CS FOR SENATE CONCURRENT RESOLUTION NO. 28(RES) Establishing the Joint Legislative Salmon Industry Task Force. This was the first hearing for this bill in the Senate Finance Committee. Senator Austerman, sponsor, testified this resolution was proposed to address the "evolution" in the salmon industry, which would continue for several years. Senator Austerman detailed that meetings would be held before the 2001 salmon fishing season begins, and again after the season concludes. The purpose of the task force, he said, would be to identify solutions, including finding methods in which the legislature could assist in "resolving some of the problems that are in this industry". Just as important, he stressed, the task force would identify efforts that could be undertaken within the industry. SUE ASPELUND, Executive Director, Cordova Fisherman United testified in Juneau in support of the bill on behalf of the fishing fleets in the Copper River and Prince William Sound represented by the organization. She asserted the fishing industry is "in crisis" and there is a need to "comprehensively evaluate where we are and how we can move forward into the future." She emphasized a successful approach to a solution would include three components: the issue must be addressed on a statewide basis, in Alaska and by Alaskans; fishing industry representatives, including fisherman, tenders, and processors, must be involved in the evaluation at the "very basic level and throughout the process" and; a funding method is required because the industry does not have the resources to address all the impacts to stakeholders in the state. She expressed that commercial fishing is the "lifeblood" of many communities in coastal Alaska. Senator Ward remarked, "Clearly, this is something that needs to be done." However, he questioned the limited panel membership of nine public members, as he identified more than nine user groups. Ms. Aspelund responded that "the fishing industry in Alaska is extremely complex" and there are many user groups involved. She relayed discussions on the issue, which determined that the task force is the "starting point" to address the problems. She asserted the public members would need to "leave their peer group at the door". She stated the resolution allows "plenty of opportunity" for discussions involving the impacts to all stakeholders and communities. Therefore, she said, it is anticipated the nine public members of the task force would serve as representatives of the balance of the stakeholders in the area they represented and would be responsible for consulting and obtaining input from their respective communities. Senator Ward clarified the task force would be comprised of a 13- member panel with subcommittees operating within the group. Senator Austerman affirmed and detailed the intent to utilize subcommittees to take up "specific issues in specific areas". He stressed the intent to address the salmon industry as a statewide industry, while recognizing there are regions in the state with different problems. Ms. Aspelund added to her testimony that government involvement is required to enable the seafood processing sector to participate in this effort, to protect them from anti-trust violations. She noted the inability to gather with this group, because of anti-trust issues, has hindered earlier efforts at identifying possible solutions for the fishing industry. JERRY MCCUNE, United Fishermen of Alaska testified in Juneau in support of the proposed task force. He stated that the organization anticipates the task force would "answer a lot of the questions we haven't been able to answer in the past" due to the inability to gather the harvesters, processors, hatcheries and the public. He expressed the pink salmon fishery is of particular concern given competition with farmed fish. KATHY HANSON, Executive Director, Southeast Alaska Fishermen's Alliance, testified in Juneau and described the organization that represents salmon, crab, shrimp and long-line fishermen. She stated the organization supports the proposed task force. She further described the anti-trust issue and the need for government involvement to allow meetings between the harvesters and processors. Ms. Hanson stressed that although salmon is the primary focus of the task force, other fisheries and "gear groups" must be considered as well as they could be impacted either positively or negatively. BRUCE SCHACTLER, Commercial salmon fisherman, At-Large Member, Board of Directors, United Fishermen of Alaska, and, President, United Salmon Association, testified via teleconference from Kodiak that this resolution is "a wonderful piece of leadership". He approved of the public participation on the taskforce membership, noting it gives latitude to appoint the most qualified people. He stressed the salmon fishery is "tremendously complicated" and is specifically designed to be such. Co-Chair Kelly commented that his only disagreement with the witness' statement is that this action is "timely" as it should have been addressed sooner. AT EASE 9:34 AM / 9:37 AM Senator Ward thanked Senator Austerman for sponsoring this resolution. He referenced US Senator Frank Murkowski's address to the Legislature where he called for a task force consisting of federal and state officials. He asked if Senator Austerman had discussed the matter with the Congressman. Senator Austerman replied he had not spoken to Senator Murkowski directly about this although he had discussions with Senator Ted Stevens on the matter. SENATOR BEN STEVENS shared he had conversations with Dave Russell, staff to US Senator Ted Stevens, with regards to coordinating these efforts. Senator Ben Stevens noted Alaska's congressional delegation supports SCR 28. He said the understanding is that most of the changes must be made at the state level, but that federal resources could assist in the process. Senator Ward pointed out that federal assistance would be necessary, for instance in relation to the Canadian government. Co-Chair Kelly surmised the task force would not be restricted from addressing matters not specifically listed in this resolution. Senator Green questioned the change made in the Senate Resources committee substitute with regards to the public membership on the task force. This change stipulated the public members would be representatives of the commercial salmon fishing industry. She did not support the restriction to commercial fishing representatives when decisions made by this body could impact the sport fishing industry. Senator Austerman explained the change was made to avoid a region sending a representative that is not "in tune" with the situation. He assured the intent to involve people who want to resolve the issue and for the process to be "industry driven" rather than bureaucratic. Co-Chair Kelly opined the intent of the task force is not to address the relationship between commercial fishing and sport fishing, but rather to identify ways the commercial fishing industry could adapt to a changing world market and technologies. Senator Austerman agreed, but stressed this discussion must take place as sport fishing activities do impact commercial fishing. Senator Olson asked for assurances that the proposed task force would not adversely impact other "harvesters of the sea". Senator Austerman agreed all uses must be considered and stressed the primary intent of the task force is to consider the issues related to salmon. Senator Austerman mentioned the rising mari-culture industry and the impacts it would have on salmon. He warned that as the aquaculture industry evolves, "it will have some real impacts on the salmon industry." Co-Chair Kelly requested Senator Austerman work with Senator Green and Senator Ward to address their concerns. Co-Chair Kelly ordered this bill HELD in Committee.