HB 117-COMMERCIAL FISHING; SET GILLNET COOP    [Contains discussion of HB 31.] 10:31:35 AM CHAIR STUTES announced that the first order of business would be HOUSE BILL NO. 117, "An Act relating to commercial set gillnet fishing; and providing for an effective date." 10:31:57 AM MATT GRUENING, Staff, Representative Louise Stutes, Alaska State Legislature, on behalf of Representative Stutes, prime sponsor, introduced HB 117. He said this legislation would preserve the traditional model for salmon setnet operations by continuing to allow small groups (often families in rural Alaska) to work cooperatively, comingle their fish, and allow one permit holder to deliver fish on behalf of their group. He said this bill was brought forward by concerned stakeholders to address a newly applied legal interpretation by law enforcement that has disrupted the way set-net operators have functioned since pre- statehood. The current legal interpretation requires that fish are not comingled and are delivered by each individual permit holder; this legislation would address this interpretation. He remarked that set-netting is unique in Alaska and was Alaska's only commercial shore-based fishery. Historically, fisherman have delivered their fish cooperatively, picked their nets cooperatively, comingled fish, and operated as a group. He said that this model of fishing has existed since statehood. MS. GRUENING said that after a brief presentation, committee members would hear invited testimony about the issues associated with the new legal interpretation. He pointed members to a letter of support from the Northwest Setnetters Association [copy in committee file] because it illustrates the matter of concern. He said that every set-net fishery is different depending on the region and said the new legal interpretation would be particularly burdensome to offroad rural fishermen. He said that in many operations the only option for deliveries is in small skiffs and often travel in rough waters, with limited hold space. Permit holders often include family members who are mending nets or cooking and have always been included as part of the group. He said HB 117 only aims to allow a continuation of set-net operations to participate in the fishery as they always have. He said that language was left intentionally broad to allow law enforcement, the Commercial Fisheries Entry Commission (CFEC), the Alaska Department of Fish & Game (ADF&G), and other stakeholders to have maximum input into how the fish would be delineated. He said that this bill is not only about maintaining the status quo but to support fishing operations in rural communities. He concluded by reiterating that setnetters should be able to work together and maintain their operating methods. 10:36:13 AM CHAIR STUTES announced that the committee would hear invited testimony on HB 117. 10:37:10 AM KEVIN FISCHER, President, Allakaket District Setnetters, gave invited testimony in support of HB 117. He said that he has been a set-net fishermen for 35 years and for the entire time set-net fisherman have comingled fish. He said it is his understanding that set-netting has been this way even before statehood. He did not understand the current upheaval in set- netting practice and the lack of communication with fishermen on this issue. He said HB 117 would allow set-netters to fish as they always have. He said if the new legal interpretation that prevents comingling fish remains then it would negatively impact Alaska fishermen, particularly the small family operations. He said that last year one of the fishermen in his district was issued a felony level citation; the officer did not know the issue; nor did the judge understand the issue well either. He said the court offered a plea deal and dropped it to a misdemeanor and issued a $500 fine. He said that this caused a great deal of concern amongst fishermen in his district. He asked why only one citation was issued when everyone practiced this way and why it was suddenly being enforced now. He asked what happened to warnings prior to citations, he said it feels like an attack on small fishing operations. He said that he was 100 percent confident that if someone said there was an issue then fishermen could have solved it. Issuing a felony level charge is not acceptable and none of his neighbors want to do anything illegal. He said it simply is not viable to separate fish by permit when fishing as a coop. He said that someone, for some reason, thinks that set-net fishing should be different than it has been. 10:40:37 AM ERIC O'BRIAN, representing self, gave invited testimony in support of HB 117. He said that he echoes the previous testifier's comments and concerns. He said that he is part of a multi-generational fishing family. He said the first permit was purchased in 1977 and the second in 1988. He said that his brothers and extended family have always been part of fishing operations. He said in 2002 his parents transferred their permits to the children, and more were purchased later. He said that there were seven permits in total, shared by three grown brothers and three elderly parents. He said they maintain a single-family fishing operation. He said family members all work on the permits. He said that they could not operate without full family support. He said that shore-based support allows participation in the fishery. He said that it is a physically hard season and doesn't always fit with concurrent schedules in the setnet fishery. He said it is not feasible to consider each permit as a separate business, especially given the age of some permit holders. In closing, Mr. O'Brian stated that HB 117 would correct a misinterpretation and allow set- netters to operate as they always have, as a cooperative business venture primarily executed along family lines. 10:44:45 AM ADELIA MYRICK, President, Northwest Setnetters Association, gave invited testimony in support of HB 117. She said that she is a second generation setnetter and currently raising the third generation. She said that the Northwest Setnetters Association supports the bill. Set-netters operate in a fashion that their elders and forefathers taught them, this means mingling fish and operating as a cooperative and often a family unit. She said that the bill would provide the necessary clarification and support set-netters. She said that many setnetters are multi- generational and have a long family history and the bill would allow both youth and elderly alike to participate in the industry. She remarked that keeping youth in the fishery is imperative. She raised concerns about permits exiting the communities and less opportunities overall. She emphasized that Alaska set-netters have among the highest proportions of Alaska resident fishermen and supporting their ability to continue is very healthy for the state. She said that given the current market conditions, setnetters are at the highest risk of extinction. She said that one by one all the smaller processors have shut down and tendering boats are the only option to offload the catch. She remarked that comingling fish can help provide incentives for tendering vessels to continue the purchase and acquisition of set-netter caught fish and a struggling fishery would struggle to attract purchasers. She said that many people who purchase sites often know nothing about set-netting, are "well off" out-of-town folks, and often just look for a remote property to purchase. In conclusion, Ms. Myrick reiterated that the Northwest Setnetter Association supports the bill and the preservation of the status quo. 10:48:54 AM ROBERT MURPHY, Area M Setnetter, gave invited testimony in support of HB 117. He said that this bill would allow set- gillnet family group permit holders to continue "doing what they have done" for years. He said that adopting this bill would have no change on the fishing practices. He remarked that the seafood industry has faced challenges in the past years and if the bill was not adopted then it could have detrimental impacts to set-netters. He said that in his community, salmon fishing is the main source of income. He remarked on the feasibility of adhering to the new legal interpretation and the concerns regarding skiff operation in challenging waters. He urged the legislature to make the corrections to the legal interpretation and support fisherman for the upcoming season. 10:52:39 AM LISA GABRIEL, representing self, gave invited testimony in support of HB 117. She said that her family has been set netting in Cook Inlet for 39 years. They have three permits, one skiff and have always fished as a family group. When fishing on the east side, using one skiff for up to nine nets is common practice. She described the process of collecting fish and loading skiffs for delivery. She said that keeping fish separated is not practical when dealing with lots of fish and a skiff boat. She said that balancing the load on the skiff can be challenging and unsafe when not done appropriately and emphasized that safety is the number one priority. 10:54:40 AM DAVID FLEMING, Setnet Fisherman, gave invited testimony in support of HB 117. He said that he is a third generation set- net fisherman who has multiple family members involved in the fishery. He said that the bill would help families that fish as a unit or partnership. He said that he and his brother both have permits and comingle fish. With regards to the bill, he believes the threshold of permits at 10 is too high and a smaller number would be fair. 10:56:44 AM KIRSTYN STERLING, representing self, gave invited testimony in support of HB 117. She said that her family has two permits, and their sites are approximately two miles from one another. She said that maintaining the status quo is of the upmost importance for safety and young families. She said that set- netting is more accommodating to family groups than drift netting from a boat. She has been raising kids for the last 10 years and during these times a crew swap out was necessary to nurse the babies. She said that offering citations to women on set-net boats who are trying to support their family is wrong. Safety is another concern raised when considering the inability to comingle fish. 10:59:49 AM TRACY WELSH, Executive Director, United Fishermen of Alaska, gave invited testimony in support of HB 117. Speaking on behalf of the United Fisherman of Alaska (UFA), she said that the organizations support the bill concept. She said that several other testifiers had briefed the UFA Board prior to their testimony and sought a legislative fix to the new legal interpretations that prevent comingling fish. 11:01:08 AM REPRESENTATIVE ELAM commented that some Kenai River sportfishing guide affiliates had contacted him regarding concerns about HB 117. He said that they felt it could be handled at the Board of Fisheries level and a legislative fix was not necessary. MR. GRUENING responded that originally a regulatory fix was considered and after consultation it became clear that there was some statutory language that needed to be fixed regarding the unit of gear used. Additionally, he said that the transporter permit required for set-netting would not work well in rural communities due to unit of gear definitions in statute. He said that there is conflicting statutory language and ambiguity, and a legislative fix was appropriate. 11:03:34 AM REPRESENTATIVE VANCE asked how quickly the regulations would be implemented and whether it would be done prior to the next fishing season. MR. GRUENING said that the hope is that work can be done with the Department of Public Safety to place a moratorium on enforcement while the bill works through the implementation process. He noted that the Board of Fisheries will not meet in time to pass regulations unless it makes an agenda change. REPRESENTATIVE VANCE asked if AS 16.05251 was amending the Board of Fisheries regulations. MR. GRUENING said no, it calls on the Board of Fisheries to establish regulations as per the bill, there would still have to be a regulatory process taking place by the board to implement the changes. REPRESENTATIVE VANCE said that while she respects the Board of Fisheries process in adopting regulations, she questions why the legislature could not specify what the department should do to address and expedite the process. MR. GRUENING responded that he thinks this may be a better question for the Department of Public Safety. But it was his understanding that if HB 117 passed, then any citations would not be issued against statute. He said that he did not want to speak on behalf of the Department of Safety, but this was his understanding. He said this bill is an attempt to solve the problem, albeit a first attempt. He said any changes necessary to improve the bill would be considered. REPRESENTATIVE VANCE said the reason she brings this up is that a lot of times the regulations get delayed, and people are left wondering what to do. Any way to avoid this without overriding delegated authority would be good. She said that in areas like mariculture, they are still waiting for regulation. 11:07:56 AM REPRESENTATIVE EDGMON remarked that the committee passed HB 31 which dealt with registration for derelict vessels and in combination with this bill he feels entirely comfortable working with the Department of Public Safety to address Representative Vance's concerns. He said that while he cannot speak on the department's behalf, he felt that it may be happy to understand that it could halt enforcement. He thinks that the department would recognize the intent of HB 125. CHAIR STUTES said that she had a conversation with the Department of Public Safety about this and she said that the department is willing to work with the legislature. 11:09:34 AM REPRESENTATIVE MCCABE commented that this issue seems like farming in the Lower 48. He said that many farmers form coops to harvest together. It is the safest and most efficient means of harvesting. He said that set-netting operates in a similar fashion. He asked "how smart are we" to change the means of delivery. He expressed hope that the Department of Public Safety would recognize this issue and support the fisherman. He said this is a frustrating issue. 11:10:52 AM REPRESENTATIVE KOPP said that as a commercial fisherman, the permit he operates is now in his sons' names and as someone who was raised in the Bristol Bay Fishery, the correlation Representative McCabe made about farming was spot on. He said in his last 13 years set netting in Bristol Bay that he recognizes that these fishermen are multi-family cooperatives. He said that one thing that has not been highlighted well is how dangerous skiffs can be in severe weather. He said that ultimately only one boat makes the run to the tender which can often be miles away and not everybody should take that risk. He said it's a cooperative effort, and it's the way the fishery has always been. The fish are being legally caught, legally sold, and many fishermen effectively police each other. He concluded by commenting that this is common sense legislation. 11:13:07 AM REPRESENTATIVE ELAM said that he agrees that safety is a point of concern. 11:13:30 AM CHAIR STUTES thanked the committee for the unified effort to move the bill forward. She remarked that written testimony could be sent to house.fisheries@akleg.gov and announced that HB 117 was held over.