SRES - 3/27/95 SJR 20 COMMUNITY DEVELOPMENT FISHING QUOTAS CHAIRMAN LEMAN brought up SJR 20 as the next order of business before the Senate Resources Committee. The chairman called the first witness. KARL OHLS, Executive Director, Western Alaska Fisheries Development Association, testifying from Anchorage, stated he supports SJR 20. Mr. Ohls stated CDQ groups are interested in a set-aside of CDQ's for all species, so that the groups will not be dependent upon revenue from a single species. This resolution reflects that goal. TAPE 95-29, SIDE A SENATOR TAYLOR expressed surprise at the addition of crab, and asked Mr. Ohls to comment on that. MR. OHLS responded, "The North Pacific Fisheries Management Council (NPFMC) is working on a comprehensive rationalization [?] plan which will become the allocation plan for all species under their management, which includes the Bering Sea crab resource, the Pacific cod resource, the yellowfin sole,...so crab is a part of that." SENATOR TAYLOR asked Mr. Ohls if he is correct in believing that the CDQ allocation is somewhat controversial. MR. OHLS replied, "Only as much as the current program would be controversial." SENATOR HOFFMAN asked, "On the crab issue, wasn't it the Alaskan Crab Association that offered an allocation last year to start at 3%?" MR. OHLS responded that the council has been working for some time of deciding allocation. Somewhere down the road they are going to get to allocations of all these different species. Licenses, CDQ's, IFQ's, whatever is appropriate. Members of the industry are talking with each other about what they'd like to see. Last year, the Alaska Crab Coalition broached the subject of a 3% crab allocation in the Bering Sea for CDQ's, with a three-year time limit on it. Number 080 KIM METCALFE HELMAR, Special Assistant, Department of Community & Regional Affairs, stated the administration supports SJR 20. Ms. Helmar reads a written statement, giving statistics on unemployment and income levels before and after implementation of the CDQ program in the region affected by the program. Both income and employment levels rose after implementation of the CDQ program. SENATOR TAYLOR asked why the administration opposes IFQ's. MS. METCALFE HELMAR responded she could not answer that question. Number 116 SENATOR HOFFMAN asked Ms. Metcalfe Helmar if she could speak on the fiscal note. [No answer is discernable on the recording.] SENATOR TAYLOR commented that the resolution appears to ask the federal government to make an allocation decision regarding a state resource. Number 132 DAVID BENTON, Acting Deputy Commissioner, Department of Fish & Game, stated he has worked for both the Hickel administration and the Knowles administration, and both administrations have strongly supported the CDQ program. He urged support of SJR 20. In regards to Senator Taylor's question, Mr. Benton responded that, by and large, these are resources that are not in state waters. The vast bulk of the Bering Sea crab resource is in federal waters. In the Gulf of Alaska, it is a different situation all together, and Senator Taylor's concern would be valid. SENATOR TAYLOR commented he has always supported CDQ's, but he is fearful that sooner or later they will end up pitting one community against another. He finds the current IFQ's violative of our state's rights. Governor Knowles promised to file a lawsuit on IFQ's and promised to oppose IFQ's, yet now he is not doing that. Senator Taylor believes 70% of IFQ's are owned by people in Seattle. That is the ownership of fish. He supports the concept of SJR 20, but he cannot support the concept of allowing the federal government to make allocation of fish from state waters. MR. BENTON responded he agrees with Senator Taylor wholeheartedly, and he thinks the governor would agree as well. The governor really struggled with the decision regarding joining the Alliance Against IFQs' lawsuit on halibut and sablefish. The governor does support setting aside a percentage of the quota for entry-level fisheries. Neither former Governor Hickel nor Governor Knowles is supportive of bringing CDQ's into the Gulf of Alaska, for the very reasons listed by Senator Taylor. We have considered and are trying to develop some other programs for the gulf that would allow for small-boat fisheries in coastal communities and entry-level fisheries. Mr. Benton stated he presently represents the state on the NPFMC. Number 274 SENATOR HALFORD stated he appreciated the governor's testimony at the hearing in Anchorage, and agreed with the general direction. He wondered if the committee should add a further resolve to SJR 20, in effect stating that if there are new IFQ allocations considered, that at least x% be considered in CDQ's and entry provisions. That supports what U.S. Senator Stevens and the governor are trying to accomplish. He agrees with the comments about the gulf too. Senator Halford stated he would trade all the IFQ's in the Bering Sea for CDQ's. SENATOR TAYLOR commented that his primary concern was in trying to maintain some level of consistency. The management of mammals was taken away from the state in 1978; ADF&G no longer manages seals, which he used to hunt and eat. ADF&G no longer manages sea lions, whales, or walrus. SENATOR HALFORD noted that management of those mammals was actually taken over by the federal government in 1973. SENATOR TAYLOR added that now the state has lost management control of sablefish, and will possibly lose control of all groundfish and crab. He does not think the state should voluntarily forfeit its' right to allocation. CHAIRMAN LEMAN added he would not support that either, and would certainly be willing to amend SJR 20 to accommodate that concern. He doesn't think Senator Hoffman would be opposed to that type of revision. SENATOR HALFORD expressed agreement with Senator Taylor on the inside allocation issues. However, he is not above helping any segment of Alaska's population get anything it can from the outside. He would like to make them all CDQ's. SENATOR TAYLOR commented he doesn't have any problem with the Machiavellian aspect of it, he would probably do it too. It's just that he would like to have it done by us, not done to us. CHAIRMAN LEMAN stated he would like to hold SJR 20 over to work out something. He asked Mr. Benton to help with that. The chairman noted he would like to hear the resolution again on April 5th.