Legislature(1999 - 2000)

02/10/1999 03:10 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
              SENATE RESOURCES COMMITTEE                                                                                        
                  February 10, 1999                                                                                             
                      3:10 P.M.                                                                                                 
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Senator Rick Halford, Chairman                                                                                                  
Senator Pete Kelly                                                                                                              
Senator Lyda Green                                                                                                              
Senator Sean Parnell                                                                                                            
Senator Georgianna Lincoln                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Senator Jerry Mackie                                                                                                            
Senator Robin Taylor                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
SENATE BILL NO. 13                                                                                                              
"An Act relating to assessment of discrete salmon stocks and to                                                                 
discrete salmon stock assessment surcharges."                                                                                   
                                                                                                                                
     -HEARD AND HELD                                                                                                            
                                                                                                                                
PREVIOUS SENATE COMMITTEE ACTION                                                                                                
                                                                                                                                
No previous action to consider.                                                                                                 
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
Mr. Brett Huber, Staff                                                                                                          
Senator Halford                                                                                                                 
State Capitol Bldg.                                                                                                             
Juneau, AK 99801-1182                                                                                                           
POSITION STATEMENT: Commented on SB 13.                                                                                         
                                                                                                                                
Ms. Mary McDowell, Commissioner                                                                                                 
Limited Entry Commission                                                                                                        
Alaska Department of Fish and Game                                                                                              
8800 Glacier Hwy., Ste. 109                                                                                                     
Juneau, AK 99801-8079                                                                                                           
POSITION STATEMENT:                                                                                                             
                                                                                                                                
Mr. Rick Davis                                                                                                                  
United Fishermen of Alaska                                                                                                      
2347 Kevin Court                                                                                                                
Juneau, AK 99801                                                                                                                
POSITION STATEMENT: Opposed SB 13.                                                                                              
                                                                                                                                
Mr. Dick Bishop                                                                                                                 
Alaska Outdoor Council                                                                                                          
P.O. Box 73902                                                                                                                  
Fairbanks, AK 99709                                                                                                             
POSITION STATEMENT: Supported SB 13.                                                                                            
                                                                                                                                
Mr. Bruce Knowles                                                                                                               
P.O. Box 873206                                                                                                                 
Wasilla AK 99687                                                                                                                
POSITION STATEMENT: Supported SB 13.                                                                                            
                                                                                                                                
Mr. Geron Bruce, Legislative Liaison                                                                                            
Alaska Department of Fish and Game                                                                                              
P.O. Box 25526                                                                                                                  
Juneau, AK 99802-5526                                                                                                           
POSITION STATEMENT: Commented on SB 13.                                                                                         
                                                                                                                                
Mr. Dale Bondurant                                                                                                              
31864 Moonshine                                                                                                                 
Soldotna, AK 99669                                                                                                              
POSITION STATEMENT: Supported SB 13.                                                                                            
                                                                                                                                
Ms. Nancy Hillstrand                                                                                                            
P.O. Box 170                                                                                                                    
Homer, AK 99603                                                                                                                 
POSITION STATEMENT: Supported SB 13.                                                                                            
                                                                                                                                
Mr. John Merrigan                                                                                                               
Petersburg Vessel Owners Association                                                                                            
P.O. Box 232                                                                                                                    
Petersburg, AK 99833                                                                                                            
POSITION STATEMENT: Opposed SB 13.                                                                                              
                                                                                                                                
Mr. Cliff Judkins, President                                                                                                    
Alaska Boaters Association                                                                                                      
P.O. Box 874124                                                                                                                 
Wasilla, AK 99687                                                                                                               
POSITION STATEMENT: Supported SB 13.                                                                                            
                                                                                                                                
Mr. John Peckham                                                                                                                
P.O. Box 8394                                                                                                                   
Ketchikan, AK 99901                                                                                                             
POSITION STATEMENT: Opposed SB 13.                                                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-9, SIDE A                                                                                                               
Number 001                                                                                                                      
                                                                                                                                
        SB 13-DISCRETE SALMON STOCK MGMT AND ASSESSMENT                                                                         
                                                                                                                                
CHAIRMAN HALFORD called the Senate Resources Committee meeting to                                                               
order at 3:10 p.m. and announced SB 13 to be up for consideration.                                                              
                                                                                                                                
MR. BRETT HUBER, Committee Aide, explained that although fishery                                                                
management in Alaska has been successful over time in providing for                                                             
an abundance of harvestable salmon on a state-wide basis, record                                                                
catches alone don't ensure that we are fulfilling our                                                                           
constitutional mandate for sustained yield.                                                                                     
                                                                                                                                
This bill is different than last year's discrete stock management                                                               
bill.  It doesn't mandate the Board of Fisheries to adopt and                                                                   
implement discrete stock management in prescribed areas along                                                                   
specified time lines.  Instead, SB 13 mandates discrete salmon                                                                  
stock assessment, leaving to the Board of Fisheries the                                                                         
determination of which stocks are appropriate by applying criteria                                                              
such as biological health of the stock and the magnitude of user                                                                
conflicts.                                                                                                                      
                                                                                                                                
MR. HUBER said that far too much of our fisheries management is                                                                 
being driven by allocation battles in our most contentious                                                                      
fisheries instead of by sound science and pertinent information.                                                                
The lack of information brings the same issues before the Board                                                                 
year after year, leaving the issues unresolved and the user groups                                                              
unsatisfied.  This bill mandates discrete stock assessment that                                                                 
will allow the Board to target research on stocks in the fisheries                                                              
for which they most need the information.                                                                                       
                                                                                                                                
MR. HUBER briefed the committee saying that Section 1(a) sets out                                                               
the purpose of the bill to establish a discrete stock assessment                                                                
program and provide a funding mechanism.  Additional language                                                                   
clarifies that this program is not intended to impact the                                                                       
Department's base program.  Section 1(b) specifies that a portion                                                               
of the cost of the discrete stock assessment program will be paid                                                               
by Sport Fish license revenues equivalent to $1 for each sport fish                                                             
license sold.  Section 2(a) delineates the Board's responsibility                                                               
to determine the stocks for which discrete stock assessment is                                                                  
appropriate and sets out the criteria to be considered in the                                                                   
determination.  Section 2(b)(1) delineates the development of the                                                               
annual list of discrete stock assessment projects and sets out the                                                              
criteria for the projects.  Section 2(b)(2)provides opportunity for                                                             
public comment on the project list.  Section 2(b)(3) provides that                                                              
the proposed project lists and corresponding costs be submitted to                                                              
the governor for inclusion in the Department's budget for the                                                                   
following fiscal year.  Section 2(c) requires the governor to                                                                   
include the discrete stock assessment program in a separate BRU in                                                              
the Department's budget.  Section 3 levies a $10 surcharge on                                                                   
commercial fishing crew member licenses for the discrete stock                                                                  
assessment program.  Section 4 was language proposed by drafters to                                                             
parallel the surcharge language with the existing statutes                                                                      
governing CFEC. permits.                                                                                                        
                                                                                                                                
He noted that the Limited Entry Commission has a proposed amendment                                                             
to delete this Section as well as lines 27 - 30 in Section 6.                                                                   
                                                                                                                                
Section 6 requires the CFEC to collect a surcharge on limited entry                                                             
permits and interim use permits totaling $500,000 for the discrete                                                              
stock assessment program.  Section 7 provides the initial discrete                                                              
stock assessment list be prepared for submission in the FY01 budget                                                             
and the license surcharges begin in calendar year 2000.                                                                         
                                                                                                                                
Number 90                                                                                                                       
                                                                                                                                
SENATOR PARNELL asked what the policy reason was for the $10                                                                    
surcharge on the crew member fishing license.                                                                                   
                                                                                                                                
MR. HUBER responded that the Department tried to apportion the cost                                                             
across the users by determining what kinds of programs would be                                                                 
included in this list and what the potential benefit would be to                                                                
user groups.  He said the Department would explain how the benefits                                                             
of the programs and the data gathering has to be commensurate with                                                              
the level of benefit to the user groups when dealing with federal                                                               
or ADF&G funds.                                                                                                                 
                                                                                                                                
MS. MARY MCDOWELL, CFEC Commissioner, explained that their                                                                      
amendment requests them to delete the provision on lines 27 - 30 on                                                             
page 3 which directs the Entry Commission to credit the $10 stock                                                               
assessment surcharge that fishermen have paid on a crew license                                                                 
toward the stock assessment surcharge that persons would be charged                                                             
if they obtained a limited entry permit or interim use permit later                                                             
that same year.  This was a new provision in the bill that the                                                                  
drafter inserted in an effort to be consistent with another                                                                     
provision in current law calling for credit of the fee paid for a                                                               
crew license against the annual fee paid for a permit, if a person                                                              
should happen to buy a crew license and then subsequently acquire                                                               
a permit in the same year.                                                                                                      
                                                                                                                                
The Entry Commission is in the process of drafting some                                                                         
housekeeping legislation which proposes to delete that existing                                                                 
credit provision along with cleaning up some other language in                                                                  
existing licensing statutes which have become obsolete,                                                                         
inconsistent, or unclear.                                                                                                       
                                                                                                                                
MS. MCDOWELL explained that under current law, a limited entry or                                                               
interim use permit in any fishery may be used by the holder to                                                                  
participate in any fishery in Alaska as a crew member.  This                                                                    
allowance is widely known and used by fishermen.  No fisherman has                                                              
ever requested a credit under the crew license fee credit that is                                                               
in current law.  This is the provision the drafter intended the new                                                             
credit incentive to mirror.                                                                                                     
                                                                                                                                
Likewise, the new surcharge credit provision in SB 13 would provide                                                             
little or no benefit to the public, and yet the requirement for                                                                 
CFEC to go through the motions of trying to implement and                                                                       
administer it would take considerable time and resources.  They                                                                 
would have to try and match incompatible crew and permit data files                                                             
of the Entry Commission with those of ADF&G in an effort to find                                                                
any possible instances of eligibility for the $10 credit.  In fact,                                                             
because vendors don't turn in records immediately, the necessary                                                                
crew license data from ADF&G isn't even compiled until a month                                                                  
after the end of the year in which CFEC would be required to grant                                                              
the credit.                                                                                                                     
                                                                                                                                
MS. MCDOWELL concluded by asking the committee to delete the                                                                    
surcharge credit because it is not practicable or necessary.                                                                    
                                                                                                                                
Number 161                                                                                                                      
                                                                                                                                
MR. RICH DAVIS, United Fishermen of Alaska, said they have tracked                                                              
the discrete stock management bill and oppose it now.  UFA is not                                                               
comfortable with an increase in license fees to conduct work they                                                               
feel benefits everyone in the State whether they fish or not.                                                                   
Other work that needs to be done in the State, such as assessment                                                               
of water flows and instream flow quantities, could be the next item                                                             
if the Legislature chose to charge the fishing industry for every                                                               
aspect of what the ADF&G does for their management.                                                                             
                                                                                                                                
MR. DAVIS said he also has the written comments of the United                                                                   
Southeast Alaska Gillnetters who can't be here.                                                                                 
                                                                                                                                
MR. DICK BISHOP, Alaska Outdoor Council (AOC), supported SB 13.                                                                 
They think it's important for the Department to implement plans                                                                 
that will address problems of inadequate returns in salmon stocks                                                               
and believe the discrete stock assessment work will be a step                                                                   
forward in that regard.                                                                                                         
                                                                                                                                
MR. BISHOP said that the AOC is taking a more active role in                                                                    
fisheries work (mostly upper Cook Inlet) and have formed a                                                                      
fisheries committee with former commissioner of ADF&G, Carl Rosier.                                                             
                                                                                                                                
Number 224                                                                                                                      
                                                                                                                                
MR. BRUCE KNOWLES, Wasilla resident, supported SB 13 completely.                                                                
He didn't think it could be implemented too soon especially in Cook                                                             
Inlet.  Whenever he asks the Department why certain things can't be                                                             
done, the standard comment is, "We don't have the data."  He said                                                               
many streams up there are suffering from low returns of chum                                                                    
salmon.  There were concerns for pink salmon until last year when                                                               
there was a healthy return.  Chum salmon on the McNeil River are so                                                             
low that they are having concerns for the health of the bear stocks                                                             
around the river, their major food source.  He would contribute                                                                 
from his permanent fund dividend for this and volunteered to help                                                               
any way he could.                                                                                                               
                                                                                                                                
MR. GERON BRUCE, ADF&G, said the Department understands that this                                                               
bill sets aside a pot of money that could be used on a                                                                          
discretionary basis to address research needs of stocks with                                                                    
special or high concern.  This is a good idea and they support it.                                                              
                                                                                                                                
He explained that the Department's commercial fisheries management                                                              
program is primarily supported by general funds.  There haven't                                                                 
been any discretionary funds in that program for some time to                                                                   
conduct this kind of research.  Most of their funds are committed                                                               
to maintaining the core in-season management program.                                                                           
                                                                                                                                
The Division of Sport Fish also plays a major role in the salmon                                                                
management of the State, but their funding sources have some                                                                    
restrictions on what they can be used for - both the federal aid                                                                
funds and the ADF&G funds.  In addition, the sport fishery has been                                                             
growing very rapidly in the State and the Division is tasked just                                                               
to keep up with that growth.                                                                                                    
                                                                                                                                
MR. BRUCE said that this bill sets out a process involving the                                                                  
Board of Fisheries in setting broad goals identifying stocks that                                                               
they believe they have insufficient information on.  This process                                                               
occurs with the consultation of the Department and allows an                                                                    
opportunity for the public to be involved.  This would probably                                                                 
bring in some groups that have not participated in the past, a                                                                  
positive element.                                                                                                               
                                                                                                                                
The next step would fall to the Department to develop research                                                                  
projects that would address the needs for additional information                                                                
for the stocks the Board has identified.  This is a good process;                                                               
it keeps the Department in charge of the scientific research and                                                                
data collection.                                                                                                                
                                                                                                                                
Their overriding concern with the funding is that the salmon                                                                    
program, at least in the Division of Commercial Fisheries, is                                                                   
primarily dependent upon general funds (GF) which have been                                                                     
declining and may continue to do so.  Therefore, he requested                                                                   
additional funds raised by this bill be designated in statute as                                                                
"designated program receipts" which takes them out of the general                                                               
fund category and puts them into a nongeneral fund category so                                                                  
there is no confusion down the line.  When these projects are                                                                   
submitted as part of the Department's budget it represents an                                                                   
increase in general funding from non-recurring revenue sources.  It                                                             
is intended that these projects would be paid for by the users.                                                                 
Making the funds designated program receipts is very consistent and                                                             
recognizes that these are recurring revenues and would not appear                                                               
as a budget increment which would result in a cut in some other                                                                 
element of the Division's program, a worst-case fear.  In addition                                                              
to program receipts, it could be some sort of continuing capital                                                                
improvement project (CIP).                                                                                                      
                                                                                                                                
MR. BRUCE said they are very aware and sensitive to the fact that                                                               
the users pay the cost of management.  In the case of the Division                                                              
of Sport Fish, there is no general fund.  It's all user fees.  The                                                              
Division of Commercial Fisheries (DCF) has a significant general                                                                
fund component, but the various taxes and license fees the industry                                                             
pays are more than double the entire GF element of the DCF budget.                                                              
The users are already paying and sometimes the general public                                                                   
doesn't realize this.                                                                                                           
                                                                                                                                
One other concern is the additional stock assessment projects would                                                             
be included in the Governor's budget and it would look like he is                                                               
asking for an increment or he would have to cut something else out                                                              
of the base programs.  MR. BRUCE said he couldn't suggest an                                                                    
alternative.                                                                                                                    
                                                                                                                                
Number 359                                                                                                                      
                                                                                                                                
SENATOR PARNELL asked where the license fees go now.                                                                            
                                                                                                                                
MR. BRUCE answered that a portion of them go into the general fund                                                              
and a portion of them go into the fishermen's insurance fund.                                                                   
                                                                                                                                
SENATOR PETE KELLY commented that he thought designated program                                                                 
receipts were one-time contributions to the general fund.                                                                       
                                                                                                                                
MR. BRUCE explained there are a number of different designated                                                                  
program receipts; test fishery funds are not a designated program                                                               
receipt, but they are named in statute as a non-GF source of funds,                                                             
a recurring source of funds.  It's an item that the Legislature                                                                 
appropriates and provides authority for the Department to receive,                                                              
but it is an on-going source of funds that is built into the                                                                    
Department's budget.  Essentially the resources pay for certain                                                                 
management activities.                                                                                                          
                                                                                                                                
SENATOR PARNELL asked what the Department would actually do with                                                                
the discrete stock assessment information.                                                                                      
                                                                                                                                
MR. BRUCE explained that it would be provided to the Board and                                                                  
would be used to develop better estimates of where the special                                                                  
stocks are harvested, establish levels of escapement, set up weirs                                                              
and sonars, do genetic stock identification work, and sample                                                                    
catches in fisheries.  It could be used for the range of things                                                                 
specified in the bill.                                                                                                          
                                                                                                                                
SENATOR PARNELL asked if the Administration supported SB 13.                                                                    
                                                                                                                                
MR. BRUCE answered they support putting together a discretionary                                                                
source of funds that could be used to address these stocks.  They                                                               
support and recognize the need for additional research on stocks of                                                             
high concern in the State.  They support the process of working                                                                 
with the Board, the public, and the Department.  They are still                                                                 
concerned with the exact funding mechanism and how that would work.                                                             
                                                                                                                                
SENATOR PARNELL asked if this was consistent with their                                                                         
constitutional mandate.                                                                                                         
                                                                                                                                
MR. BRUCE replied that it is consistent with their basic mission                                                                
and their constitutional charge.  The Department collects this kind                                                             
of information and uses it in its management.                                                                                   
                                                                                                                                
Number 416                                                                                                                      
                                                                                                                                
SENATOR PARNELL asked how they are addressing stocks of high                                                                    
concern now and what other ways are there besides discrete stock                                                                
assessment.                                                                                                                     
                                                                                                                                
MR. BRUCE answered that another way is through CIPs, for example,                                                               
one they got two years ago for work on stocks in upper Cook Inlet.                                                              
The funds will be gone after the end of this year.  If there is no                                                              
additional source of funding, they have to either re-program from                                                               
within existing programs or they don't address it.                                                                              
                                                                                                                                
MR. KEVIN DELANEY, Director, Division of Sport Fish, supported the                                                              
process that would bring the Board, the Department, and the users                                                               
together through the existing Board process.                                                                                    
                                                                                                                                
Last year, at the request of the Resources Committee they looked at                                                             
how much of their program is committed to doing stock escapement                                                                
types of work and it's a considerable part of their budget.  This                                                               
bill adds a chance for more people to get involved in prioritizing                                                              
some segment.                                                                                                                   
                                                                                                                                
SENATOR PARNELL asked what kind of criteria his Division provides                                                               
the Board with in determining which assessments are needed.                                                                     
                                                                                                                                
MR. DELANEY answered that to a large degree it is driven by the                                                                 
issues that come before the Board of Fisheries.  There are the                                                                  
fiscal and realistic constraints of what you can accomplish.  If                                                                
the debate before the Board is centered around consistent                                                                       
restriction of a certain fishery or consistent failure to meet                                                                  
either the escapement objectives or the allocation strategies in                                                                
that location, one of the questions becomes, "What happened, and                                                                
where can you look, and what pot of money do you look at that                                                                   
question with?"                                                                                                                 
                                                                                                                                
SENATOR KELLY asked if a discrete stock would be measured by the                                                                
tributaries of the creek rather than the larger creeks, like the                                                                
Kenai River.                                                                                                                    
                                                                                                                                
MR. DELANEY answered that the term "stock" has a number of useful                                                               
definitions; one is manageable as a unit where they look at the                                                                 
fishery they are talking about and the fish that are passing                                                                    
through at a specific time and place and what actions they can                                                                  
take, what precision they can expect from those actions.  The other                                                             
extreme is where you go into a primary tributary and then off into                                                              
a secondary and tertiary tributary.  There are also scientific                                                                  
definitions of stock based on the genetic structure.                                                                            
                                                                                                                                
SENATOR KELLY asked how they are managing now versus managing for                                                               
discrete stock.                                                                                                                 
                                                                                                                                
MR. DELANEY said that is a hard question, and having sat through                                                                
years and years of Board meetings and hearing many questions, he                                                                
knows there are far more questions out there about what's going on                                                              
with our various fish than we have answers for at any time.  The                                                                
Department's ability is easily exhausted to give specific answers.                                                              
                                                                                                                                
                                                                                                                                
The Department tries to look at where the major fisheries occur and                                                             
at the major stocks that support those fisheries; they look at the                                                              
other stocks that are harvested at the same time those major                                                                    
fisheries are being prosecuted.  Then they look at a series of                                                                  
escapement objectives for the species they have; in many cases they                                                             
have escapement programs for only the major species and perhaps                                                                 
aerial indices programs or some lesser measure of escapement for                                                                
the other species.  Often people ask questions the Department just                                                              
can't answer.                                                                                                                   
                                                                                                                                
SENATOR LINCOLN noted that the bill reads the legislature "may"                                                                 
appropriate the money back and she wanted to know what prevented                                                                
the legislature from saying they don't have enough money to achieve                                                             
their discrete salmon stock goals and to put the money elsewhere.                                                               
She noted the bill proposes to collect money from the already                                                                   
distressed fishermen and maybe that money wouldn't go where it was                                                              
supposed to.                                                                                                                    
                                                                                                                                
CHAIRMAN HALFORD responded that language, "the legislature may,"                                                                
is what is used in every bill from shared taxes on.  It's                                                                       
constitutionally up to the legislature to make the decision of                                                                  
whether it's designated program receipts or general funds.  It is                                                               
exactly the same appropriation process.  Only the accounting                                                                    
process makes the distinction.                                                                                                  
                                                                                                                                
MR. BRUCE said his concern is that this would compete with other                                                                
projects in their budget and because it has this special status, it                                                             
would probably prevail to the detriment of other established                                                                    
projects.  He didn't think it was as likely that the money would go                                                             
completely to another place.                                                                                                    
                                                                                                                                
SENATOR LINCOLN said it wasn't fair to tax fishermen and crew...                                                                
                                                                                                                                
TAPE 99-9, SIDE B                                                                                                               
Number 590                                                                                                                      
                                                                                                                                
who are already having difficulties.  She thought they should get                                                               
the money from other sources.                                                                                                   
                                                                                                                                
MR. BRUCE restated that the Department is very aware and                                                                        
appreciative of the fact that the users have historically paid the                                                              
cost of management - and then some.  They don't want to do anything                                                             
to jeopardize their willingness to do that.                                                                                     
                                                                                                                                
SENATOR PARNELL asked what the benefits of an assessment were to                                                                
sport fishers and commercial fishers.                                                                                           
                                                                                                                                
MR. BRUCE said the benefits to both are somewhat the same - better                                                              
management and better information about stocks that are subject to                                                              
a lot of pressure or that they don't have as much information on                                                                
right now as they would like to, will result in higher yields over                                                              
the long term which means more fish to harvest.  Also, if there is                                                              
some downturn in productivity because of environmental conditions,                                                              
they will be able to detect it soon enough to respond.                                                                          
                                                                                                                                
SENATOR LINCOLN asked why sport fishermen would pay the same fee as                                                             
commercial fishermen.                                                                                                           
                                                                                                                                
CHAIRMAN HALFORD answered that he didn't know why a sport fisherman                                                             
would want to pay so much more per fish than the commercial                                                                     
fisherman is willing to pay, but he knows that they're willing.                                                                 
                                                                                                                                
MR. DALE BONDURANT supported SB 13 and discrete stock assessments,                                                              
especially in the Kenai/Kasilof areas.  In 1987 the commercial                                                                  
harvest was over 9 million fish, but only 66,000 got into the                                                                   
northern district.  In 1992 there was only one million fish and                                                                 
66,000 got there.  Last year, when it was shut down, there were all                                                             
kinds of fish in the northern district.                                                                                         
                                                                                                                                
MS. NANCY HILLSTRAND, Homer, supported assessing discrete salmon                                                                
stocks.  They are already seeing some stress on fish in the lower                                                               
Kenai, Deep Creek, Ninilchik, and the Anchor River.  She is on the                                                              
Fish and Game Advisory Committee and has raised salmon for the past                                                             
18 years.  She said it is critical to maintain genetic diversity.                                                               
She appreciated what they were doing in the legislation, but this                                                               
is only part of the complex puzzle to promote sustainability for                                                                
the long term.  This legislature must seriously address a                                                                       
comprehensive habitat integrity plan to go along with this.  She                                                                
noted that there is major logging going on on the Kenai Peninsula                                                               
with very little protection for the salmon stocks.                                                                              
                                                                                                                                
MS. HILLSTRAND said she had seen the legislature ignore extremely                                                               
crucial pieces of the puzzle that will promote sustainability.                                                                  
                                                                                                                                
Number 476                                                                                                                      
                                                                                                                                
MR. JERRY MERRIGAN, Petersburg Vessel Owners Association, opposed                                                               
SB 13. The problem identified in the bill is lack of data for                                                                   
fisheries management such as stock composition, i.d., escapement,                                                               
assessments, and establishment of escapement goals.  One solution                                                               
that occurs to a number of people is to fund ADF&G at the levels it                                                             
needs for necessary research to carry out its constitutional                                                                    
mandate of full utilization of fisheries under the principles of                                                                
sustained yield.                                                                                                                
                                                                                                                                
This legislation takes the distinctly different approach of taxing                                                              
fishermen in order to fund ADF&G to carry on its constitutional                                                                 
mandate, but only on a few stocks selected by the Board of Fish.                                                                
ADF&G has the capability and expertise to choose its own research                                                               
projects, though funding seems to be the issue.                                                                                 
                                                                                                                                
Presently, the Board of Fisheries can request ADF&G for data or                                                                 
research to generate the data.  This legislation seems to muddy the                                                             
distinction between the Board of Fisheries and the Department of                                                                
Fish and Game.                                                                                                                  
                                                                                                                                
MR. MERRIGAN said that ADF&G supports this bill, but he couldn't                                                                
recall any time an agency would turn down a pot of a million                                                                    
dollars.                                                                                                                        
                                                                                                                                
This bill does not mention discrete stock management; however, the                                                              
end result of utilizing a collection of discrete stock data is                                                                  
discrete stock management.  What else is there to do with it?                                                                   
                                                                                                                                
Escapement goals are generally needed, but he has spent five years                                                              
representing Alaska at the US/Canada Pacific Salmon Treaty and                                                                  
can't recall any successful management for discrete stock or weak                                                               
stock management, at least as conducted in Canada and the lower 48.                                                             
Southeast Alaska fisheries are not conducted on discrete stocks;                                                                
the geography here is numerous small salmon streams with an                                                                     
aggregate of production.  Salmon streams number up to 5,000 and are                                                             
utilized in our mixed stock fishery.  He thought they might be                                                                  
called "indiscrete" stocks.                                                                                                     
                                                                                                                                
Southeast fishermen who have the majority of the permits that will                                                              
be taxed may receive very little benefit from this research.                                                                    
Additionally, Southeast fishermen have already paid for this                                                                    
information in the form of the Pacific Salmon Treaty which forced                                                               
large reductions and restrictions on our fisheries.  But as a part                                                              
of the Treaty, technical committees were set up that compiled the                                                               
same data needs as identified in this bill.  His association would                                                              
support increased fisheries research, but does not feel that this                                                               
legislation is the logical course for that research.                                                                            
                                                                                                                                
MR. MERRIGAN noted that the intent language has revenue coming from                                                             
the Division of Sport Fish, but the statute addresses only                                                                      
commercial fishing.  He noted that Senator Lincoln touched on the                                                               
impacts of taxes and he said that this tax would not break people's                                                             
backs, but unfortunately fishermen do not pay just one tax right                                                                
now.  They are assessed one percent for ASMI, three percent for                                                                 
aquaculture, permit and vessel renewal fees, and an upcoming three                                                              
percent fee in the IFQ fisheries.  This is a poor time to be                                                                    
accelerating taxes.  Commercial fishermen are already paying their                                                              
way in terms of fees collected in State management.                                                                             
                                                                                                                                
MR. CLIFF JUDKINS, President, Alaska Boaters Association, said he                                                               
had been fishing in Cook Inlet streams for 36 years and strongly                                                                
supported SB 13.  Whenever he has asked ADF&G how many fish a                                                                   
stream can handle, he is invariably told they can't say, because                                                                
they don't have data on that species in that stream.                                                                            
                                                                                                                                
MR. JOHN PECKHAM, Ketchikan, said he purse seined for salmon and                                                                
opposed SB 13.  He supported Mr. Merrigan's comments and added that                                                             
ADF&G is widely regarded as very successful at managing salmon and                                                              
he didn't know how successful they could continue to be if their                                                                
funding is continually reduced.  Part of  their job is to do stock                                                              
i.d. and data collection and it doesn't make sense to look at                                                                   
spending more money on things that aren't directly related to their                                                             
core programs.                                                                                                                  
                                                                                                                                
MR. PECKAM said he also participated in the Salmon Treaty and he                                                                
has seen funds available for use by other countries going into                                                                  
determination of allocation issues as opposed to actually improving                                                             
management.  It is frustrating seeing that amount of money going                                                                
into something that really doesn't help the resource; and in the                                                                
end it doesn't really stop the allocation arguments either.                                                                     
                                                                                                                                
In Southeast, his stock of concern is pink salmon, but it doesn't                                                               
have a lot of allocation issues and isn't a real conservation                                                                   
problem.  It could be managed for better quality and more fish, but                                                             
nothing would be spent on it under this bill, because it's not seen                                                             
as a political issue.  So they will be taxed on trying to solve the                                                             
Kenai River's problems.                                                                                                         
                                                                                                                                
MR. PECKAM concluded that we could spend more money on our fish                                                                 
resources and get more money for the State out of our fish                                                                      
resources, but this specific use of a pot of money is not the best                                                              
use of additional funds.                                                                                                        
                                                                                                                                
CHAIRMAN HALFORD thanked everyone for their participation and said                                                              
they would take more testimony at another meeting.  He adjourned at                                                             
4:20 p.m.                                                                                                                       

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