Legislature(1993 - 1994)
01/22/1993 08:00 AM House RES
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE RESOURCES STANDING COMMITTEE
January 22, 1993
8:00 a.m.
MEMBERS PRESENT
Representative Bill Williams, Chairman
Representative Bill Hudson, Vice Chairman
Representative Con Bunde
Representative Pat Carney
Representative John Davies
Representative Joe Green
Representative Jeannette James
Representative Eldon Mulder
Representative David Finkelstein
MEMBERS ABSENT
None
OTHER LEGISLATORS PRESENT
Representative Irene Nicholia
Representative Cliff Davidson
Representative Harley Olberg
COMMITTEE CALENDAR
Overview of the Alaska Department of Fish and Game
WITNESS REGISTER
Carl Rosier, Commissioner
Alaska Department of Fish and Game
P.O. Box 25526
Juneau, Alaska 99802-5526
Phone: 465-4100
Position Statement: Presented overview of department
Ron Somerville, Deputy Commissioner
Alaska Department of Fish and Game
P.O. Box 25526
Juneau, Alaska 99802-5526
Phone: 465-4100
Position Statement: Spoke about the department's budget
Bob Clasby, Acting Director
Division of Commercial Fisheries
Alaska Department of Fish and Game
P.O. Box 25526
Juneau, Alaska 99802-5526
Phone: 465-4100
Position Statement: Spoke about the Division's
responsibilities
Norval Netsch, Director
Division of Sport Fish
Alaska Department of Fish and Game
P.O. Box 25526
Juneau, Alaska 99802-5526
Phone: 465-4180
Position Statement: Spoke about the Division's
responsibilities
ACTION NARRATIVE
TAPE 93-6, SIDE A
Number 000
The House Resources Committee was called to order by
Chairman Bill Williams at 8:02 a.m. Members present at the
call to order were Representatives Williams, Hudson, Bunde,
Carney, Davies, James, and Finkelstein. Members absent at
the call were Representatives Green and Mulder.
CHAIRMAN BILL WILLIAMS announced Representatives Davidson,
Olberg and Nicholia of the House Special Committee on
Fisheries were present to hear an overview of the Alaska
Department of Fish and Game (ADF&G). He then introduced the
Commissioner, Carl Rosier.
Number 050
CARL ROSIER, COMMISSIONER, ADF&G, noted most of the ADF&G's
division directors were present. He introduced them and
briefly described their roles.
MR. ROSIER discussed the economic importance of commercial
fisheries in the state, which had a value of about $1.2
billion annually. The subsistence economy, he said,
involved thousands of Alaskans and consumed 40-45 million
pounds of fish and wildlife resources each year. Recreation
was a growing industry, and non-consumptive uses of fish and
game included activities such as photography and wildlife-
watching. Other uses of the resources included trapping,
sportfishing and hunting. He said the ADF&G issued about
386,000 sport fishing licenses per year. Non-resident
licenses were more numerous in 1992 than resident licenses,
bringing in $6.5 million. Hunting licenses in 1992 numbered
about 218,000, predominantly to Alaskan residents,
accounting for $5.7 million.
MR. ROSIER described the responsibilities of the ADF&G in
managing and protecting the state's wildlife resources.
Another goal was to optimize public use and benefits.
Rehabilitation of depressed stocks and damaged habitats was
also within the ADF&G's mission, he explained. The ADF&G
had been charged with management of a sustained yield
principle, as defined by Title 16, and the ADF&G's ability
to meet its priorities depended on funding in the face of
budget cuts, he added.
MR. ROSIER noted protection of the state's management
authority was another priority, in the face of encroaching
federal agencies into fields that have historically been the
responsibility of the state. The ADF&G also had the goal of
promoting diversification of Alaska's economy.
Number 200
MR. ROSIER told the committee that an important role of the
ADF&G was to provide technical research and assistance to
the seafood industry. The ADF&G also promoted user-pay
philosophies through royalty assessments, he stated.
MR. ROSIER said the ADF&G had been striving for improved
efficiency and reduction of costs. Personnel costs and
structure, in particular, have been reevaluated and
streamlined. He addressed the specific restructuring of
divisions within the ADF&G, and talked about the role of the
ADF&G in terms of oil spill response.
MR. ROSIER briefly described the upcoming combining of
functions of the Fisheries Rehabilitation, Enhancement and
Development (FRED) division. Those functions would be
absorbed by other areas of the ADF&G, as the private non-
profit sector assumed more of the responsibility of
operating hatcheries in the state. He said the ADF&G had
been successful in rebuilding the salmon resources through
the hatchery programs and improved management. There was a
continued need for technological support, he added, which
would protect the state's previous investment in hatchery
facilities.
Number 378
MR. ROSIER referred to the ADF&G's relatively new
involvement in mariculture, and described the new industry
as a strong growth area, having the potential to expand into
many areas of the state. Oysters have been the primary
resource involved and, he said, a $9 million seed stock was
currently in the water. The mariculture industry had been
moving north toward Alaskan waters as pollution became more
of a problem in the lower 48 states. The growth of the
industry placed demands on the ADF&G, he explained, for more
technological and seed stock support. He noted oysters did
not have natural reproduction in Alaskan waters because of
the colder water temperatures.
MR. ROSIER discussed reprioritization of programs within the
ADF&G, including a proactive management program. Lands open
to hunting and trapping have been diminished, resulting in a
more aggressive management approach to the available lands,
he explained. Research work had also been reprioritized, he
said, with a focus on genetics that can be applied to
hatchery programs and in genetic tags, useful in stock
separation.
Number 400
MR. ROSIER explained some of the challenges in fisheries
management on the Yukon and Kuskokwim, and said a strong
information base had to be developed to assure protection of
the resource. He discussed revenue enhancement and
fisheries development as means to economic diversification.
He mentioned the potential for a sea cucumber fishery,
herring and kelp, and development of a hatchery program at
St. George Island.
CHAIRMAN WILLIAMS noted Representatives Mulder and Green had
joined the meeting.
MR. ROSIER continued his overview with discussion of the
Yukon Initiative, and hatchery development in the interior,
as well as development of the Community Development Quotas
(CDQs). The CDQs would open up economic development in
depressed communities through fisheries programs. He
reported that in its first month, December, 1992, the CDQ
program had generated $20 million in revenue for
participating communities.
MR. ROSIER commented that the ADF&G was looking to expand
virtually every sport fishery in the state, because this was
increasingly a strong revenue source for the state. Related
to this growth has been an increase in the numbers of
lodges, particularly in Cook Inlet. Other areas of major
emphasis were in the user-pay arena, such as the king salmon
stamp program, which was anticipated to bring in an
estimated $2.7 million. The program was to support king
salmon research, management, and enhancement. There would
also be an increase in sport fishing license fees, he noted.
Non-consumptive programs to bring in user-pay revenue
included a proposed conservation wildlife tag fee.
Legislation for that program failed last year, but Mr.
Rosier hoped such legislation could be passed during this
legislative session.
Number 548
MR. ROSIER mentioned the ADF&G's efforts to reach a treaty
between the U.S. and Canada regarding fisheries access.
This treaty had been a high priority of the ADF&G, he
explained. Other important issues included subsistence and
commercial fishing in Glacier Bay. He said the ADF&G had
been engaged in dialogue with the communities involved in
the face of federal legislation. Other impending federal
legislation was expected to have an impact on management of
Alaska's fish and wildlife, he said. One example was the
re-authorization of the Magnuson Act, the Endangered Species
Act, Marine Mammals Protection Act, and new legislation on
biodiversity.
Number 606
MR. ROSIER discussed the funding sources available to the
ADF&G. He touched on changes in general fund support, which
was decreased about 14% from 1985 to the 1994 fiscal year,
in actual dollars. With inflation, he explained this
translated to about a 30-40% reduction. For 1993-94, he
said the ADF&G was looking at a 5.6% decrease, which
resulted in a decrease in the ADF&G's flexibility to react
to unanticipated management scenarios. He referred to the
coho fishery as an example, where programs have had to be
discontinued for lack of funding.
TAPE 93-6, SIDE B
Number 000
MR. ROSIER addressed the issue of hatchery closures related
to the FY 94 budget cuts. Four hatcheries were slated for
closure, including Crooked Creek, Big Lake, Klawock, and
Deer Mountain. Other hatcheries were slated for full
transfer to the private sector, he added. Three facilities
were under the reorganization of the two fisheries'
divisions, and would be transferred to the Division of Sport
Fish. Four remaining facilities would stay in the
department, including Snettisham, Crystal Lake, Clear, and a
facility near Kotzebue. Eventually, he anticipated more
hatcheries would be transferred to the private sector.
Number 143
MR. ROSIER commented on commercial fisheries issues related
to the Magnuson Act. Shellfish fisheries in the Bering Sea
continue to be operated under that act, he explained, and
added there had been tremendous growth in that fishery.
Regarding groundfish, he said there was an increasing
capacity for harvesting those fish. Some larger vessels
have switched from groundfish to shellfish, he said, which
has increased competition in the Bering Sea. The Board of
Fish has been looking into setting pot limits for the
current season. He said the Secretary of Commerce found
against the Board, citing discrimination against larger
vessels.
MR. ROSIER told the committee the Division of Commercial
Fisheries had redirected funds to the CDQ program and to on-
shore/off-shore fisheries. The ADF&G was working with the
Department of Community and Regional Affairs on these
projects, he said. He believed it would be to the state's
benefit for the ADF&G to monitor the programs. He also
noted a substantial amount of the Division of Sport Fish's
funding into in-season management, as well as to the
Division of Boards, going through the implementation of the
new subsistence law passed in the 1992 special session.
Number 250
RON SOMERVILLE, DEPUTY COMMISSIONER, ADF&G, displayed graphs
for the committee, and referred them to hand-outs in their
files that showed the ADF&G's fiscal background. The
general fund portion of the budget comprised about 46%. In
1985 it made up 68% of the ADF&G's total budget. He
described the ADF&G's other revenue sources and how they
were used within the ADF&G's budget. He told members the
information he referred to in graphs was contained in their
bill files.
Number 351
REPRESENTATIVE JOE GREEN raised a question about the costs
for hatchery operations versus revenues from licensing, and
asked if those expenses and revenues balanced out.
Number 355
MR. ROSIER replied that revenues and expenses were about
even.
Number 371
REPRESENTATIVE CON BUNDE expressed a concern with the use of
the term "non-consumptive use" in reference to Alaska's
wildlife resources. He hoped a more accurate and acceptable
term could be found. He referred to a conservation tag
program, but noted such programs had failed in other states.
He favored the privatization of hatcheries, and asked for
clarification on which type of hatchery would remain in
state operation.
MR. ROSIER said those facilities the state would continue to
operate would be directed toward the sport fisheries. He
explained the ADF&G's intention was to eventually turn those
over to the private non-profit sector also.
REPRESENTATIVE BUNDE shared his concerns with allotments and
the new king salmon tag. He doubted that program would
produce much revenue.
CHAIRMAN WILLIAMS asked that given the time constraints of
the meeting, members limit their questions to one.
Number 423
REPRESENTATIVE CLIFF DAVIDSON noted that 40,000 or more
Alaskans relied on fisheries' resources for their
livelihoods. He suggested the ADF&G prepare graphics
showing the value of fish and game resources in Alaska,
compared to that of other states, and what the other states
spent to manage those resources compared to what Alaska
spent. He suggested such a graph might show how
inadequately Alaska funded the management of its fish and
game resources. Referring to the state's rush to turn over
hatchery programs to the private non-profit sector, he was
concerned the state would lose technical and management
control of the resources. He noted some of the private non-
profits had offered to assume the costs of keeping state
technicians on board, but that plan had been rejected. He
asked Mr. Rosier to comment on that situation.
Number 454
MR. ROSIER acknowledged the state and private sector have
maintained a good relationship, and said the private
hatcheries should have a strong voice in personnel,
operations and standards.
REPRESENTATIVE DAVIDSON reiterated his concern that the
state might lose its oversight to protect the resources.
Number 476
MR. ROSIER stressed that the ADF&G would continue to be a
participant in monitoring the programs. He said state fish
and game employees would be in the hatcheries in a
monitoring and technical advisory capacity, but the state
would not be operating the hatcheries.
Number 496
REPRESENTATIVE ELDON MULDER asked where funds would be spent
from the king salmon stamp program.
MR. ROSIER responded that a number of programs statewide
would benefit from the program, with the goal of improved
information and data bases to support management and
enhancement of king salmon. Regarding habitat restoration
programs on the Kenai, he said the ADF&G had the funding to
operate the programs for this year (1993).
Number 518
REPRESENTATIVE IRENE NICHOLIA asked for an explanation of
the impact of the merger of the FRED division with the
Division of Commercial Fisheries, and its effect on
commercial fisheries throughout Alaska.
Number 549
MR. ROSIER said there would be no effect on commercial
fisheries' functions. He said the basic functions that have
been performed by FRED would continue to be retained.
Number 565
REPRESENTATIVE JOHN DAVIES requested a written overview of
that issue. Regarding the commercial hatcheries, he asked
for a definition of the state's regulatory control in such
areas as genetics and disease control.
MR. ROSIER responded that the ADF&G had the means to
regulate those areas, through an extensive review process.
Number 579
CHAIRMAN WILLIAMS noted the committee would hold a hearing
on Executive Order 86 on January 29. He then asked Mr.
Rosier what the legislature could do to facilitate the
treaty. He also asked the commissioner to comment on the
hatcheries in the Ketchikan area, and how they might affect
the treaty.
MR. ROSIER, in terms of what the legislature could do, noted
fishing groups had been pushing hard for the maintenance of
traditional fisheries. Legislative support for those
positions was important, he said. Part of the reason for
maintaining Crystal Lake and Snettisham, was that those
programs were aimed at providing additional fish. Hatchery
fish were excluded from the cap, he explained. The
recreational fishery, he said, was a major beneficiary of
the hatchery production. He said the department was trying
to find a balance of programs to support both recreational
and commercial fishing.
MR. ROSIER said the charter boat industry and traditional
Alaskan sports fishermen were increasing the pressure on the
fisheries, particularly king salmon stocks. There might not
be sufficient resources to give the commercial fishery more
king salmon in the short run, he said. The power troll
fishery wanted to extend their season, and that issue would
be examined by the Board of Fisheries, he added.
Number 639
CHAIRMAN WILLIAMS raised the issue of transient king salmon
stocks, as that issue related to the impending treaty
between the U.S. and Canada. He wished to see the ADF&G
assure sufficient numbers of biologists in the field, to
help balance the demands by the various fishery interests.
Specifically, he was concerned with the King Salmon and
Noise Island fisheries, and said these had seen low
harvests.
Number 667
VICE CHAIRMAN BILL HUDSON commented on the Northern Panel,
which met last year on the U.S.-Canada treaty. He suggested
the Alaska legislature be included in the representation on
that panel. He noted the issue was both complicated and
politically charged, and that the lower 48 states had not
joined forces with Alaska.
REPRESENTATIVE GREEN remarked on the question of the ADF&G's
dropping the monitoring of the coho fisheries. He commented
on the cyclical nature of catch levels and populations of
various species. He asked if there might be any adverse
effect on the habitat, specifically on fish eggs that were
laid before.
MR. ROSIER noted that coho had been a hardy species, but one
that fluctuated widely.
TAPE 93-7, SIDE A
Number 000
MR. ROSIER continued his comments on the coho fishery,
remarking on the pressure on the fishery.
REPRESENTATIVE GREEN asked Mr. Rosier to comment on the
problem of the spruce bark beetle infestation in areas near
spawning areas. Specifically, he asked whether the ADF&G
had any plans to avoid adverse run-off in those areas when
the affected trees die and fall.
MR. ROSIER answered that the ADF&G had been involved in that
process.
CHAIRMAN WILLIAMS then asked how the ADF&G wanted to handle
requests for information from legislators.
MR. ROSIER replied that Geron Bruce and Ron Somerville were
the key legislative liaisons for the ADF&G.
Number 063
VICE CHAIR HUDSON said he had a number of questions
pertaining to various programs of the ADF&G, which he would
present in writing to the ADF&G for their response.
Number 114
REPRESENTATIVE BUNDE offered another question for response
in writing at a later time. He asked how increased license
fees would affect the overall budget.
Number 135
ROBERT CLASBY, ACTING DIRECTOR, DIVISION OF COMMERCIAL
FISHERIES, ADF&G, told the committee members he had provided
them with two documents in their files, including an
Executive Summary of a Fisheries Industry Sector Report. He
said that document provided good facts and information on
the economic past and current conditions of the industry.
The other document, he pointed out, was the FY 94 overview
of the Division of Commercial Fisheries' budgets and
programs.
MR. CLASBY briefly described the responsibilities of the
division. They were charged, he explained, with the
management of the state's subsistence fisheries and all
personal use fisheries that occurred in marine waters. The
goal of the Division was to manage all the fisheries to
optimize production of fisheries resources. Production of
sufficient product to meet the demand of both commercial and
subsistence users was a primary goal. He listed the various
species for which commercial fisheries management existed in
the ADF&G.
MR. CLASBY said the Division had individual fishery units,
which were single management units based on species, gear,
location or use. In Southeast, he said, there were 32
different fishery units; in Kodiak there were 60 herring
units, and in Cook Inlet, there were 20 different shellfish
units. The fisheries were managed through the collection of
information, assessment, and identification of goals. The
Division then established management plans and in-season
management plans based on the anticipated harvest.
Dissemination of information was another function of the
Division.
MR. CLASBY noted there were 24 regional and area offices
throughout the state, 80 data collection field camps, and 15
large applied research vessels. He also noted the Division
employed 212 permanent full-time staff, 414 seasonal staff,
and 16 temporary staff.
Number 248
NORVAL NETSCH, DIRECTOR, DIVISION OF SPORT FISHERIES, ADF&G,
passed out an updated description of the Division to add to
materials in the members' files. The Division's major
responsibilities were described in the materials, he
explained. Much of the Division's operation was similar to
the Division of Commercial Fisheries, he said. The Division
worked closely with the other divisions in the ADF&G in
administering its programs, he added. One unique aspect of
the Division of Sport Fisheries, he commented, was that it
was strictly a user-pay program. All funding came from
sports fishermen and recreational boaters.
Number 288
REPRESENTATIVE BUNDE referred to the mixed stock fisheries
in his district, and expressed concern that there must be
some changes made there.
MR. NETSCH agreed this was a major issue to the Division and
the Board of Fisheries, as well as to the public.
Number 307
ANNOUNCEMENTS
CHAIRMAN WILLIAMS reminded members about a possible tour of
the Greens Creek Mine facility. Regarding members' file for
bills to be heard in committee, he told members that files
would be available at 3 p.m. the afternoon prior to
meetings. He also announced the committee would not meet on
Monday, January 25. The next meeting would be held on
Wednesday, January 27, at 8:00 a.m., with an overview on the
Mental Health Lands Trust settlement, by the Department of
Natural Resources and the Department of Law.
ADJOURNMENT
There being no further business to come before the House
Resources Committee, Chairman Williams adjourned the meeting
at 9:50 a.m.
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