Legislature(2005 - 2006)CAPITOL 124

04/13/2005 08:30 AM House FISHERIES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 241 BOARD OF FISHERIES CONFLICTS OF INTEREST TELECONFERENCED
Moved CSHB 241(FSH) Out of Committee
*+ HB 252 SPORT FISHING FACILITY REVENUE BONDS TELECONFERENCED
Moved Out of Committee
Bills Previously Heard/Scheduled
HB 241-BOARD OF FISHERIES CONFLICTS OF INTEREST                                                                               
                                                                                                                                
9:33:46 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced  that the next order  of business would                                                               
be  HOUSE BILL  NO. 241,  "An  Act relating  to participation  in                                                               
matters before  the Board of  Fisheries by members of  the board;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
9:34:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON, sponsor of HB 241, explained:                                                                            
                                                                                                                                
     [The bill] implements changes  recommended by the Joint                                                                    
     Salmon Industry  Task Force to  the Board  of Fisheries                                                                    
     conflict of  interest policy.   The Board  of Fisheries                                                                    
     is not as  effective as it should be  when members with                                                                    
     the  most knowledge  and  experience  in certain  areas                                                                    
     must excuse themselves when those issues arise.                                                                            
                                                                                                                                
     The Board of  Fisheries is a lay board  and it consists                                                                    
     of members  of various backgrounds.   Some are involved                                                                    
     in   commercial   fishery,    some   are   recreational                                                                    
     fishermen, some  are fishing  lodge owners,  and others                                                                    
     are just  public members with  an interest  in fishing.                                                                    
     Under  current policy  the Department  of  Law is  very                                                                    
     conservative  in  their  recommendation of  who  should                                                                    
     participate, and  when there's  even a perception  of a                                                                    
     conflict,  they  get  really  nervous  about  this  and                                                                    
     recommend   that  their   members  excuse   themselves,                                                                    
     therefore avoiding any possible litigation at all.                                                                         
                                                                                                                                
The committee took an at-ease from 9:35:39 AM to 9:36:32 AM.                                                                
                                                                                                                                
REPRESENTATIVE WILSON  returned to  HB 241.   She  commented that                                                               
members   are   appointed  to   the   board   because  they   are                                                               
knowledgeable in particular areas,  but currently if there's even                                                               
the perception that  a member might have a  conflict of interest,                                                               
that member  can't vote or  even discuss  the topic.   She stated                                                               
that  HB 241  would require  that members  declare a  conflict of                                                               
interest,  but then  would  still be  allowed  to participate  in                                                               
discussion and voting.  She continued:                                                                                          
                                                                                                                                
     This bill  now requires the Board  of Fisheries members                                                                    
     to disclose a  personal or a financial  interest on the                                                                    
     record  before  participating  in  matters  before  the                                                                    
     board.  If  they disclose a conflict  of interest, this                                                                    
     would not disqualify a  board member from participating                                                                    
     in and voting on the matters before the board.                                                                             
                                                                                                                                
9:38:48 AM                                                                                                                    
                                                                                                                                
STEVEN DAUGHERTY,  Assistant Attorney General,  Alaska Department                                                               
of Law (DOL), stated that the  DOL has proposed an amendment that                                                               
would address a few technical issues.  He said:                                                                                 
                                                                                                                                
     We believe  that the intent of  the bill is to  allow a                                                                    
     board  member to  participate in  a  matter before  the                                                                    
     board  after disclosure  despite having  a personal  or                                                                    
     financial interest  in a matter  before the  board, not                                                                    
     as  a broad  exemption from  the  Ethics Act.   And  in                                                                    
     order to accomplish  this and make sure  that the board                                                                    
     members can  in fact participate,  we need to  add some                                                                    
     additional language to the bill.                                                                                           
                                                                                                                                
9:40:19 AM                                                                                                                    
                                                                                                                                
MR. DAUGHERTY continued:                                                                                                        
                                                                                                                                
     There are  two problems with the  original language [of                                                                    
     HB  241].    First,   there  is  an  express  exemption                                                                    
     provided from AS  39.52.120(b)(3); that's the provision                                                                    
     regarding use  of state time, property,  equipment, and                                                                    
     facilities.   But  there is  no  exemption for  (b)(4),                                                                    
     which is  the taking or withholding  of official action                                                                    
     in  order  to  affect  a matter  in  which  the  public                                                                    
     officer has a  personal or financial interest.   And in                                                                    
     fact,  most  controversies  involving the  board  would                                                                    
     involve  (b)(3),  not (b)(4).    So  we think  that  an                                                                    
     express revision  regarding (b)(4)  is needed.   And we                                                                    
     have suggested language to that effect....                                                                                 
                                                                                                                                
9:41:21 AM                                                                                                                    
                                                                                                                                
MR. DAUGHERTY stated  that the second issue of concern  to DOL is                                                               
the  last  sentence on  page  2,  lines  9-10, which  reads,  "AS                                                               
39.52.240 does not apply to  matters related to this subsection."                                                               
He said that  AS 39.52.240 is a section that  allows the board to                                                               
ask  for advisory  opinions.    He stated  that  DOL thinks  that                                                               
cutting off the board's access to advisory opinions is very                                                                     
problematic.  He continued:                                                                                                     
                                                                                                                                
     The ethics  act will  still be  applicable.   There are                                                                    
     some specific exemptions and they  will be able to vote                                                                    
     despite  a personal  or financial  interest, but  there                                                                    
     are  a number  of other  areas of  the ethics  act that                                                                    
     will still  be applicable,  such as those  dealing with                                                                    
     improper  guests,  [AS  39.52.130];  improper  use  and                                                                    
     disclosure  of  information, [AS  39.52.140];  improper                                                                    
     representation,   [AS    39.52.160];   declaration   of                                                                    
     potential violations,  [AS 39.52.220] -  although there                                                                    
     will be a  partial exemption provided for  that by this                                                                    
     bill -  and other sections  of [AS 39.52.120],  such as                                                                    
     those   dealing  with   seeking  other   employment  or                                                                    
     contracts,   accepting  or   receiving  or   soliciting                                                                    
     compensation   for   official   duties,   coercion   of                                                                    
     subordinates for political purposes.   Those issues may                                                                    
     still  arise  from  time  to time,  and  in  fact,  the                                                                    
     provisions regarding  gifts frequently arises  with the                                                                    
     board.   And we think  that it's important  to preserve                                                                    
     the  board's ability  to  seek  advisory opinions  when                                                                    
     issues  arise, even  concerning issues  that they  have                                                                    
     received an exemption  for under this bill.   The board                                                                    
     may  still  want an  opinion  from  the [DOL]  just  to                                                                    
     provide  them with  some  assurance  that what  they're                                                                    
     doing is right, and so  ... when concerns are expressed                                                                    
     to them they  can pass it off on the  [DOL] rather than                                                                    
     having to  deal with  constituents who are  angry about                                                                    
     their participation.                                                                                                       
                                                                                                                                
MR. DAUGHERTY concluded that DOL would like to see that sentence                                                                
removed from the bill.                                                                                                          
                                                                                                                                
9:43:55 AM                                                                                                                    
                                                                                                                                
MR. DAUGHERTY clarified that Amendment 1, labeled 24G-1,                                                                        
4/8/2005, (1:15 PM), would say:                                                                                                 
                                                                                                                                
     Page 2, lines 9-10                                                                                                         
     Delete "AS 39.52.240 does not  apply to matters related                                                                    
     to this subsection."                                                                                                       
     Insert  "Participation in  a  matter  before the  board                                                                    
     after  disclosure is  not considered  to  be taking  or                                                                    
     withholding  official  action  in  order  to  affect  a                                                                    
     matter in  which the public  officer has a  personal or                                                                    
     financial interest under (b)(4) of this section."                                                                          
                                                                                                                                
9:45:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON moved to adopt Amendment 1, labeled 24G-1,                                                                
4/8/2005, (1:15PM).  There being no objection, Amendment 1 was                                                                  
adopted.                                                                                                                        
                                                                                                                                
9:45:44 AM                                                                                                                    
                                                                                                                                
PAUL  SHADURA,   Kenai  Peninsula  Fishing   Association  (KPFA),                                                               
testified  in support  of  HB 241.    He said  that  the bill  is                                                               
crucial  to  allowing  the  Board   of  Fisheries  to  deliberate                                                               
important  issues without  political  interference.   He  pointed                                                               
out:                                                                                                                            
                                                                                                                                
     Current   board  policy   requires  that   all  adopted                                                                    
     proposals must  have four votes  of the board  in order                                                                    
     to  pass.    No  debate, argument,  or  information  is                                                                    
     allowed by  an individual who  are conflicted out.   No                                                                    
     system for  defining conflict is in  policy except that                                                                    
     the  chair would  rule on  a conflicted  issue for  the                                                                    
     individual  if requested  or contested.   This  is very                                                                    
     awkward  and  allows  for  definition  with  subjective                                                                    
     reasoning.   Our  experience with  board members  since                                                                    
     statehood is that decisions by  the board requires much                                                                    
     personal  knowledge  by  every  board  member  that  is                                                                    
     available.   It is  expertise that  prompts individuals                                                                    
     to  volunteer  their  services to  the  people  of  the                                                                    
     state.                                                                                                                     
                                                                                                                                
MR. SHADURA continued:                                                                                                          
                                                                                                                                
     Current  interpretation  of  conflict seems  to  define                                                                    
     commercial  fishing  as having  more  of  a benefit  to                                                                    
     individual board  members than commercial  guiding, yet                                                                    
     definition  in statutes  that address  this legislative                                                                    
     conduct states that even nonmonetary  or benefits to an                                                                    
     individual can  also be  implied as  a conflict.   This                                                                    
     bill allows the affected users  in the state a fair and                                                                    
     equal   voice   to   represent   the   issues   openly,                                                                    
     thoroughly,  and fairly.  ... It  is our  ardent belief                                                                    
     that a good board is  one that takes into consideration                                                                    
     all  available information  and discusses  it from  all                                                                    
     aspects of the  problem, and that this  allows for more                                                                    
     temperate and long term  decision making, something the                                                                    
     current [Board  of Fisheries]  does not  incorporate at                                                                    
     present.                                                                                                                   
                                                                                                                                
9:48:57 AM                                                                                                                    
                                                                                                                                
ROLAND  MAW,   Executive  Director,   United  Cook   Inlet  Drift                                                               
Association  (UCIDA), stated  that he  is a  commercial fisherman                                                               
and  he supports  HB 241.    He commented,  "These fisheries  are                                                               
getting very  complicated and  I think require  some of  the best                                                               
discussion and  analysis and participation  that we can  bring to                                                               
that as  citizens, and removing  any barriers that  would prevent                                                               
that participation  and that discussion,  I think, is  a positive                                                               
thing...."                                                                                                                      
                                                                                                                                
9:50:16 AM                                                                                                                    
                                                                                                                                
CARL CROME,  stated that he  has been  a fisherman for  40 years,                                                               
and is a seiner, a gillnetter, and a troller.  He said:                                                                         
                                                                                                                                
     Me and  mine are very  unhappy with our  people getting                                                                    
     conflicted  out at  the board  meetings.   It's already                                                                    
     lopsided in the  sport fish favor, and  when our people                                                                    
     are ...  conflicted out  it makes us  very unhappy.   I                                                                    
     don't  have  to  remind  you  that  we're  the  largest                                                                    
     employer in the state, that  we pay more taxes than any                                                                    
     industry  except the  oil companies,  and I  suppose we                                                                    
     have  a lot  more votes  than  any other  too. ...  Our                                                                    
     people need to  stay in there.   Because somebody knows                                                                    
     something is  not a good  reason to conflict  them out.                                                                    
     And we feel this is very unfair.                                                                                           
                                                                                                                                
9:51:39 AM                                                                                                                    
                                                                                                                                
DON  FOX, Secretary,  Kodiak Fish  and  Game Advisory  Committee,                                                               
noted  that he  represents  the advisory  committee  to Board  of                                                               
Fisheries.   He also  stated that he  is a  commercial fisherman.                                                               
He testified in support of HB 241.  He remarked:                                                                                
                                                                                                                                
     The governor  appoints these  people because  they have                                                                    
     this  expertise in  these areas,  and they're  not even                                                                    
     allowed to  deliberate or  vote, and  ... I  think what                                                                    
     applies to  the legislature should apply  to the [Board                                                                    
     of  Fisheries].    These  people   need  to  put  their                                                                    
     knowledge and expertise to use.                                                                                            
                                                                                                                                
9:52:29 AM                                                                                                                    
                                                                                                                                
ART NELSON,  Chair, Board of  Fisheries, testified in  support of                                                               
HB 241.   He said the he'd  like to comment on  two general areas                                                               
where the conflict of interest  regulations have been problematic                                                               
for the board.  He said:                                                                                                        
                                                                                                                                
     The  first one  is  the difficulties  that it  presents                                                                    
     oftentimes  with the  operation  of the  board and  our                                                                    
     functioning and our deliberations.   As the chairman of                                                                    
     the board,  I'm kind  of responsible  to be  the ethics                                                                    
     supervisor  for  all  the members,  and  so  of  course                                                                    
     before  each  meeting  I  go   around  to  the  various                                                                    
     members,  particularly those  that  may have  conflicts                                                                    
     arising with  the different meetings  we have  ahead of                                                                    
     us and ...  those conflicts can be  either financial or                                                                    
     personal  in  nature,  and   can  be  interpreted  very                                                                    
     broadly. ... Oftentimes  even if there's going  to be a                                                                    
     perceived   conflict  that   we  are   advised  to   be                                                                    
     conservative in that  and ... it's no  offense meant to                                                                    
     the [DOL]; it's  their job to be  conservative and make                                                                    
     our decisions be not only  legally valid but defensible                                                                    
     in  court.  ...  The  board spends  upwards  of  40  or                                                                    
     sometimes  more   days  per  year  in   our  regulatory                                                                    
     meeting, and  the last thing  I want to have  happen is                                                                    
     ... having an  extensive regulation that took  a lot of                                                                    
     time to put  together be struck down  because we failed                                                                    
     to follow the letter of the ethics rules.                                                                                  
                                                                                                                                
MR. NELSON continued:                                                                                                           
                                                                                                                                
     What's  also  problematic  ...  is  the  potential  for                                                                    
     losing a  board member due  to a conflict  of interest.                                                                    
     We're a seven-member board, and  regardless of how many                                                                    
     board  members  are  present  and  participating.    So                                                                    
     whether  there's absences  and/or conflicts,  we always                                                                    
     still  have to  have four  votes to  carry any  motion.                                                                    
     And so  especially if it's  compounded with  an absence                                                                    
     by  another board  member, a  lot of  times it  becomes                                                                    
     very difficult for us to take regulatory action.                                                                           
                                                                                                                                
MR. NELSON  noted that  some well-qualified  people are  not even                                                               
interested in being on the  board because they know they wouldn't                                                               
be allowed to vote on important matters.                                                                                        
                                                                                                                                
9:56:43 AM                                                                                                                    
                                                                                                                                
JERRY McCUNE,  Lobbyist, United Fisherman of  Alaska (UFA), noted                                                               
that UFA submitted a letter in support  of HB 241 which is in the                                                               
committee  packet.   He reiterated  that  voting proceedings  are                                                               
difficult  for  the  board  if  some of  the  board  members  are                                                               
conflicted  out.    He  also   opined  that  it  is  unfair  that                                                               
commercial  fishermen are  conflicted out  more often  that lodge                                                               
owners.                                                                                                                         
                                                                                                                                
9:57:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HARRIS commented:                                                                                                
                                                                                                                                
     Why would you want to be  on the Board of Fisheries ...                                                                    
     if you  didn't have an  interest in the  subject matter                                                                    
     being  displayed in  front of  you?   And obviously  if                                                                    
     you're  someone  representing commercial  fishing,  for                                                                    
     instance,...  you're probably  appointed to  bring that                                                                    
     point of view to the board.   And if you're not allowed                                                                    
     to vote on the [issue] when  it comes up, what good are                                                                    
     you?                                                                                                                       
                                                                                                                                
REPRESENTATIVE  HARRIS compared  the  situation to  being in  the                                                               
legislature; representatives are elected  to bring their personal                                                               
viewpoints to the discussion.                                                                                                   
                                                                                                                                
CO-CHAIR LEDOUX commented that she  had received a lot of written                                                               
testimony from her constituents in Kodiak in favor of the bill.                                                                 
                                                                                                                                
9:59:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ELKINS  moved to report  HB 241 as amended  out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  241(FSH)  was                                                               
reported from the House Special Committee on Fisheries.                                                                         
                                                                                                                                

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