SB 89-SHELLFISH ENHANCE. PROJECTS; HATCHERIES  3:39:41 PM CHAIR GIESSEL announced consideration of SB 89, noting it was a bill that had significant work last year. Public testimony was opened and closed on April 5. She asked the committee for discussion or questions. SENATOR WIELECHOWSKI asked the Alaska Department of Fish and Game (ADF&G) how cost recovery would work for salmon and how it would work for shellfish, because the two are so different. FORREST BOWERS, Deputy Director, Division of Commercial Fisheries, Alaska Department of Fish and Game (ADF&G), Juneau, Alaska, referring to SB 89, explained that the department uses two approaches for salmon cost recovery. The first is a cost recovery fishery whereby the hatchery operator contracts with one or more harvest vessels to harvest excess fish for broodstock needs, and those are sold to pay for hatchery operating costs. The second approach happens in the case of a remote release site where salmon fry are reared away from a hatchery and return to this remote release site. A common property fishery occurs there, and anyone who harvests salmon in that designated area pays an assessment fee to fund those operations. Under both approaches, those monies are collected by the State of Alaska and redistributed back to the hatchery operators. MR. BOWERS said that because hatchery-produced shellfish don't come home to a natal area to reproduce they will mix with natural stock, therefore, it's most likely that the assessment fee approach would be used for cost recovery. 3:43:15 PM SENATOR WIELECHOWSKI asked how far shellfish typically migrate and how special and terminal harvest areas are defined for shellfish. 3:43:39 PM SENATOR VON IMHOF joined the committee. MR. BOWERS replied that some shellfish don't migrate at all, like clams and scallops. Crabs walk around, but require specific habitat to be successful. So, their fishery management areas have been designed around stock boundaries that are a known range of distinct stocks. In the case of Pribilof blue king crab, a species of interest in this bill, the Board of Fisheries has defined a registration area and that would most likely be the assessment area. SENATOR WIELECHOWSKI asked if he expected some of the wild stock would get caught and if the money would be given back to the hatchery when they are caught. Is there some sort of genetic testing? 3:45:23 PM MR. BOWERS said that is a good question. In some cases, the hatchery-produced shellfish would be mixed with naturally- produced animals. There is no way to mark them, and the cost recovery fee would accrue from all the catch in the area. SENATOR MEYER said it seemed like some money could be saved if notice of hearing was just done on-line instead of in a newspaper, language on page 3, line 3. MR. BOWERS responded that is standard Alaska Administrative Procedures Act language. 3:47:33 PM SENATOR MEYER asked if "reasonable period" on page 4, line 9, is defined. MR. BOWERS replied not in this bill. It would likely be laid out in the implementing regulations. SENATOR WIELECHOWSKI asked if this would impact harvest quotas. MR. BOWERS answered that it could increase them if successful, and that is the intent. SENATOR WIELECHOWSKI asked if there is any scientific opposition to this bill within ADF&G. MR. BOWERS answered that he hasn't seen any opposition expressed by staff or the leadership team. 3:49:17 PM SENATOR WIELECHOWSKI said a concern was raised about the ability to stop permits that were already issued. MR. BOWERS replied that language was in section 3 on page 4, line 8, a provision about alterations, suspension, or revocation of a permit. CHAIR GIESSEL thanked him for his expert answers. 3:50:33 PM TIM LAMKIN, staff to Senator Stevens, Alaska State Legislature, Juneau, Alaska, expressed the sponsor's gratitude for hearing SB 89 that will improve and diversify Alaska's fisheries portfolio. 3:51:04 PM SENATOR MEYER said this may seem minor, but "in the discretion of the commissioner" on page 4, line 11, should be "at the discretion of the commissioner." CHAIR GIESSEL said that Senate Finance Committee could take it up, because that is where the bill goes next. Also, publishing in the newspaper is template language that is currently part of state law. Changing it was attempted about three years ago, but it didn't pass. SENATOR COGHILL moved to report SB 89, version 30-LS0691\A, from committee with individual recommendations and attached fiscal note(s). There were no objections and it was so ordered.