HOUSE COMMITTEE ON

AGRICULTURE AND NATURAL RESOURCES

 

 

May 13, 2003 Hearing Room D

1:00 pm Tapes  83 - 84

 

MEMBERS PRESENT:            Rep. Jeff Kropf, Chair

Rep. George Gilman, Vice-Chair

Rep. Kelley Wirth, Vice-Chair

Rep. Terry Beyer

Rep. Dave Hunt

Rep. Donna Nelson

Rep. Patti Smith

 

 

STAFF PRESENT:                  Ray Kelly, Committee Administrator

David Peffley, Committee Assistant

 

 

MEASURES HEARD:                     SB 673 A –Work Session

 

 

 

These minutes are in compliance with Senate and House Rules.  Only text enclosed in quotation marks reports a speaker’s exact words.  For complete contents, please refer to the tapes.

 

TAPE/#

Speaker

Comments

Tape 83, A

004

Chair Kropf

Calls the meeting to order at 1:09 and opens a work session on            SB 673 A.

SB 832 A – WORK SESSION

020

Senator Messerle

Speaks to the importance of SB 673 A, in order to boost the fishing industries and exempts fisheries from anti-trust legislation. 

052

Rep. Krieger

HD 1, South Coast.  Testifies in favor of SB 673 A as a reasonable approach to setting prices amongst the fishing industries.

139

Sen. Messerle

Wants to affirm that SB 673 A should pass without amendments.

146

Rep. Hunt

Asks Rep. Krieger to confirm the percentage figures cited earlier.

152

Rep. Krieger

Speaks to a monopoly within the industry. 

155

Rep. Hunt

Asks if that pertains to one company or a series of companies.

158

Rep. Krieger

Refers to an association of four or five companies.

161

Rep. Hunt

Asks if another state has a similar program in place.

164

Rep. Krieger

Speaks to a parallel process in California.

168

Rep. Brown

HD 10.  Responds to Rep. Hunt’s question in that this bill parallels the very successful grass seed program. Reaffirms prior testimony.  Urges the passage of SB 673 A.

203

Rep. Joanne Verger

HD 9.  Notes that this bill is vital to the coastal fisheries and vital to the revival of the fishing industry. 

229

Chair Kropf

Asks if this legislation should be amended.

232

Rep. Brown

States that the legislation should pass as is.

236

Rep. Verger

Reaffirms Rep. Brown’s sentiments that the bill needs to pass as is.

240

Rep. Nelson

Asks how the assessment works.

246

Chair Kropf

Notes that ODFW will address that question.

252

Rep. Nelson

Asks if California and Washington have similar requirements.

254

Rep. Brown

States uncertainty.

260

Nick Furman

Executive Director, Oregon Dungeness Crab Commission (ODCC).  Explains the intent and implications of SB 673 A.  Speaks to the danger and profitability of commercial Dungeness crab fishing and the necessity of this bill. Addresses Rep. Nelson’s concerns about Washington and California. 

430

Rep. Nelson

Asks how we can establish a fair pricing system.

TAPE 84, A

002

Furman

Notes that current process will not change as a result of SB 673 A. 

020

Rep. Nelson

Asks about the voting process in relation to price-setting.

029

Furman

Emphasizes the voluntary nature of the program.

053

Rep. Hunt

Asks the percentage of permits held by those in Oregon.

057

Furman

Responds that all except forty permits are held by Oregonians.

064

Rep. Hunt

Asks for clarification of the voluntary compliance and where it is addressed in the bill.

076

Furman

Notes that it is implied in ODFW’s role.

090

Rep. Hunt

Asks for clarification of the intent of the voluntary nature of the program.

095

Furman

Reaffirms that the intent is for the program to be voluntary and adds that ODCC doesn’t have a problem qualifying that in the bill.

104

Rep. Smith

Asks about the 21-day delay and whether that is normal.

110

Furman

Addresses the delay in openings and asks whether the delay is due to price confusion.

123

Chair Kropf

Asks a hypothetical question based on the voluntary nature of the program.

131

Furman

Notes that it would be unchartered territory.  Gives assumptions on the action to be taken.

168

Chair Kropf

Asks if a larger fishery could potentially upstage the process.

174

Furman

States that they would have to assume the best-case scenario.

185

Rep. Nelson

Asks if all commercial crabbers need a permit.

187

Furman

Notes that they do.

193

Rep. Nelson

Asks about individual crabbers.

202

Furman

Notes the need for a permit.

218

Rep. Nelson

Asks if this  bill would preclude foreign entities from harvesting our crabs.

225

Furman

Notes that these entities are not involved.

230

Rep. Nelson

Asks about foreign crab.

233

Furman

Notes that Dungeness crab is indigenous to our coast.

242

Rep. Beyer

Asks if Oregon is the only state with a crab commission.

245

Furman

Affirms that is correct.

253

Rep Beyer

Asks if the other west coast states has given feedback toward this idea.

260

Furman

Notes that they have voiced no reservations.

305

Chuck Craig

Deputy Director, Oregon Department of Agriculture (ODA).  Submits (EXHIBIT A) and testifies with strong support for SB 673 as a potential stabilizing influence on the industries.

340

Chair Kropf

Asks if the grass seed program has been productive to date.

345

Craig

Affirms that the program has been very successful.

358

Brent Searle

ODA.  Reaffirms Craig’s testimony and gives supporting information of the grass seed program.

433

Rep. Smith

Asks what other commodities might need this type of legislation.

437

Searle

Replies that this approach would best benefit co-ops and those industries which negotiate their own prices.

444

Rep. Smith

Asks for examples.

445

Searle

Cites hazel nuts, potatoes, and other co-ops.

TAPE 83, B

001

Rep. Nelson

Asks who proposed the -2 amendments (EXHIBIT B). 

003

Chair Kropf

Notes that opponents of the bill submitted it through the Chair.

005

Rep. Nelson

Asks if the bill has already been amended.

008

Chair Kropf

Clarifies that the bill was already amended in the Senate.

011

Rep. Nelson

Asks about the viability of using a different agency than ODA.

016

Craig

Responds by highlighting the relationship between ODA and the seafood industry. 

036

Chair Kropf

Asks if the prices are bound by the present ORS.

038

Searle

Clarifies that the relationship is determined by the bylaws of the cooperatives negotiating with the dealers.

056

Chair Kropf

Asks to confirm seafood byline

058

Searle

Affirms the Chair and notes that the process would not be changed.

070

Chair Kropf

Talks about disputed language in the -2 amendments.

074

Searle

Notes that ODA hasn’t had time to peruse the -2 amendments.  Asserts their position on the original bill.

081

Chair Kropf

Asks when ODA authorizes bargaining.

108

Searle

Speaks to the decision process.

113

Rep. Hunt

Asks about future departments’ authority.

125

Craig

Reaffirms the voluntary nature of the program.

132

Rep. Hunt

States that he doesn’t see Craig’s assertion in the language of the bill.

141

Searle

Speaks to determining price and bylaws and stuff.

164

Rep. Hunt

Asks about similarities and differences between the crab and the hay seed industries.

177

Craig

Addresses the similarities between the two industries and the differences in terms of danger and immediacy. Notes that the similarities far outweigh the differences.

248

Cindy Robert

Roger Martin and Associates.  States changes which need addressing including forcing a price on those who were not part of negotiations. Submits (EXHIBIT C) - recommended amendments to the                     -2 amendments.

370

John Warner

Owner, Caylan Fisheries, Charleston, Oregon.  Submits (EXHIBIT D) and testifies in favor of SB 673 A without amendments, as a boon to the industry. 

430

Russell Smotherman

Pacific Northwest Dungeness Marketing Association.  States that passage of SB 673 A does harm to no one, but failure to pass it will harm the industry.

TAPE 84, B

017

Chair Kropf

Asks the implications of a hypothetical situation where people don’t participate in the program.

025

Smotherman

States that it would allow the Dungeness crab fleets to negotiate and opines that it would be advantageous to smaller buyers.

031

Chair Kropf

Speaks to market share.

036

Smotherman

Agrees with the Chair.  Adds that it would force the larger buyers to negotiate.

040

Chair Kropf

Confirms the real-life effects of the passage of SB 673 A.

042

Lloyd Whaley

Shrimp and crab fisherman.  Speaks in support of SB 673 A.  Addresses incentive versus market share.

073

Rep. Beyer

Asks about a season opening price.

078

Whaley

Speaks to a lack of options and price monopoly.

103

Rep. Hunt

Asks for clarification that smaller buyers will benefit most from this legislation and asks whether the witnesses find the language to be suitable.

114

Whaley

Gives an illustration to highlight his position.

124

Smotherman

Notes that the current process is not amenable to the small buyer.

155

Whaley

Adds his input on moving the industry forward.

170

Jeff Mulkey

Reedsport fisherman.  Testifies in support of SB 673 A.

193

Brad Penier

Oregon Business Crab Commission.  Urges passage of SB 673 A.

223

Chair Kropf

Directs proponents and opponents to make the appropriate changes to SB 673 A in time for Thursday’s work session. Closes the work session on SB 673 A and adjourns the meeting at 2:54 PM.

 

 

 

The following prepared testimony was submitted for the record without public testimony for SB 673 A.

 

Tom Nowlin

Submits (EXHIBIT E).

 

 

EXHIBIT SUMMARY

 

A – SB 673 A, written testimony, Chuck Craig, 3 pp.

B – SB 673 A, -A2 amendments, staff, 8 pp.

C – SB 673 A, written testimony, Cindy Robert, 1 p.

D – SB 673 A, written testimony, John Warner, 1 p.

 

The following exhibit is listed out of order in the tape log.

 

E – SB 673 A, written testimony, Tom Nowlin, 1 p.