                                                               
federal agencies.   Federal money is also expected  to be brought                                                               
to  the equation,  which  is  not part  of  the executive  branch                                                               
initiative request.                                                                                                             
                                                                                                                                
10:50:33 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON  concluded that the university  would participate to                                                               
the level  of the $3.1  million, to be  defined over a  period of                                                               
years,  and  that  the  amount  is  included  in  the  governor's                                                               
request.                                                                                                                        
                                                                                                                                
MR. BROOKS  pointed out that  the university budget  requests are                                                               
prepared independently prior to integration.                                                                                    
                                                                                                                                
CHAIR  SEATON  said   it  is  important  for   the  committee  to                                                               
understand  whether  these  are   separate  budget  requests  for                                                               
independent   undertakings   by    different   entities   or   an                                                               
amalgamation.   He stated  his understanding  that there  are not                                                               
two independent Chinook research studies being proposed.                                                                        
                                                                                                                                
DR.  ATKINSON confirmed  the  chairman's  understanding and  said                                                               
that all of  the process studies will be completed  with the help                                                               
of ADF&G personnel.                                                                                                             
                                                                                                                                
REPRESENTATIVE JOHNSON restated his  question, asking whether the                                                               
$3.1 million is included in the $10 million.                                                                                    
                                                                                                                                
MR. BROOKS  said it  is not  in the $10  million but  is included                                                               
proportionately in the $30 million.                                                                                             
                                                                                                                                
10:53:40 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 10:53 a.m. to 10:56 a.m.                                                                     
                                                                                                                                
10:56:10 AM                                                                                                                   
                                                                                                                                
^OVERVIEW:  SHORT TERM COMMERCIAL CREW MEMBERS LICENSE                                                                          
      OVERVIEW:  SHORT TERM COMMERCIAL CREW MEMBER LICENSE                                                                  
                                                                                                                                
CHAIR SEATON announced that the  final order of business would be                                                               
an  overview of  the short  term commercial  crew member  license                                                               
program, by the Alaska Department of Fish & Game (ADF&G)                                                                        
                                                                                                                                
10:56:36 AM                                                                                                                   
                                                                                                                                
KEVIN BROOKS,  Deputy Commissioner,  Alaska Department of  Fish &                                                               
Game  (ADF&G), stated  that the  program was  created in  2005 to                                                               
provide opportunities  for non-residents interested in  working a                                                               
single  commercial  fishery  opening  for  seven  days  or  less;                                                               
commonly referred to as a "dude"  license.  During the first five                                                               
years numbers remained stable with  250-330 licenses sold, but in                                                               
the  last  two  years  sales  have  increased  to  509-542.    He                                                               
clarified that these  numbers refer to the  multiple purchases of                                                               
licenses.  The cost is  $30.00, meaning that a non-resident could                                                               
purchase  six in  a  season  for $180.00  rather  than buying  an                                                               
annual, non-resident license for  the $200.00 fee; representing a                                                               
loss of  revenue to the state.   He suggested that  the price set                                                               
in  2005  may  have  caused  an  unanticipated  market  response.                                                               
Referring  to  the  committee  handout   titled  "Fish  and  Game                                                               
Commercial Crew 7  Day License," he pointed out that  in the 2012                                                               
season, 17  individuals purchased 6,  $30.00 licenses.   The 2012                                                               
loss in revenue  is easily calculated to be $61,000  and over the                                                               
life of the program the total  loss has been $285,000.  He opined                                                               
that this is  not an insignificant amount, and said  it is on the                                                               
department's watch  list.  When it  was first created it  was not                                                               
known  to  what extent  the  dude  license  would sell,  but  the                                                               
dynamic  has  become  evident.    However,  the  annual  sale  of                                                               
resident crew  licenses has increased every  year, averaging just                                                               
under $10,000  annually for the last  four years.  He  said it is                                                               
speculative whether  the purchasers of the  multiple non-resident                                                               
dude licenses  would have  purchased the  annual license,  if the                                                               
choice were not available.  He  said that the Department of Labor                                                               
& Workforce Development (DOLWD) is  involved in watching this, as                                                               
a share of  the revenues are part of the  fisherman's fund, which                                                               
is essentially  a workmen's compensation account  for deck hands.                                                               
Interestingly, he said, at lower  levels, such as the purchase of                                                               
three  licenses, there  is a  loss to  the fishermen's  fund, but                                                               
with the  purchase of five  or six there is  a gain to  the fund.                                                               
He explained  that this occurs  because the fund  contribution is                                                               
39 percent  of the  sale for  the first  $50.00.   The previously                                                               
mentioned 2012 total loss of  $61,000 includes the amount that is                                                               
bound for  the fishermen's fund.   The total annual  crew license                                                               
revenue  is about  $2.7 million  and although  this represents  a                                                               
percentage in the low digits, it cannot be ignored.                                                                             
                                                                                                                                
11:02:09 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  FEIGE asked  if there  is a  resident, commercial                                                               
crew member license.                                                                                                            
                                                                                                                                
MR. BROOKS replied  yes, for an annual fee of  $60.00.  Residents                                                               
break  even if  they purchase  two dude  licenses or  one annual,                                                               
thus,  residents  do   not  appear  to  be   over  utilizing  the                                                               
opportunity.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE said  that many  of the  fisheries are  not                                                               
continuous through the year and  operate for a limited time, such                                                               
as the three week harvest in  Bristol Bay.  He suggested offering                                                               
resident/non-resident   options  only,   which  might   serve  to                                                               
encourage more Alaskan hires.                                                                                                   
                                                                                                                                
MR.  BROOKS responded  that  every  year there  is  a mixture  of                                                               
resident and non-resident purchases and  the 2012 ratio was about                                                               
50:50.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  FEIGE inquired  who is  fiscally responsible  for                                                               
the purchase  of a crew  member license;  the crew member  or the                                                               
captain.                                                                                                                        
                                                                                                                                
MR. BROOKS  answered that  it is the  responsibility of  the crew                                                               
member, and that the worker must report for work with a license.                                                                
                                                                                                                                
REPRESENTATIVE FEIGE  asked whether  industry would  experience a                                                               
shortage  of workers  if  only  two options  were  to exist,  and                                                               
whether the money represents an issue to the workers.                                                                           
                                                                                                                                
MR. BROOKS said  that the cost of the license  does not appear to                                                               
be a barrier.                                                                                                                   
                                                                                                                                
11:05:32 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON reviewed that in  2005, the legislature enacted this                                                               
measure  based  on  a  discussion   which  focused  on  providing                                                               
opportunities for non-residents to dude  fish and have an Alaskan                                                               
experience.   Law does not provide  for a visitor to  be a casual                                                               
participant  on  a fishing  boat;  a  permit  is required.    The                                                               
expectation was  to lower the  $200.00 annual fee,  advertise the                                                               
situation, and basically allow a  tourist to casually participate                                                               
in  a fishery;  also creating  a  new economic  opportunity.   He                                                               
asked whether it has ever been advertised in this manner.                                                                       
                                                                                                                                
MR. BROOKS replied that nothing  systematic has occurred and that                                                               
the  sale  of these  licenses  was  intended  to create  a  niche                                                               
market.                                                                                                                         
                                                                                                                                
CHAIR SEATON stated that it  is questionable whether the niche is                                                               
valuable  enough  to  override  the annual  loss  of  $60,000  in                                                               
license sales, and said the  legislature will need to revisit the                                                               
policy.                                                                                                                         
                                                                                                                                
11:08:01 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS  commented   that  a  non-resident                                                               
family  member may  be visiting  and desire  to participate  on a                                                               
troller or  gill-netter.  He  opined that the situation  is being                                                               
taken advantage  of, maybe not for  the purpose for which  it was                                                               
intended, although  perhaps in the  same spirit.  He  asked about                                                               
adjusting the fee  of the non-resident, seven  day license upward                                                               
in order to shift the price point to a shorter time window.                                                                     
                                                                                                                                
MR.  BROOKS agreed  that  changing the  price  point could  prove                                                               
helpful.  He said if the fee  was $100.00 for a seven day permit,                                                               
then rather  than purchase  two separate  permits for  $200.00 it                                                               
would stand to  reason to purchase the annual  permit for $200.00                                                               
outright.  It  would be difficult to predict  the market reaction                                                               
and  the  department has  not  proposed  a  bill to  address  the                                                               
situation.                                                                                                                      
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS  confirmed that the  purchase price                                                               
was specified in the original bill.                                                                                             
                                                                                                                                
CHAIR SEATON  explained the importance  of understanding  how the                                                               
system works  and the way in  which the permit revenues  are tied                                                               
into  the DOL  fishermen's fund.    One policy  question for  the                                                               
committee is  whether the state  should provide full  coverage in                                                               
the event  of an  injury to a  non-resident licensee,  keeping in                                                               
mind  that someone  just learning  is the  likeliest to  be hurt.                                                               
The  annual loss  of  revenue  is also  a  concern for  committee                                                               
consideration.                                                                                                                  
                                                                                                                                
11:12:03 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE FEIGE asked  if a visiting family  member would be                                                               
a paid crew member, or volunteering.                                                                                            
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS  theorized that  the help  would be                                                               
provided on a volunteer basis.                                                                                                  
                                                                                                                                
REPRESENTATIVE  FEIGE asked  if it  would be  possible to  exempt                                                               
anyone not receiving wages.                                                                                                     
                                                                                                                                
CHAIR SEATON said that many  gambits require consideration around                                                               
the scenario,  which the committee might  address.  Additionally,                                                               
the seven day  license could be retained with a  limit of one per                                                               
season, rather  than allowing multiple or  consecutive purchases.                                                               
He observed that many people are  figuring out how to get all the                                                               
advantages while saving money on licensing.                                                                                     
                                                                                                                                
11:14:00 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  JOHNSON  asked  whether  the bill  has  a  sunset                                                               
clause.                                                                                                                         
                                                                                                                                
CHAIR SEATON responded no.                                                                                                      
                                                                                                                                
11:14:17 AM                                                                                                                   
                                                                                                                                
MR. BROOKS offered that it  would be difficult for the department                                                               
to determine who  is or is not  being paid as a  crew member, and                                                               
tracking sequential  license purchases could also  be cumbersome,                                                               
due to  the number  of vendors throughout  the state.   Practical                                                               
limitations  exist  that create  monitoring  issues  and a  price                                                               
point adjustment could be the best approach, he opined.                                                                         
                                                                                                                                
CHAIR SEATON agreed and said crew want to be covered by the                                                                     
workmen's compensation benefit.                                                                                                 
                                                                                                                                
11:15:40 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON thanked the participants and announced the next                                                                    
meeting.                                                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Fisheries meeting was adjourned at 11:15                                                                   
a.m.                                                                                                                            

Document Name Date/Time Subjects
FSMI UPdate_2013 January.pdf HFSH 1/31/2013 10:00:00 AM
FSMI
SlidesFSMI_House Fish Special Comte_31Jan13.pdf HFSH 1/31/2013 10:00:00 AM
FSMI
UA-FSMI-Liaison-Report-to-the-Legislature-January-2013.pdf HFSH 1/31/2013 10:00:00 AM
FSMI
Fish Fund license permit revenue (2).pdf HFSH 1/31/2013 10:00:00 AM
Short Term Crewmember License
Copy of 7-DayCrew_2005-2012_By-LicYr-Name.pdf HFSH 1/31/2013 10:00:00 AM
Short Term Crew Member License
Excerpt from Chinook Stock Assessment and Research Plan 2013.pdf HFSH 1/31/2013 10:00:00 AM