Legislature(1993 - 1994)
02/19/1993 08:00 AM House FSH
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE SPECIAL COMMITTEE ON FISHERIES
February 19, 1993
8:00 a.m.
MEMBERS PRESENT
Representative Harley Olberg, Vice Chairman
Representative Gail Phillips
Representative Cliff Davidson
MEMBERS ABSENT
Representative Carl E. Moses, Chairman
Representative Irene Nicholia
OTHER MEMBERS PRESENT
Representative Ben Grussendorf
Representative Fran Ulmer
COMMITTEE CALENDAR
Overview: United Fishermen's Association
*HB 123 "An Act relating to loans for the purchase of
individual fishery quota shares."
HELD IN COMMITTEE FOR FURTHER CONSIDERATION
(* first public hearing)
WITNESS REGISTER
Jerry McCune, President
United Fishermen of Alaska
Representative, Cordova District Fishermen United
P.O. Box 939
Cordova, AK 99574-0939
Phone: 424-3447
Position Statement: Commented on the Fish & Game Budget and
the stock assessment of Herring
Arni Thomson, Executive Director
Alaska Crab Coalition
Member, United Fishermen of Alaska
3901 Leary Way NW, Suite 6
Seattle, WA 98107
Phone: 206-547-7560
Position Statement: Commented on the seriously depleted King
Crab market and suggested areas of
research
Jude Hensler, Fisheries Development Specialist
Bering Sea Fishermen's Association
725 Christiansen Drive
Anchorage, AK 99501
Phone: 279-6519
Position Statement: Commented that long term research was
needed in several areas of fisheries
Bruce Schactler
Member, United Fishermen of Alaska
Member, Area K Seiners Association
P.O. Box 2399
Kodiak, AK 99615-2399
Phone: 486-4686
Position Statement: Commented that fin-fish research was
badly needed and that the King Crab
industry in Alaska was seriously
depleted
Chris Moss, Representative
North Pacific Fisheries Association
P.O. Box 1115
Homer, AK 99603-1115
Phone: 235-8053
Position Statement: Commented on the interests of the United
Fisheries Association toward HB 123
Dale Kelley, Executive Director
Alaska Trollers Association
Member, United Fishermen of Alaska
130 Seward Street, Suite 505
Juneau, AK 99801
Phone: 586-9400
Position Statement: Commented on the inconsistent tag-
recovery program in the state due to the
lack of funds
Representative Ben Grussendorf
State Capitol, Room 415
Juneau, Alaska 99811-1182
Phone: 465-3824
Position Statement: Commented that he had asked the ADF&G
for a priority list of projects if given
$500K
Representative Fran Ulmer
State Capitol
Court Building, Room 601
Juneau, AK 99811-1182
Phone: 465-4947
Position Statement: Gave an overview of HB 123
Greg Winegar, Loan Manager
Juneau Lending Branch
Alaska Department of Commerce and Economic Development
P.O. Box 34159
Juneau, AK 99803-4159
Phone: 790-2693
Position Statement: Supported HB 123
Richard B. Lauber, Lobbyist
Pacific Seafood Processors Association
321 Highland
Juneau, AK 99801
Phone: 586-6366
Position Statement: Supported HB 123
Jay Ginter, Management Biologist
National Marine Fisheries Service
Member, United Fishermen of Alaska
9109 Mendenhall Mall Rd., Suite 6
Juneau, AK 99801
Phone: 586-7228
Position Statement: Explained Individual Fishing Quotas
Geron Bruce, Special Assistant
Alaska Department of Fish & Game
P.O. Box 25526
Juneau, AK 99802-5526
Phone: 465-4100
Position Statement: Supported HB 123
Martin Richard, Director
Division of Investments
Alaska Department of Commerce and Economic Development
P.O. Box 34159
Juneau, AK 99803-4159
Phone: 790-2693
Position Statement: Gave details of the interest rates on
fishing loans
Linda Behnken, Executive Director
Alaska Longline Fishermen's Association
Member, United Fishermen of Alaska
P.O. Box 1229
Sitka, AK 99835-1229
Phone: 747-3400
Position Statement: Supported HB 123
PREVIOUS ACTION
BILL: HB 123
SHORT TITLE: LOANS FOR IFQ'S
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) ULMER,Grussendorf,Navarre,
Sitton,Mackie,Davies,Davidson,Brown
TITLE: "An Act relating to loans for the purchase of
individual fishery quota shares."
JRN-DATE JRN-PG ACTION
02/03/93 215 (H) READ THE FIRST TIME/REFERRAL(S)
02/03/93 215 (H) FISHERIES, RESOURCES, L&C,
FINANCE
02/05/93 241 (H) COSPONSOR(S): BROWN
02/19/93 (H) FSH AT 08:00 AM CAPITOL 17
ACTION NARRATIVE
TAPE 93-6, SIDE A
Number 000
VICE CHAIRMAN HARLEY OLBERG called the meeting to order at
8:21 a.m. He noted only himself in attendance and asked
members of the United Fishermen's Association to begin their
overview.
JERRY McCUNE, PRESIDENT, UNITED FISHERMEN OF ALASKA (UFA),
and REPRESENTATIVE OF THE CORDOVA DISTRICT FISHERMEN UNITED,
advised that the Alaska Department of Fish & Game's
(ADF&G's) budget had remained the same over the last few
years, but had actually fallen with inflation factored in.
He further advised that the UFA placed a tremendous amount
of money in Alaska and that Alaska's stock assessment of
herring was seriously depleted.
ARNI THOMSON, EXECUTIVE DIRECTOR, ALASKA CRAB COALITION,
commented that the king crab fisheries around the state had
collapsed around 1983, and have never returned to the same
levels of production. The king crab fisheries in Adak and
Bristol Bay were still in operation, but had extremely small
yields, he noted, and suggested the reproductive cycle of
king crabs be studied in order to harvest larger quantities
of more mature crabs in the future. He also suggested that
with more investment, Alaska's shellfish industry could be
as large as the salmon industry.
Number 160
JUDE HENSLER, FISHERIES DEVELOPMENT SPECIALIST, BERING SEA
FISHERMEN'S ASSOCIATION, questioned the legislature's desire
to cut the budget when Alaskan fisheries output was falling.
The consensus among fishermen was that production was down,
yet the data showed production was up, or at least at the
level of years past, he claimed.
BRUCE SCHACTLER, MEMBER, AREA K SEINERS ASSOCIATION, advised
that this might be the last season of business in the gulf.
The Kodiak area had not had a king crab fishery in ten years
and fin-fish research in Alaska was needed terribly, he
said, and felt the Exxon settlement money needed to be put
to work upgrading fisheries and marketing fish across the
United States.
Number 315
CHRIS MOSS, REPRESENTATIVE, NORTH PACIFIC FISHERIES
ASSOCIATION, stated the Dungeness fishery in Kachemak Bay
had been open for 12 years and harvested over one million
pounds. During those years, that fishery was over-
harvested, and was closed for three years. The lower Cook
Inlet fishery was in dire financial trouble and had been for
three years, he added.
DALE KELLEY, EXECUTIVE DIRECTOR, ALASKA TROLLERS
ASSOCIATION, noted the southeast fish industry was second in
revenue only to oil. There were many fisheries in the state
that were not utilized and, the tag-recovery program was
very poor due to the lack of funding and the inability to
hire enough staff, she said.
VICE CHAIRMAN OLBERG asked each member of the UFA how they
would spend $5M of the Exxon settlement. The members of the
UFA agreed research, a stock identification program,
enforcement, management of groundfish, a tag-recovery
program, Prince William Sound tagging and long-term
research, were areas that could be funded.
REPRESENTATIVE BEN GRUSSENDORF said he and Representative
Moses had asked the ADF&G what they would do with $500K, and
had not yet gotten a response, perhaps because the ADF&G did
not want to upset the Office of Management and Budget with
the bottom line dollar figure, he surmised.
MS. KELLEY advised of the need for the state to invest in
public education across the U.S. She suggested a public
television documentary showing the difference between
offshore versus coastal driftnets. Many people in the south
boycotted seafood because they were misinformed and thought
that all driftnets caught dolphins and were harmful, she
believed.
MR. McCUNE suggested putting enforcement officers back under
the ADF&G, and not under the Department of Public Safety.
He informed the group that officers oftentimes did not know
their way around the rivers, or even how to run a boat.
TAPE 93-6, SIDE B
Number 000
REPRESENTATIVE FRAN ULMER commented that the "Common Sense"
booklets that had been distributed around the building
during the week did not explain the details of the fishing
industry in Alaska as it should. When comparing state
expenditures, there needed to be a note that showed
Alaska's fishing industry alone was larger than most states'
entire industry total.
Number 120
REPRESENTATIVE CLIFF DAVIDSON asked how the reception to the
UFA had been in the majority offices.
Mr. McCUNE advised that most offices had been receptive to
their ideas, but the Anchorage people especially needed more
education on fishery issues.
HB 123: LOANS FOR IFQ'S
Number 163
REPRESENTATIVE ULMER spoke briefly about HB 123, which
related to loans for individual fishing quotas (IFQs). She
advised that it allowed Alaskan fishermen to have the
financial backing to purchase quota shares by extending the
existing limited entry permit loan program to quota shares.
Currently, there was money in the revolving loan fund which
allowed capitalization of this program without having to
find new money, she said, and added the federal government
had advised that it would be late this year before the
regulations were in place and they did the adjudications
necessary to determine who got the quota shares and how much
they would be. "If we put HB 123 in place this session, it
will be ready when the federal government finishes the
regulations," she said.
GREG WINEGAR, LOAN MANAGER, DEPARTMENT OF COMMERCE AND
ECONOMIC DEVELOPMENT (DCED), advised that HB 123 amended the
loan program and made it more available to more people.
Currently the interest rate was eight percent he said, and
finished by saying that the department supported HB 123.
RICK LAUBER, LOBBYIST, PACIFIC SEAFOOD PROCESSORS
ASSOCIATION, testified in support of HB 123. He said the
worth of the quota share was unknown, but he thought
borrowers should be able to pay it off in about five years.
Number 420
JAY GINTER, BIOLOGIST, NATIONAL MARINE FISHERIES SERVICE,
defined IFQs and advised that the concept would be expensive
to implement. He thought the cost versus benefit ratio was
about ten to one.
REPRESENTATIVE ULMER asked if the federal government was
planning to implement a loan program similar to the program
in HB 123.
MR. GINTER was not aware of such a program on the federal
level.
REPRESENTATIVE DAVIDSON asked if the federal government was
more concerned with preserving businesses of the small
fishermen or just with the efficiency of harvests.
MR. GINTER advised that the federal government looked to
support smaller fishermen by providing a one percent cap on
the harvests and a .5% cap on crab harvests.
MR. THOMSON interjected that the UFA had not been involved
in developing the IFQ program, yet they liked the concept of
HB 123. He further said that HB 123 needed restraint
language to not make loans to people who already had loans.
Loans should be made to really small fishermen and crew
members who wished to be self-supporting, he believed.
MR. SCHACTLER suggested the loan program was a great idea,
but needed refinancing options consistent with programs in
other states.
Number 576
GERON BRUCE, SPECIAL ASSISTANT, ADF&G, advised that the
ADF&G supported HB 123.
Number 590
REPRESENTATIVE ULMER asked whether or not loans could be
linked to landing the product in Alaska and if that was
feasible. She also asked about changing the loan rates.
MARTIN RICHARD, DIRECTOR, DIVISION OF INVESTMENTS, DCED, had
no comment on the first question and asked how, from a
lending standpoint would he enforce how or where fishermen
landed their fish. In response to the second question, he
said that fishing loans were currently refinanced at 10.5%,
as required by statute. He then stated the DCED had always
charged the maximum rate which was a fixed, floating rate
based on the Wall Street prime. He noted one problem with
refinancing many loans at a time was that it was labor-
intensive to modify each loan.
LINDA BEHNKEN, EXECUTIVE DIRECTOR, ALASKA LONGLINE
FISHERMEN'S ASSOCIATION, said British Columbia went to a
quota share program. She added that Alaska needed to
develop and market more value-added products. Further, she
would like to see more consistent fishing throughout the
year instead of the one-day, 30K pound catches.
TAPE 93-7, SIDE A
Number 000
MS. BEHNKEN said longline fishermen supported HB 123.
ADJOURNMENT
VICE CHAIRMAN OLBERG asked members and the public if there
were further comments. Hearing none, he adjourned the
meeting at 9:55 a.m.
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