CSHB 265(FSH) EXPORT OF DUNGENESS CRAB  CHAIRMAN LEMAN brought CSHB 265(FSH) before the committee as the next order of business. REPRESENTATIVE WILLIAMS , prime sponsor of HB 265, said the bill was introduced in response to constituents who are struggling to develop a live crab market in British Columbia or the Lower 48. Current law provides that if an out-of-state live dungeness market is established, the product must be shipped by air transportation, which is tricky and, in many cases, cost prohibitive. There are frequent weather delay problems and other forms of delays associated with flying in Alaska. CSHB 265(FSH) will remove the air transportation requirement when shipping live dungeness crab out of state. The bill goes further by answering concerns about marine toxins, particularly PSP, by not allowing surface transportation to occur in areas where the Department of Environmental Conservation is requiring the testing of crab for marine toxins. Representative Williams said the legislation will allow fishermen to expand their markets and provide an opportunity for diversification at this time. Number 310 STEVEN DAUGHERTY , Assistant Attorney General, Natural Resources Section, Department of Law, stated the department's concerns with the original bill have been greatly reduced both because of changes made in the committee substitute and because they have learned that the underlying statute (AS 16.10.240) serves the purpose of making commercial fishing regulations, including size and sex limitations and reporting requirements enforceable. Mr. Daugherty said it has been brought to the department's attention that the underlying statute generally prohibiting transportation of live king, tanner and dungeness crab, except via air freight after prepackaging, helps prevent vessels fishing in isolated areas from retaining undersize or female crab in violation of state regulations. It has also been brought to their attention that these enforcement concerns are much less significant in the dungeness fisheries because they do not generally occur in isolated deep water areas, and it much easier for enforcement officers to board and inspect vessels fishing for dungeness than for king and tanner crab; thus, the underlying statute will continue to serve a compelling purpose even if export of dungeness is allowed. He also noted that by prohibiting export by surface transportation during periods in which PSP testing is required, the bill will continue to allow the statute to serve public health purposes. In his closing comments, Mr. Daugherty said that after reviewing the committee substitute and discussing the enforcement purposes of the underlying statute with staff from Fish & Game and Fish & Wildlife, the department does not believe that CSHB 265(FSH) would significantly increase the risk of a successful challenge to the underlying statute. Number 355 CAPTAIN RICHARD GRAHAM , Division of Fish & Wildlife Protection, Department of Public Safety, testifying from Anchorage, added that the legislation will allow a vessel to take live crab directly from the fishing grounds out of state waters, waters for which the state has jurisdiction. This particular statue will require them to perhaps conduct more inspections at sea than they do at this point, but the dungeness fishery is a small fishery and somewhat isolated to Southeast Alaska, so this additional requirement on their part to conduct inspections on the fishing grounds would not be that much of a burden. Captain Graham noted there is a regulation in the Alaska Administrative Code that requires all vessels that leave state waters with what is referred to as either raw or unprocessed product, to check out with the Department of Fish and Game and complete fish tickets. However, he is confident that some type of arrangement could be made between the department and these departing vessels to ensure that they are in compliance with that particular regulation. Number 386 CHAIRMAN LEMAN stated CSHB 265(FSH) would be set aside until a quorum of the committee was established.