ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
March 28, 2017
10:02 a.m.
MEMBERS PRESENT
Representative Louise Stutes, Chair
Representative Zach Fansler
Representative Jonathan Kreiss-Tomkins
Representative Geran Tarr
Representative Mike Chenault
Representative David Eastman
Representative Mark Neuman
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CONFIRMATION HEARINGS(S):
Fishermen's Fund Advisory & Appeals Council
Clay Bezenek - Ketchikan
- CONFIRMATION(S) ADVANCED
Board of Fisheries (BOF)
John Jensen - Petersburg
Reed Morisky - Fairbanks
Frederick "Fritz" Johnson - Dillingham
- CONFIRMATION(S) ADVANCED
HOUSE CONCURRENT RESOLUTION NO. 8
Expressing the strong support of the Alaska State Legislature
for the Kodiak Seafood and Marine Science Center; and urging the
University of Alaska to maintain the Kodiak Seafood and Marine
Science Center as an important resource in the state.
- MOVED HCR 8 OUT OF COMMITTEE
HOUSE BILL NO. 76
"An Act relating to the mariculture revolving loan fund and
loans from the fund; and providing for an effective date."
- MOVED CSHB 76(FSH) OUT OF COMMITTEE
HOUSE BILL NO. 128
"An Act relating to management of enhanced stocks of shellfish;
authorizing certain nonprofit organizations to engage in
shellfish enhancement projects; relating to application fees for
salmon hatchery permits; and providing for an effective date."
- SCHEDULED BUT NOT HEARD
HOUSE JOINT RESOLUTION NO. 9
Urging the United States government to continue to work with the
government of Canada to investigate the long-term, region-wide
downstream effects of proposed and existing industrial
development and to develop measures to ensure that state
resources are not harmed by upstream development in British
Columbia.
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: HCR 8
SHORT TITLE: KODIAK SEAFOOD & MARINE SCIENCE CENTER
SPONSOR(s): FISHERIES
03/01/17 (H) READ THE FIRST TIME - REFERRALS
03/01/17 (H) FSH
03/14/17 (H) FSH AT 10:00 AM GRUENBERG 120
03/14/17 (H) -- MEETING CANCELED --
03/28/17 (H) FSH AT 10:00 AM GRUENBERG 120
BILL: HB 76
SHORT TITLE: MARICULTURE REVOLVING LOAN FUND
SPONSOR(s): ORTIZ
01/25/17 (H) READ THE FIRST TIME - REFERRALS
01/25/17 (H) FSH, FIN
03/07/17 (H) FSH AT 10:00 AM GRUENBERG 120
03/07/17 (H) Heard & Held
03/07/17 (H) MINUTE(FSH)
03/14/17 (H) FSH AT 10:00 AM GRUENBERG 120
03/14/17 (H) -- MEETING CANCELED --
03/16/17 (H) FSH AT 10:00 AM GRUENBERG 120
03/16/17 (H) -- MEETING CANCELED --
03/28/17 (H) FSH AT 10:00 AM GRUENBERG 120
WITNESS REGISTER
CLAY BEZENEK, Appointee
Fishermen's Fund Advisory Fund & Appeals Council
Ketchikan, Alaska
POSITION STATEMENT: Testified as appointee to the Fishermen's
Fund Advisory & Appeals Council.
JERRY MCCUNE, Representative
United Fishermen of Alaska (UFA)
Juneau, Alaska
POSITION STATEMENT: Testified in support of Clay Bezenek being
appointed to the Fishermen's Fund Advisory & Appeals Council.
REED MORISKY, Appointee
Alaska Board of Fisheries (BOF)
Fairbanks, Alaska
POSITION STATEMENT: Testified as appointee to the Alaska Board
of Fisheries (BOF).
JOHN JENSEN, Appointee
Alaska Board of Fisheries (BOF)
Petersburg, Alaska
POSITION STATEMENT: Testified as appointee to the Alaska Board
of Fisheries (BOF).
FREDERICK "FRITZ" JOHNSON, Appointee
Alaska Board of Fisheries (BOF)
Dillingham, Alaska
POSITION STATEMENT: Testified as appointee to the Alaska Board
of Fisheries (BOF).
HENRY MITCHELL
Anchorage, Alaska
POSITION STATEMENT: Testified in support of John Jensen and
Fritz Johnson being appointed to the Alaska Board of Fisheries
(BOF).
ED DERSHAM
Anchorage, Alaska
POSITION STATEMENT: Testified support of John Jensen and Reed
Morisky being appointed to the Alaska Board of Fisheries (BOF).
ERNIE WEISS
Anchorage, Alaska
POSITION STATEMENT: Testified in support of John Jensen, Reed
Morisky, and Fritz Johnson being appointed to the Alaska Board
of Fisheries (BOF).
ARNI THOMSON, Representative
Alaska Salmon Alliance (ASA)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of John Jensen, Reed
Morisky, and Fritz Johnson being appointed to the Alaska Board
of Fisheries (BOF).
CHUCK DERRICK, President
Chitna Dip Netters Association
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of Reed Morisky being
appointed to the Alaska Board of Fisheries (BOF).
ORVILLE HUNTINGTON
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of John Jensen, Reed
Morisky, and Fritz Johnson being appointed to the Alaska Board
of Fisheries (BOF).
VERNER WILSON, III, Director
Natural Resources
Bristol Bay Native Association (BBNA)
Dillingham, Alaska
POSITION STATEMENT: Testified with support for the appointment
of Fritz Johnson to the Alaska Board of Fisheries (BOF).
LINDSEY LAYLAND, Deputy Director
United Tribes of Bristol Bay (UTBB)
Dillingham, Alaska
POSITION STATEMENT: Testified with support for the appointment
of Fritz Johnson to the Alaska Board of Fisheries (BOF).
GARY CLINE, Regional Fisheries Director
Bristol Bay Economic Development Corporation (BBEDC)
Dillingham, Alaska
POSITION STATEMENT: Testified with support for the appointment
of Fritz Johnson to the Alaska Board of Fisheries (BOF).
PAUL SHADURA, II
South K Beach Independent Fishermen's Association (SOKI)
Kenai, Alaska
POSITION STATEMENT: Testified in support of John Jensen, Reed
Morisky, and Fritz Johnson being appointed to the Alaska Board
of Fisheries (BOF).
AL BARRETTE
Fairbanks, Alaska
POSITION STATEMENT: Testified with support for Reed Morisky
being appointed to the Alaska Board of Fisheries (BOF), and
opposition to the appointments of John Jensen and Fritz Johnson.
GARY HOLLIER
Kenai, Alaska
POSITION STATEMENT: Testified in support of John Jensen, Reed
Morisky, and Fritz Johnson being appointed to the Alaska Board
of Fisheries (BOF).
SAMANTHA WEINSTEIN, Representative
Southeast Alaska Guide Organization (SEAGO)
Juneau, Alaska
POSITION STATEMENT: Testified in support of John Jensen, Reed
Morisky, and Fritz Johnson being appointed to the Alaska Board
of Fisheries (BOF).
JEFF STEPHAN, Representative
United Fishermen's Marketing Association (UFMA)
Kodiak, Alaska
POSITION STATEMENT: Testified in support of John Jensen, Reed
Morisky, and Fritz Johnson being appointed to the Alaska Board
of Fisheries (BOF).
JERRY MCCUNE, Representative
United Fishermen of Alaska (UFA)
Juneau, Alaska
POSITION STATEMENT: Testified in support of John Jensen, Reed
Morisky, and Fritz Johnson being appointed to the Alaska Board
of Fisheries (BOF).
CLIFF ZAWACKI, Intern
Representative Louise Stutes
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HCR 8, on behalf of the House
Special Committee on Fisheries, sponsor by request, chaired by
Representative Stutes.
JAY STINSON, President
Alaska Research Consortium
Kodiak, Alaska
POSITION STATEMENT: Testified in support of HCR 8.
REPRESENTATIVE DAN ORTIZ
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as the sponsor for HB 76.
ELIZABETH BOLLING, Staff
Representative Dan Ortiz
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained the changes in HB 76, Version T,
on behalf of Representative Ortiz, sponsor.
BRITTENY CIONI-HAYWOOD, Director
Division of Economic Development
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Responded to questions during the hearing
on HB 76.
ACTION NARRATIVE
10:02:53 AM
CHAIR LOUISE STUTES called the House Special Committee on
Fisheries meeting to order at 10:02 a.m. Representatives
Stutes, Tarr, Eastman, Chenault, Fansler, and Kreiss-Tomkins
were present at the call to order. Representative Neuman
arrived as the meeting was in progress.
^CONFIRMATION HEARINGS(S):
^Fishermen's Fund & Appeals Council
CONFIRMATION HEARINGS(S):
Fishermen's Fund Advisory & Appeals Council
10:03:46 AM
CHAIR STUTES announced that the first order of business would be
confirmation hearing(s) for the Fishermen's Fund Advisory Panel
& Appeals Council.
The committee took a brief at-ease at 10:04 a.m.
10:05:54 AM
CLAY BEZENEK, Appointee, Fishermen's Fund Advisory Fund &
Appeals Council, said the first couple of terms on the council
have been enjoyable and he looks forward to continuing service.
Assisting fellow fisherman is very satisfying, he stressed.
The committee took a brief at-ease at 10:07 a.m.
CHAIR STUTES opened public testimony.
10:07:50 AM
JERRY MCCUNE, Representative, United Fishermen of Alaska (UFA),
stated support for the appointment of Mr. Bezenek, and noted the
competent service he has provided in the past.
CHAIR STUTES closed public testimony.
10:08:44 AM
REPRESENTATIVE FANSLER moved to advance the confirmation of the
appointee to a joint session of the House and Senate for
consideration. He noted that each member's signature on the
committee's report in no way reflects the member's vote during
the joint floor session. There being no objection, the
confirmation was advanced.
^Alaska Board of Fisheries (BOF)
Alaska Board of Fisheries (BOF)
10:09:06 AM
CHAIR STUTES announced that the next order of business would be
confirmation hearings for the Alaska Board of Fisheries (BOF).
10:09:46 AM
REED MORISKY, Appointee, Alaska Board of Fisheries (BOF), said
serving on the board has been an honor, as well as a major
responsibility. The board is heavily relied upon by fishermen
for fair governance of allocations and fishery regulations. The
state is unique in the way the board is configured and assisting
residents to have access to the board process is an important
part of the work, he said. Finally, he expressed interest in
continuing to work towards solutions to the current and future
fisheries issues.
The committee took a brief at-ease at 10:10 a.m.
10:10:47 AM
REPRESENTATIVE CHENAULT asked about changing the board process
from a three year to a five year process.
MR. MORISKY responded that going to a five year cycle may have
some benefits, and it has been discussed as a cost saving
measure. The five year cycle is considered to be a length that
doesn't serve the fishing demands, but it has been argued as a
means to bring stability to the process.
REPRESENTATIVE CHENAULT said focus on the cost saving aspect is
helpful, and he noted that most fish life cycles aren't
completed in three years. He said, "My concern is, is that
we're continually making changes to a program when we don't have
the actual results of what the effects of any change may be in a
short three year cycle." He expressed his intent to ask each of
the appointees for an opinion on this situation, and said he has
proposed a bill addressing this point.
10:14:01 AM
JOHN JENSEN, Appointee, Alaska Board of Fisheries (BOF), said
that as a third generation fisherman, he has participated in the
majority of the fisheries statewide, save the dive fishery. He
expressed support for the two other appointees, Reed Morisky and
Fritz Johnson, to continue service on the board. Finally, he
said he has two sons who also fish.
10:15:15 AM
REPRESENTATIVE EASTMAN asked about the candidate's familiarity
with the criteria for residents to obtain fish for personal use
and asked how he weights that harvest.
MR. JENSEN said the personal use fishery is a high priority.
REPRESENTATIVE EASTMAN questioned how Matanuska-Susitna
residents might go about pursuing a personal use fishery.
MR. JENSEN said there are a number of methods and means,
including dip netting.
REPRESENTATIVE EASTMAN recalled that in 2014 the board
instituted a conservation corridor. Recently the corridor has
undergone some policy changes affecting streams in the Susitna
drainage. He asked how the allocation criteria was applied by
the candidate regarding the corridor when the topic was brought
to the board.
MR. JENSEN noted that several Susitna drainage stocks are having
trouble meeting escapement goals. The importance of the
fisheries to the area are understood, and the area biologist has
reported that the central corridor may be opened on the north
end this year, to provide an opportunity for personal use
fishermen to harvest fish.
REPRESENTATIVE EASTMAN noted that 15 stocks of concern have been
identified, and asked how many are located in the Susitna
drainage.
MR. JENSEN estimated 12.
REPRESENTATIVE EASTMAN asked if the policy change regarding the
conservation corridor will affect the Susitna drainage stocks of
concern.
MR. JENSEN said escapement will need to be attained, and a
fishery will not be opened if escapement goals aren't being met.
A commercial fishery exists on the north end, also, he noted.
REPRESENTATIVE EASTMAN asked if the BOF addressed the stocks of
concern at the most recent meeting.
MR. JENSEN said each stock of concern has an action plan, which
is actively being managed. An effort is being made to provide
harvest opportunities without risking the viability of a stock.
10:23:24 AM
REPRESENTATIVE CHENAULT asked about changing the board meetings
to convene in a five year versus the historic three year cycle.
MR. JENSEN said one result would be having to manage the
fisheries by invoking emergency petitions and through agenda
change requests. There could be a savings to the state, which
would be the upside, he agreed.
REPRESENTATIVE CHENAULT asked how a fish species that has a
biological four, five, or six year cycle can effectively be
managed in a three year board cycle, and whether the decisions
made can be appropriately aligned.
MR. JENSEN responded that the board receives actionable,
biological information from the Alaska Department of Fish & Game
(ADF&G), for consideration.
10:25:29 AM
REPRESENTATIVE NEUMAN asked whether the economic value of a
fishery is considered when prioritizing stock allocations.
MR. JENSEN said all the information is taken into consideration
and the value of different fisheries is routinely brought up as
an issue at the board meetings.
REPRESENTATIVE NEUMAN noted that the Northern Cook Inlet has 8
of 12 stocks of concern, and asked what might have caused that
situation.
MR. JENSEN responded that many variables have been cited, which
include pike predation and beaver activity.
REPRESENTATIVE NEUMAN suggested that getting more spawning fish
to the beds could be helpful to mitigate the problem.
MR. JENSEN said the action plan for a given stock of concern may
call include efforts to increase the number of spawning fish.
However, habitat degradation is also an on-going issue, as well
as the need to remove the invasive pike species.
REPRESENTATIVE NEUMAN said he lives in the immediate area and
hasn't noted the presence of beaver dams in personal
observations. He asked for the source of that information.
MR. JENSEN replied that information on beavers has been received
anecdotally, via the board hearing process, as well as from
ADF&G.
REPRESENTATIVE NEUMAN reported that some Canadians have
expressed concern that the out migrating smolt are not receiving
sufficient nutrients in the tributary waters where they
incubate, and thus lack the strength to survive in the open
ocean.
MR. JENSEN acknowledged that smolt viability has been a concern
and that the out migrants have been rated as being small.
REPRESENTATIVE NEUMAN said the Eastern Pacific biomass is at
about 20 percent of normal for non-targeted species, and asked
if that is an issue being addressed.
MR. JENSEN agreed that the ocean predation on the out-migrating
smolt is high and on the rise. At one time there was a ten year
cycle of predator numbers building up then dissipating, but it
appears to be ongoing now, possibly due to ocean warming.
10:33:11 AM
REPRESENTATIVE CHENAULT recalled that drift net fisheries have
been allowed into the Cook Inlet corridor to reduce pressure at
the intersection of the Matanuska-Susitna stocks of concern.
MR. JENSEN confirmed the member's recollection and said that the
drift net fleet has been used to alleviate pressure on the north
bound stocks; to good effect.
10:34:31 AM
REPRESENTATIVE EASTMAN reported that concerns have been
expressed regarding advisory committees (ACs) and whether the
board takes their local knowledge under consideration.
MR. JENSEN answered that the BOF routinely recognizes/hears the
AC's contributions, and any applicable comments are incorporated
into the deliberations.
10:35:55 AM
REPRESENTATIVE NEUMAN asked whether the conservation corridor is
working according to expectations and design.
MR. JENSEN responded that it seems to be performing effectively
and allowing appropriate escapement. He reminded the committee
that ADF&G manages the fisheries in the corridor area.
REPRESENTATIVE NEUMAN asked whether the status quo should be
maintained.
MR. JENSEN opined, yes.
10:37:29 AM
REPRESENTATIVE TARR referred to the committee packet to note a
letter of support [Arni Thomson, Alaska Salmon Alliance,
3/27/17] praising Mr. Jensen as the new chair of the BOF, and
paraphrased a portion of the contents that read as follows:
Under the leadership of the new Chairman, John Jensen,
from Petersburg, a broadly knowledgeable fisherman and
a seasoned Board member, we experienced a refreshing
spirit of respect, collaboration, thoughtful
deliberation, and an open environment throughout the
marathon.
REPRESENTATIVE TARR predicted that the collaboration and respect
the participants are experiencing will go a long way into the
future.
10:38:26 AM
REPRESENTATIVE KREISS-TOMKINS commented that the current
configuration on the BOF is generating praise from participants,
many of whom have attended meetings for a significant number of
years.
10:39:21 AM
FREDERICK "FRITZ" JOHNSON, Appointee, Appointee, Alaska Board of
Fisheries (BOF), said he has made his living commercial fishing,
primarily for salmon. The previous three-year term as a member
of the BOF has served as his apprenticeship, he said, and added
that he looks forward to continuing his service.
10:40:20 AM
REPRESENTATIVE CHENAULT asked about changing the board meeting
schedule from the current three to a five year cycle.
MR. JOHNSON acknowledged that there are good arguments for
maintaining the status quo, as well as for changing to a five
year cycle, especially when considering aligning with the life
cycles of the salmon. However, alignment isn't entirely
necessary as assumptions can be made and adjustments put in
place via extrapolation methods.
REPRESENTATIVE CHENAULT reminded that on a five year cycle the
emergency order authority could still be instituted, as
necessary.
10:42:34 AM
REPRESENTATIVE NEUMAN asked whether the conservation corridor
should be continued status quo.
MR. JOHNSON recalled the past success of the management
practice, and opined that the corridor measures should be
respected and observed over time.
REPRESENTATIVE NEUMAN surmised from the comment that Mr. Johnson
supports having the current conservation corridor measures
extended, status quo, for at least three more years.
MR. JOHNSON reiterated that it should remain in place and the
monitoring of results continued; it's a useful tool.
REPRESENTATIVE NEUMAN asked about the major cause for the
declining stocks in the corridor area.
MR. JOHNSON said that many of the possibilities were cited by
the previous appointee, Mr. Jensen, and added that population
pressure in the area should not be discounted. However, he
said, it could be difficult to identify the major cause, at this
point.
10:45:55 AM
REPRESENTATIVE EASTMAN asked how the advisory committees (ACs)
are worked into the board system.
MR. JOHNSON responded that the AC's are an important, local
resource, invaluable to the board process, and their
participation should not be reduced. These are the people who
are from the area, they are using the resource, and the process
would suffer without their input, he opined.
10:47:47 AM
REPRESENTATIVE NEUMAN asked whether the stocks of concern in the
northern Cook Inlet area could be mitigated by putting more
spawning fish in the beds.
MR. JOHNSON pointed out that without spawning fish there will
eventually be no fish at all. All the factors involved should
be scrutinized and allowing adequate escape numbers is certainly
necessary, he said.
REPRESENTATIVE NEUMAN asked if he supports higher escapement
numbers for the corridor.
MR. JOHNSON responded yes, and stressed that an adequate
escapement is crucial. Some systems may not be able to brood an
abundance of fry, and that's something to be studied, as well.
10:50:57 AM
REPRESENTATIVE TARR expressed support for the re-appointment of
Mr. Johnson.
REPRESENTATIVE KREISS-TOMKINS echoed support for Mr. Johnson
CHAIR STUTES expressed support for Mr. Johnson's confirmation.
CHAIR STUTES opened public testimony.
10:52:13 AM
HENRY MITCHELL stated support for two of the appointees. He
said John Jensen, is fair minded with extensive fisheries
knowledge; and Fritz Johnson is a dedicated fisherman, as well
as being dedicated to the preservation of the "Bristol Bay way
of life." They should both be confirmed, he urged.
10:53:31 AM
ED DERSHAM stated support for John Jensen as a dedicated board
member and effective chairman. Regarding Reed Morisky, he said
he appears to be a contributing member, and offered support for
his confirmation, as well.
10:56:26 AM
ERNIE WEISS stated support for each of the appointees and said
the currently seated members are thoughtful and thorough. He
said Fritz Johnson is a perfect fit, with good experience;
Chairman Jensen provides good leadership; and Reed Morisky is
also an excellent choice.
10:57:40 AM
ARNI THOMSON, Representative, Alaska Salmon Alliance (ASA),
stated support for each of the appointees nominated to the BOF,
paraphrasing from a prepared statement, which read as follows
[original punctuation provided]:
I [represent] the members of the Alaska Salmon
Alliance, a State of Alaska registered not for profit
trade organization representing primarily seafood
processors, but also the interests of fishermen, who
are involved in harvesting, processing and marketing
of seafood that is landed in Prince William Sound,
Cook Inlet, Kodiak, SE Alaska and Bristol Bay
communities.
ASA members have lengthy experience with Board of
Fisheries meetings dating back more than twenty-five
years. Several of us recently completed participation
in a fourteen day Board of Fisheries meeting in
Anchorage at the Sheraton Hotel.
Under the leadership of the new Chairman, John Jensen,
from Petersburg, a broadly knowledgeable fisherman and
a seasoned Board members, we experienced a refreshing
spirit of respect, collaboration, thoughtful
deliberation and an open environment throughout the
marathon. We also respect the knowledge and the
alliance of interests that Reed Morisky, from
Fairbanks brings to the Board. Finally we appreciate
the fact that Fritz Johnson, from Dillingham has
agreed to come back and serve on the Board. Fritz is
a man of integrity with extensive fisheries experience
and he has already established his collaborative,
cooperative and respectful nature. The ASA firmly
supports all three of these candidates.
10:59:30 AM
CHUCK DERRICK, President, Chitna Dip Netters Association, stated
support for the appointment of Reed Morisky, and said the
appointee brings a perspective from the interior of Alaska to
the board. The association urges that he be retained.
11:00:26 AM
ORVILLE HUNTINGTON stated support for each of the appointees,
especially Reed Morisky. He opined that Mr. Morisky brings a
valuable perspective to the board that the other members can't
match, particularly in the area of personal use/subsistence
fisheries.
11:01:48 AM
VERNER WILSON, III, Director, Natural Resources, Bristol Bay
Native Association (BBNA), stated support for Fritz Johnson,
which is in keeping with the association's resolution for
maintaining a regional seat on the board due to the economic
importance, resource abundance, and worldwide impact of the
Bristol Bay salmon runs. On a personal level, he opined that
Mr. Johnson is a great advocate for the Bristol Bay region and
connects well with fishermen from across the state.
11:03:57 AM
LINDSEY LAYLAND, Deputy Director, United Tribes of Bristol Bay
(UTBB) and Dillingham, stated support for Fritz Johnson as an
important regional representative, who brings a wealth of
history and experience to the board.
11:04:41 AM
GARY CLINE, Regional Fisheries Director, Bristol Bay Economic
Development Corporation, stated support for Fritz Johnson, as a
returning member who will be able to "hit the ground running."
Further, Mr. Johnson does his homework, carefully vets the
proposals, and engages well with each of the user groups. He
provides a valuable perspective and knowledge, as well as being
known as a man of integrity, he opined.
11:06:16 AM
PAUL SHADURA, II, South K Beach Independent Fishermen's
Association (SOKI), stated support for each of the appointees,
and said the recent board meeting, with them seated, allowed for
good interaction and was very productive. The decisions made
were considered balanced, and appropriately focused on the need
for high, sustained yields, and strong, productive runs. The
open meeting process needs to be maintained to allow community
engagement and as a forum to address local needs, he finished.
11:08:54 AM
AL BARRETTE stated support for the appointment of Reed Morisky,
characterizing him as a conservationist who focuses on the
health of the salmon resource stocks versus engaging in the user
group politics, and added that he works well with the fish
advisory groups by providing comprehensive reports on the
board's actions. Mr. Barrette then stated opposition to John
Jensen and Fritz Johnson, opining that these two members
practice risky management decisions, which is the reason there
are so many stocks of concern. For example, the Copper River
[Chinook] salmon are one year from being named a stock of
concern, and yet no board action has been taken to mitigate the
situation, leaving the escapement goals in jeopardy. Finally,
he pondered how the conflict of interest topic, previously
discussed in this the committee during the hearing of HB 87,
would apply to these candidates; causing recusal from board
deliberations and votes.
11:11:08 AM
GARY HOLLIE said he has attended all board meetings since 1986,
and the five year board cycle plan, as suggested by
Representative Chenault, is supportable. He stated support for
the appointees, describing them as valuable board members. John
Jensen's first meeting as chair went more smoothly than could be
reported for any meeting in the last decade, he opined. The
great job that the appointees have been doing, addresses the
allocation "[yin] and yang," for balance among the fisheries.
11:12:56 AM
SAMANTHA WEINSTEIN, Representative, Southeast Alaska Guide
Organization (SEAGO), stated support for the three appointees,
paraphrasing from a prepared statement, which read as follows:
My name is Samantha Weinstein & I represent the SE AK
guide Organization, a nonprofit organization
advocating for reasonable laws, regulations, and
policies affecting guided sport fishing, to protect
the sustainability of member businesses and the
fishery resources.
Southeast guided sport fishing has quickly grown over
the decades to ensure visitors and residents a
positive and safe fishing opportunity. As the
industry has grown, so too have the number of sport-
related issues coming in front of the State BOF.
SEAGO appreciates Mr. Morisky's representation of the
guided sport fishing industry on the Board and
facilitating other member's understanding of our
industry, and greatly appreciates Mr. Jensen's
leadership and extensive knowledge of various
southeast fisheries.
Learning and understanding the complicated regulations
and policies affecting the fishery resources, habitat,
subsistence fishing, guided and unguided sport
fishing, and commercial fishing can take years, even
with a background as an angler. As a relative
newcomer myself, who is learning as much as I can as
fast as I can, I greatly appreciate the time and
effort these gentlemen have put into their work on
current and historical Board service, from advanced
readings to collaboration and patience during
committee meetings.
As Mr. Morisky said, it is a great responsibility, and
he, Mr. Jensen, and Mr. Johnson have stepped up to the
plate to understand the concerns of and work with all
contributors and user groups.
I am looking forward to continuing the kind of
collaboration a March 11 peninsula clarion editorial
called "remarkable" in the upcoming SE finfish
meetings. After all, we are borrowing these resources
from our children and grandchildren.
SEAGO supports moving these three appointees forward
for confirmation. Thank you.
11:14:41 AM
JEFF STEPHAN, Representative, United Fishermen's Marketing
Association (UFMA), stated support for the appointees and
recounted his experience in working with the members in the
past. He praised the currently seated board members, and opined
that, as a group, they are thoughtful, work in a serious manner,
and are honorable individuals.
11:17:08 AM
JERRY MCCUNE, Representative, United Fishermen of Alaska (UFA),
stated support for the three appointees.
REPRESENTATIVE NEUMAN asked whether there are any members that
UFA doesn't support.
MR. MCCUNE said UFA is neutral on Reed Morisky. He opined, that
he has observed Mr. Morisky as an effective board member who has
done a great job.
CHAIR STUTES closed public testimony.
11:18:22 AM
REPRESENTATIVE FANSLER emphasized the importance of the board
members to be able to address the diversity of our large state
with its many user groups; each dependent on the renewable
resource, which are the statewide fisheries.
11:19:34 AM
CHAIR STUTES said the state fisheries represent a contentious
resource, and expressed appreciation for the members who sit on
the BOF. She stressed the need to continue the renewability,
sustainability, and continuity of the fisheries.
11:20:23 AM
REPRESENTATIVE NEUMAN commented on the importance of user groups
and expressed dissatisfaction for how the stocks of concern are
being managed, especially in the northern Matanuska-Susitna area
that hosts 8 of the 12 of the identified stocks of concern. He
said only two subsistence openings have been allowed in the last
25 years, and opined that such action is not acceptable. He
explained that the lack of opportunity means that residents must
travel to harvest for personal use/subsistence, often to the
Kenai area where overcrowding is an issue. The fisheries in the
upper reaches have been depleted, and lodges have had to close.
The economic situation prompted former Governor Sean Parnell to
issue a declaration. The board members have a difficult job, he
acknowledged, to fairly allocate the renewable fishery
resources. Despite the board's efforts, some areas are
suffering, he underscored.
CHAIR STUTES expressed confidence that the board is operating to
the best of their abilities.
11:23:07 AM
REPRESENTATIVE EASTMAN reported that his constituents don't
share the same degree of confidence as expressed by the chair.
The local government in his area has done what is possible and
now looks to the state for relief, he said.
11:23:34 AM
REPRESENTATIVE FANSLER moved to advance the confirmation of the
appointees to a joint session of the House and Senate for
consideration. He noted that each member's signature on the
committee's report in no way reflects the member's vote during
the joint floor session. There being no objection, the
confirmations were advanced.
The committee took an at-ease from 11:24 a.m. to 11:25 a.m.
HCR 8-KODIAK SEAFOOD & MARINE SCIENCE CENTER
11:25:55 AM
CHAIR STUTES announced that the next order of business would be
HOUSE CONCURRENT RESOLUTION NO. 8, Expressing the strong support
of the Alaska State Legislature for the Kodiak Seafood and
Marine Science Center; and urging the University of Alaska to
maintain the Kodiak Seafood and Marine Science Center as an
important resource in the state.
11:26:02 AM
CHAIR STUTES said:
Our first piece of legislation for the day is House
Concurrent Resolution 8. This bill is being
introduced as legislation on behalf of the House
Fisheries Committee.
We saw a draft version of this resolution on February
21st during a presentation by various speakers
supporting the Kodiak Seafood and Marine Science
Center.
A motion was made during that meeting to draft a
resolution on behalf of the House Fisheries Committee
that is the legislation we have before us today.
11:26:30 AM
CLIFF ZAWACKI, Intern, Representative Louise Stutes, Alaska
State Legislature, presented HCR 8, paraphrasing from a prepared
statement, which read as follows [original punctuation
provided]:
I'm here to introduce HOUSE CONCURRENT RESOLUTION NO.
8 - KODIAK SEAFOOD & MARINE SCIENCE CENTER (or KSMSC
for short)
As previously mentioned by the chair, House Fisheries
moved to adopt the draft of this resolution back on
Feb 21st and this is the legislation we have before us
today.
The Alaska seafood industry employs over 60,000
workers annually, more than any other private sector
industry in the state and this employment provides
those workers with $1.6 B in annual earnings.
The Kodiak Seafood and Marine Science Center (Formally
known as the Fisheries Industrial Technology Center)
was established in Alaska statute as part of the
University of Alaska in 1981.
Since that time the KSMSC has been instrumental in
developing employment opportunities in the fishing
industry and providing training on harvesting,
processing, and conservation of our fishery resources.
As the University of Alaska Fairbanks is currently
facing deep budget cuts UAF is considering developing
a public-private partnership to continue and grow the
functioning of this valuable center.
This resolution offers the State legislature's support
for the Kodiak Seafood and Marine Science Center by
urging the University of Alaska to find a solution
that keeps the center operating and stable.
11:28:34 AM
REPRESENTATIVE NEUMAN asked for a brief review of the
organization and its duties.
MR. ZAWACKI said the resolution offers the legislature's support
for the University of Alaska Fairbanks to continue funding, or
finding means to fund, the Kodiak Seafood and Marine Science
Center (KFMSC), and deferred further comment.
11:29:38 AM
JAY STINSON, President, Alaska Research Consortium, said the
consortium formed to generate ways and means for solving the
KFMSC funding problem. He reported that meetings with the
university administrators has been productive, and it appears
that a pathway forward has been forged that will maintain the
mission and keep the doors open. Despite the recent
developments, he urged passage of HCR 8.
11:31:22 AM
REPRESENTATIVE FANSLER moved to adopt HCR 8, labeled 30-
LS0584\A. Without objection, HCR 8 was before the committee.
11:31:46 AM
CHAIR STUTES opened public testimony. Seeing none, she closed
public testimony.
11:32:25 AM
REPRESENTATIVE FANSLER moved to report HCR 8 out of committee
with individual recommendations and the accompanying fiscal
notes. Without objection HCR 8 was reported from the House
Special Committee on Fisheries.
The committee took an at-ease from 11:32 a.m. to 11:34 a.m.
HB 76-MARICULTURE REVOLVING LOAN FUND
11:34:06 AM
CHAIR STUTES announced that the next order of business would be
HOUSE BILL NO. 76, "An Act relating to the mariculture revolving
loan fund and loans from the fund; and providing for an
effective date."
11:34:37 AM
REPRESENTATIVE FANSLER moved to adopt the proposed committee
substitute (CS) for HB 76, Version 30-ls0343\T, Bullard,
3/14/17, as the working document.
11:34:51 AM
CHAIR STUTES objected for discussion.
11:35:06 AM
ELIZABETH BOLLING, Staff, Representative Dan Ortiz, Alaska State
Legislature, said there are five changes proposed in Version T.
Referring to the committee packet document labeled, "Explanation
of Changes from HB0076 to HB0076 CS," she paraphrased the
changes, which read as follows [original punctuation provided
with slight modification]:
Section 3
AS 16.10.900(d) divides the fund into two critical
purposes, and ensures the revolving nature of one side
does not depend or detract from the other over time.
Section 4
AS 16.10.905 limits grants as one-time grants to non-
profit organizations.
Section 5
AS 16.10.905(b) caps the total amount available for
grants at [$500,000].
Section 8
AS 16.10915(4) allows the department to secure loans
by a first priority lien on collateral.
Section 13
AS 16.10.920 will ensure individual farmers accrue
interest.
11:36:27 AM
CHAIR STUTES removed her objection. Without further objection,
Version T was before the committee.
11:36:45 AM
REPRESENTATIVE NEUMAN noted that the proposed change in Section
3, allows the entire fund balance to be available for loans
versus a percentage of the balance.
MS. BOLLING responded that the change adds a new subsection,
(d), and said, "The fund was not previously split 60/40, this
bill splits it 60/40."
REPRESENTATIVE NEUMAN stated his understanding that the fund has
been described as allowing 40 percent, of the $500,000 balance,
to be loaned.
11:38:39 AM
BRITTENY CIONI-HAYWOOD, Director, Division of Economic
Development, Department of Commerce, Community & Economic
Development (DCCED), explained that the fund, up to this point,
has been fully available for use by individual mariculture
farmers. The bill seeks to make 40 percent of the fund
available for hatchery and salmon enhancement projects. The
remaining 60 percent will remain available to individual
farmers.
REPRESENTATIVE NEUMAN referred to the previously adopted Version
R, Section 10, and paraphrased the language, which read:
(e) The total balances outstanding on loans made to
borrowers under AS 16.10.910(a)(2) may not exceed 40
percent of the principal of the mariculture revolving
loan fund.
REPRESENTATIVE NEUMAN noted that in the previous bill hearing
the loan totals and balances available were discussed. He said,
"If I remember right, there was $5 million out, there was a loan
out for $500,000, left $450; 60 percent of it would be $2
million available, [leaving] one half million dollars
available."
MS. CIONI-HAYWOOD offered that the percentage split in the
previous version was for making loans to hatcheries; however,
concerns were expressed and the percentages were changed to
accommodate individual farmers. She clarified that the grants,
"which is the 'up to $500,000' piece" will be coming out of the
$400,000 and the remaining of the 40 percent can then be used
for loans to hatcheries. The remaining 60 percent is then set
aside for use by individual farmers.
REPRESENTATIVE NEUMAN asked whether loan defaults would affect
the fund.
MS. CIONI-HAYWOOD answered that a small amount is held in a
foreclosure reserve, currently $50,000. As additional loans are
made, she said the amount could be increased appropriately.
However, 60 percent of the fund would remain available for
loans.
REPRESENTATIVE NEUMAN questioned whether there is a standard
practice to loan out the entire corpus of the revolving fund.
MS. CIONI-HAYWOOD said that such a situation has not been
encountered, in her experience.
11:43:00 AM
REPRESENTATIVE FANSLER referred to Version D, Sec. 7, pages 3,
line 31, continuing to page 4, lines 1 and 2, which read:
(e) The total of balances outstanding on loans made to
borrowers under AS 16.10.910(a)(2) may not exceed 40
percent of the principal of the mariculture revolving
loan fund.
REPRESENTATIVE FANSLER asked whether this subparagraph can be
tracked in Version T.
MS. CIONI-HAYWOOD said that as the loan fund is currently only
available to mariculture farmers, the bill seeks to support
hatcheries, as well. The language of the 40/60 split has
vacillated between bill versions. However, Version T stipulates
that 60 percent of the fund will be available to farmers, and 40
percent to hatcheries.
REPRESENTATIVE FANSLER suggested the loan figures might be
better established in "bright line" numbers versus a percentage
split, and asked if there is a prevailing reason for the
approach being proposed.
MS. BOLLING responded that legal consultation suggested it would
be more reliable, and offer protection to individual farmers, to
"simply split the fund, in time, from one date." She said
that's what is proposed in the CS.
11:46:36 AM
REPRESENTATIVE EASTMAN asked what is the longest deferral time
allowed prior to repayment beginning.
MS. CIONI-HAYWOOD answered that individual farmers are currently
allowed a six year deferment, which remains the same in the
proposed CS.
11:47:20 AM
REPRESENTATIVE CHENAULT pointed out that loan recipients are
intended to be Alaskans. He asked whether all of the fishermen
that receive a loan from the program will be required to be
Alaskan [residents].
MS. CIONI-HAYWOOD answered yes.
11:48:02 AM
REPRESENTATIVE NEUMAN asked the director to clarify her
statement. He said, "I believe I heard you say that it's not
standard procedure to take 100 percent of these revolving loans
and have them available for loans."
MS. CIONI-HAYWOOD explained that the fiduciary duty of the
division is to maintain the revolving fund; however, if the
entire available amount were loaned, the fund would be shut down
until payments were received for recapitalization and provide a
loanable cash balance.
REPRESENTATIVE NEUMAN expressed concern for the fund becoming
bankrupt. He asked, "Standard policy for revolving loans; is it
standard policy to take 100 percent of the amount of the loan
and allow that all out for the other revolving loans that the
state handles."
11:50:18 AM
REPRESENTATIVE DAN ORTIZ, Alaska State Legislature, offered that
the intent of the bill is to jump-start a mariculture resource
that is projected to evolve into a $1 billion industry.
REPRESENTATIVE NEUMAN asked if 100 percent of the corpus of the
fund could be loaned out.
MS. CIONI-HAYWOOD restated how the corpus could be loaned
against.
The committee took an at-ease from 11:53 a.m. to 11:54 a.m.
11:54:26 AM
REPRESENTATIVE EASTMAN referred to Version T, page 5, lines 26-
28, and read:
The department may defer principal of and interest on
a loan made under AS 16.10.910(a)(2) for a period of
up to 11 years after the loan is made.
REPRESENTATIVE EASTMAN noted that the addition of this proposed
language will allow non-payment of a loan for 11 years.
MS. CIONI-HAYWOOD replied that the hatcheries are extended this
deferral period; however, the farmers are not.
11:55:19 AM
REPRESENTATIVE NEUMAN stated his understanding that the loan
fund has $5 million available and hatcheries are allowed to
borrow up to $1 million.
MS. CIONI-HAYWOOD affirmed the member's understanding.
REPRESENTATIVE NEUMAN asked how many applicants might be
anticipated.
REPRESENTATIVE ORTIZ said the industry is in the fledgling
state, making it difficult to determine how many applicants will
come forward should the bill become law. He offered that, from
anecdotal conversations, two groups are currently in a position
to make application.
REPRESENTATIVE NEUMAN expressed concern for the ability of the
fund to be maintained if 60 percent is on loan.
11:57:52 AM
REPRESENTATIVE EASTMAN referred to Version T, page 4, lines 12-
13, and paraphrased the language, which reads:
(B) $1,000,000 a year for an applicant under AS
16.10.910(a)(2);
REPRESENTATIVE EASTMAN asked for an explanation of the
significance regarding the $1 million per year stipulation.
MS. CIONI-HAYWOOD said the "per year" language was brought
forward from the previous bill version, and offered to provide
further information on the significance.
11:59:22 AM
REPRESENTATIVE NEUMAN stated concern for the number of loans
that could be made available, and asked what the long-range plan
is for continuing the funding corpus.
REPRESENTATIVE ORTIZ replied that the intent is to optimize an
underutilized, available fund, and jumpstart the budding
mariculture industry. He expressed appreciation for the
member's concerns regarding the solvency of the fund; however,
it has an excellent record of good, solid management practices,
and has grown over the years. The concerns are unmerited when
considering this solidly managed fund, he opined.
REPRESENTATIVE NEUMAN maintained his concern regarding solvency,
stating, "I've seen a lot of these revolving loan funds fail
because ... they've been overextended."
REPRESENTATIVE ORTIZ responded, "Not in this department you
haven't."
REPRESENTATIVE NEUMAN referred to Version T, page 3, lines 8-10,
which read:
(9) make one-time grants for organizational and
planning purposes to nonprofit organizations eligible
for loans under AS 16.10.190(a)(2) in amounts not
exceeding $100,000.
REPRESENTATIVE NEUMAN noted that the authority falls under the
purview of the DEC commissioner, and asked what the purpose and
parameters are for approving this type of loan.
MS. CIONI-HAYWOOD explained that the language reflects similar
allowances, similar to what reside in the fisheries enhancement
revolving loan fund, where grants were extended to regional
hatcheries for planning purposes.
12:04:03 PM
REPRESENTATIVE EASTMAN stated his understanding that the term
grant signifies money that will not be paid back and asked how
grants might impact the 60-40 percentage split.
MS. CIONI-HAYWOOD responded that the grant amount was capped at
$250,000 and is a draw from the 40 percent hatchery share.
12:04:55 PM
REPRESENTATIVE FANSLER commented that, should the fund become
overextended, the legislature could choose to appropriate
additional funding, if mariculture proves to be successful.
MS. CIONI-HAYWOOD agreed, and said the fisheries enhancement,
revolving loan fund, was capitalized on numerous occasions.
12:05:38 PM
REPRESENTATIVE NEUMAN said he had further questions for the
director, and sought permission to proceed.
CHAIR STUTES approved the member's request, based on the
questions being "new."
12:06:34 PM
REPRESENTATIVE NEUMAN inquired about the balance of the
fisheries enhancement revolving loan fund, noting that funds
with grant authority generally have a larger corpus.
MS. CIONI-HAYWOOD responded that the fisheries enhancement
revolving fund has about $100 million, as a balance.
REPRESENTATIVE NEUMAN said that is a substantial amount compared
to the $5 million proposed for the mariculture revolving loan
fund balance.
12:08:19 PM
REPRESENTATIVE EASTMAN commented that using a general fund
appropriation to address a shortfall in the fund balance could
present a budgetary problem.
12:08:45 PM
REPRESENTATIVE FANSLER moved to report the proposed CS for HB
76, Version 30-LS0343\T, Bullard, 3/14/17, from committee with
individual recommendations and the accompanying fiscal notes.
REPRESENTATIVE EASTMAN objected.
12:10:05 PM
A roll call vote was taken. Representatives Fansler, Neuman,
Kreiss-Tomkins, Tarr, and Stutes voted in favor of the motion to
move HB 76 from committee. Representatives Eastman and Chenault
voted against it. Therefore, CSHB 76(FSH) was reported out of
the House Special Committee on Fisheries by a vote of 5-2.
CHAIR STUTES recessed the meeting to a call of the chair.
ADJOURNMENT
The House Special Committee on Fisheries meeting was recessed at
12:10 p.m. to a call of the chair.
[The meeting was reconvened April 4, 2017.]