Legislature(1995 - 1996)

02/06/1996 01:38 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  HOUSE BILL NO. 59                                                            
                                                                               
       "An Act  relating to  raffles and  auctions of  certain                 
       permits  to  take  big  game;   and  providing  for  an                 
       effective date."                                                        
                                                                               
  REPRESENTATIVE CON  BUNDE, sponsor  of HB  59, testified  in                 
  support of the legislation.  He noted that the purpose of HB
  59 is to  allow qualified organizations to raffle or auction                 
  big game permits as  a revenue source for game  management.                  
  A qualified organization which auctions  a permit can retain                 
  a percentage of  the sale  plus administrative costs,  while                 
  the remaining amount will be returned  to the state for fish                 
  and game activities.                                                         
                                                                               
  Representative  Bunde observed  that  HB  59 authorizes  the                 
  Department of   Fish  and Game  to issue  one bison  harvest                 
  permit each year for a bison from the Delta bison herd.  The                 
  permit  may  be   auctioned  or   raffled  by  a   qualified                 
  organization on behalf of the  Department of Fish and  Game.                 
  The organization  is entitled  to receive reimbursement  for                 
  expenses plus up to  ten percent of the net proceeds  to use                 
  for the promotion of fish and game law enforcement.                          
                                                                               
  Representative Bunde  observed  that  the  legislation  will                 
  allow the Department  of Fish and  Game to issue, through  a                 
  competitive auction  or raffle,  up to  two harvest  permits                 
  each year  for each  of the  following species:  Dall sheep,                 
  bison, musk ox, brown or  grizzly bear, moose, caribou,  and                 
  wolf.  The qualified organization  that conducts the auction                 
  may  retain   up  to  ten   percent  of  the   profits  plus                 
  administrative  costs.     The  remaining  profit   will  be                 
  deposited into the Fish and Game fund.                                       
                                                                               
  Representative  Bunde  noted  that  there  are at  least  11                 
  western  states  that  have  provisions  for  auctioning  or                 
  raffling big game  harvest permits.  He  asserted that every                 
  state with a  similar program  has had a  positive impact on                 
  their  budget.    He maintained  that  the  legislation will                 
  provide another revenue source for the Dept of Fish and Game                 
  and will enable the continuation of game management programs                 
  for the common use of the people.                                            
                                                                               
  Representative  Brown  asked  if  there  is  competition  to                 
  determine which organizations would be  qualified to run the                 
  raffles.    Representative  Bunde noted  that  the  original                 
  legislation was  crafted for  the Alaska  Fish and  Wildlife                 
  Safeguard  Association  (Safeguard) and  only  covered bison                 
  permits.     The   legislation  was   expanded   to  include                 
  competitive  auctions.  He  observed that  organizations can                 
  approach the Department of  Fish and Game with  proposals to                 
                                                                               
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  auction game.  The  Department of Fish and Game  will decide                 
  which proposal  is the most  feasible and lucrative  for the                 
  state  of Alaska.   He explained that  Safeguard could apply                 
  for additional raffles.                                                      
                                                                               
  In   response  to   a  question  by   Representative  Brown,                 
  Representative  Bunde  stated that  Safeguard  realized $3.0                 
  thousand dollars from their bison raffle.  He  stressed that                 
  the organization needs  $20.0 thousand dollars to  carry out                 
  their work.                                                                  
                                                                               
  Representative Brown referred  to the March 23,  1993 report                 
  by the Division of Legislative Audit.   The audit noted that                 
  Safeguard receives significant state support.   She observed                 
  that the report  recommends that the Department  of Fish and                 
  Game  divorce  itself  from  Safeguard  unless the  problems                 
  identified   in    the   audit   report    were   addressed.                 
  Representative Bunde  stated that it  was his  understanding                 
  that the problems listed in the audit have been addressed.                   
                                                                               
  Representative Brown  quoted the  audit:   "We believe  that                 
  this diversion of  monies from the  state General Fund to  a                 
  private corporation may violate the  state constitution.  It                 
  further  erodes the  legislature's  most significant  power,                 
  that    of    appropriation."        She   questioned    the                 
  constitutionality of  allowing  a  private  organization  to                 
  benefit from a state resource.                                               
                                                                               
  Representative  Bunde  stressed  the  beneficial  nature  of                 
  Safeguard in  assisting fish  and wildlife  protection.   He                 
  maintained   that   Safeguard   increases  the   enforcement                 
  capability  of  the  State  by  encouraging citizens  to  be                 
  involved.                                                                    
                                                                               
  In response to a question by Co-Chair Hanley, Representative                 
  Brown  acknowledged that  the  audit  did  not  specifically                 
  address the permits.   She emphasized that the state support                 
  to Safeguard  is not  through a  direct appropriation.   Co-                 
  Chair  Hanley  compared  the  situation  to that  of  gaming                 
  permits.    Representative Brown  pointed  out that  a state                 
  asset is being auctioned.  Co-Chair Hanley acknowledged that                 
  the  constitutional  question  needs to  be  addressed.   He                 
  stressed that the legislation addresses other issues.                        
                                                                               
  Representative  Therriault questioned  if a  permit to  hunt                 
  moose  would   be  considered  an   appropriation  of  state                 
  resources.  Representative Brown pointed out that the winner                 
  of the  raffle  receives a  free hunting  license and  tags.                 
  Representative Therriault responded that the winner has paid                 
  a fee in the cost of the raffle.                                             
                                                                               
  Representative  Therriault  asked   for  details   regarding                 
                                                                               
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  changes   made    by   the    House   Resource    Committee.                 
  Representative   Bunde  noted  that   the  definition  of  a                 
  qualified  organization  was  added and  the  State's  share                 
  changed from 50 to 90 percent.                                               
                                                                               
  Representative  Grussendorf  pointed   out  that  a  hunting                 
  license does not allow  an auction to the highest  bidder or                 
  the sell of  the meat harvested.   He expressed support  for                 
  the  concept of HB 59.   He questioned  if the Department of                 
  Fish  and  Game will  be  able  to monitor  the  hunts.   He                 
  observed  that bison  and musk  ox hunts  are not  generally                 
  available and would raise larger sums.                                       
                                                                               
  Representative Bunde  acknowledged that these  permits would                 
  be new but asserted that there  are precedents in Alaska and                 
  other  states.   He  explained that  the Governor  may issue                 
  special  hunting  licenses  to  visiting  dignitaries.    He                 
  emphasized that  most bidders would  be wealthy  individuals                 
  that   would  consider   their  participation   a  form   of                 
  philanthropy.   Representative Brown noted  that individuals                 
  living in and out-of-state could participate.                                
                                                                               
  Representative  Brown noted that  wolves would be classified                 
  as both big game animals and predators under separate pieces                 
  of pending legislation.   She questioned  how the status  of                 
  wolves would be classified.  Representative Bunde noted that                 
  if wolves are not a big game animal a tag cannot be issued.                  
                                                                               
  Representative  observed that  subsection  (c) would  exempt                 
  these  activities  from  AS.  05.15.   Brown  asked  why the                 
  raffles would be exempted from existing regulation for games                 
  of  chance and  skill under  the Department of  Commerce and                 
  Economic  Development.     She  questioned   why  regulatory                 
  oversight would  not be  maintained.   Representative  Bunde                 
  could not recall why subsection (c) was included.                            
                                                                               
  Representative Brown  expressed concern  that a  competitive                 
  auction or raffle could be issued to an organization without                 
  competition  from  other  organizations.    Co-Chair  Hanley                 
  referred to page  2, lines 10  and 11.   He noted that  "the                 
  department,  subject   to   regulations   adopted   by   the                 
  commissioner, may issue,  (a permit)  through a  competitive                 
  auction or raffle".   Representative  Bunde asserted that it                 
  is in the  Department of  Fish and Game's  best interest  to                 
  have competitive bids.                                                       
                                                                               
  WAYNE REGELIN, DIRECTOR, DIVISION OF WILDLIFE  CONSERVATION,                 
  DEPARTMENT  OF  FISH AND  GAME  noted that  current statutes                 
  allow one permit to be auctioned  from the Delta Bison herd.                 
  He observed  that Safeguard  is the  only organization  that                 
  currently qualifies  for this  permit issuance.   He  stated                 
  that this statute  is being expanded  by request from  other                 
                                                                               
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  groups.  He pointed  out that several groups use  raffles or                 
  auctions  of big  game  licenses to  raise  funds for  their                 
  organizations and to help wildlife management.                               
                                                                               
  Mr.  Regelin noted  that the  original bill allowed  a 50/50                 
  split between the  organizations and the Department  of Fish                 
  and Game.  He observed that federal law stipulates that only                 
  10 percent of the funds can go to a licensed vendor.  Ninety                 
  percent  of the funds must  go into the  Fish and Game Fund.                 
  He maintained  that the  Department will  establish specific                 
  regulations governing how the permits would be issued.                       
                                                                               
  Mr. Regelin noted that the judges allowed those convicted of                 
  a  fish  and game  violation to  either  make a  donation to                 
  Safeguard or write a check to the State.  The audit referred                 
  to  this  practice.   Mr.  Regelin noted  that  donations to                 
  Safeguard   in   lieu  of   a   fine  are   longer  allowed.                 
  Representative Brown  noted that the  Legislative Budget and                 
  Audit report references raffles by Safeguard on page 8.  She                 
  added  that  the  audit  also  points  to  free  advertising                 
  provided  to Safeguard by  the Department of  Fish and Game.                 
  Mr.  Regelin   maintained  that  these  problems  have  been                 
  resolved.    He  emphasized  that  Safeguard  is  a  private                 
  nonprofit organization  that is very beneficial  to wildlife                 
  management through enforcement.                                              
                                                                               
  Co-Chair  Foster questioned  if IRA Councils  would qualify.                 
  Mr. Regelin stated that a qualified organization refers to a                 
  nonprofit corporation established to  promote fish and  game                 
  law enforcement or  an organization  that is established  to                 
  promote  management of  hunted game species  and the  use of                 
  game  populations   for  hunting  and   that  complies  with                 
  applicable laws  governing activities under  subsection (b).                 
  He  did  not think  that  Native nonprofit  groups  would be                 
  covered.   He stated that Safeguard,  the Safari Club, North                 
  American Elk  Foundation and  the Wildlife Sheep  Foundation                 
  would  qualify.    Co-Chair  Foster  noted  that  Kawerak  a                 
  regional  Native nonprofit  corporation has  a branch  which                 
  cares for the local reindeer herd.   Mr. Regelin stated that                 
  the  Department  of Law  would  determine if  they  would be                 
  eligible.  He emphasized that organizations do not receive a                 
  large percentage of the proceeds.   Organizations do receive                 
  publicity from the raffles.                                                  
                                                                               
  In  response to a  question by Co-Chair  Foster, Mr. Regelin                 
  stated  that  the   Department  supports  the   legislation.                 
  Representative Bunde gave examples of  funds raised by other                 
  states.  He  noted that the  state of Montana raised  $789.0                 
  thousand dollars.                                                            
                                                                               
  Co-Chair  Foster asked  if  Mr. Regelin  foresaw  a musk  ox                 
  raffle in the  Nome area.   Mr. Regelin replied that  he did                 
                                                                               
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  not foresee a  musk ox  hunt in  the Nome area  due to  dual                 
  management with the federal government.   He emphasized that                 
  permits would be issued in areas where there is not a lot of                 
  competition.                                                                 
                                                                               
  In response to a question by Representative Grussendorf, Mr.                 
  Regelin noted that  the Department of  Fish and Game has  no                 
  authority over reindeer.   He noted  that there are musk  ox                 
  hunts in three locations in Alaska.                                          
                                                                               
  (Tape Change, HFC 96-26, Side 1)                                             
                                                                               
  Mr.  Regelin  stressed that  hunts  by nonresidents  must be                 
  guided.  He   explained that the  hunt would be included  in                 
  the guide's hunt limit.                                                      
                                                                               
  Representative Brown  questioned  how  the  current  process                 
  works and how  the program would  be expanded.  Mr.  Regelin                 
  noted  that  the  only  organization  that  qualifies  under                 
  current law is  Safeguard.  He stated  that regulations have                 
  not been established.                                                        
                                                                               
  In  response  to  a question  by  Representative  Brown, Mr.                 
  Regelin   reiterated   that   regulations  have   not   been                 
  implemented.    He  emphasized  that  the  organizations  in                 
  question  do have Alaskan branches.   He maintained that the                 
  Department  has  a   good  working  relationship   with  the                 
  organizations which would qualify.                                           
                                                                               
  Mr. Regelin explained  that the exemption in  subsection (c)                 
  was inserted at  the request of  the Department of  Commerce                 
  and Economic  Development.  Representative  Brown questioned                 
  the  rationale  for  the  exemption  from oversight  by  the                 
  Department  of  Commerce  and  Economic  Development.    Mr.                 
  Regelin could not respond.  He  stated that an  organization                 
  would  have  to  provide an  accounting  of  their expenses.                 
  Representative Brown restated that Safeguard would  be taken                 
  out from under the review of  the Department of Commerce and                 
  Economic Development.                                                        
                                                                               
  DWAYNE BUELL,  LOCAL  CHAIRMAN,  ALASKA  FISH  AND  WILDLIFE                 
  SAFEGUARD testified in support  of HB 59.  He  stressed that                 
  Safeguard has  been active  in promoting  fish and  wildlife                 
  enforcement  since  1989.    He  emphasized  that  Safeguard                 
  provides a 1-800  telephone number  that allows citizens  to                 
  report  illegal  activities.    He  stressed that  the  fine                 
  diversion activities referred  to in  the audit report  were                 
  stopped.  He observed  that Safeguard is unable to  make use                 
  of direct contributions which were given  out as prices.  He                 
  asserted that Safeguard has raised over $4.0 million dollars                 
  for the State through fines and confiscated property.                        
                                                                               
                                                                               
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  Mr. Buell noted  that a part-time  coordinator hired by  the                 
  Department of Fish and  Game worked with Safeguard.   Due to                 
  objections this position no longer works with Safeguard.  He                 
  stressed that the  Bison raffle does not  provide sufficient                 
  return for the  amount of work  required.  He observed  that                 
  the sale  of a  poster by  Safeguard and  advertised by  the                 
  Department of Fish and Game has also been discontinued.                      
                                                                               
  In response to a question by Representative Brown, Mr. Buell                 
  stated that Safeguard is not planning to expand their raffle                 
  activities.  He  theorized that the exemption  in subsection                 
  (c)   could   increase    their   competition   from   other                 
  organizations.    He  noted  that  organizations  requesting                 
  permits under AS 05.15 would have to be in existence for two                 
  years.                                                                       
                                                                               
  Co-Chair  Foster expressed support for HB  59.  He expressed                 
  concern that permittees be accompanied  by a licensed guide.                 
                                                                               
                                                                               
  Representative  Brown  noted   that  the  program  will   be                 
  expanded.    She  expressed support  for  regulation  by the                 
  Department  of Commerce and  Economic Development.  Co-Chair                 
  Hanley noted  that the legislation requires  that permittees                 
  be subject to regulations adopted by the commissioner of the                 
  Department of  Fish and Game.   He observed  that permittees                 
  would  have to  apply with  the  Department of  Commerce and                 
  Economic Development and  the Department of Fish and Game if                 
  subsection (c) is deleted.   Representative Brown  responded                 
  that there  needs to be someway to  account for the money to                 
  make sure that the State receives the  money it is due.  Co-                 
  Chair  Hanley pointed  out that  the Department of  Fish and                 
  Game   oversees  a   variety   of   licenses  and   permits.                 
  Representative Bunde expressed  confidence that the  State's                 
  interests will be  adequately safeguarded by the  Department                 
  of Fish and Game.                                                            
                                                                               
  Representative Mulder MOVED  to report CSHB 59  (RES) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There being NO OBJECTION, it  was                 
  so ordered.                                                                  
                                                                               
  CSHB 59 (FIN) was reported out of Committee with a "do pass"                 
  recommendation  and  with  a  fiscal   impact  note  by  the                 
  Department of Fish and Game.                                                 

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