Legislature(2003 - 2004)

03/17/2004 03:20 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 452-GUIDED SPORT FISHING                                                                                                   
                                                                                                                                
CHAIR ANDERSON announced  that the final order  of business would                                                               
be  HOUSE  BILL  NO.  452,  "An Act  relating  to  licensing  and                                                               
regulation  of  sport  fishing  services  operators  and  fishing                                                               
guides; and providing for an effective  date."  [In packets was a                                                               
proposed committee substitute, Version D.]                                                                                      
                                                                                                                                
Number 0250                                                                                                                     
                                                                                                                                
REPRESENTATIVE CHERYLL HEINZE,  Alaska State Legislature, sponsor                                                               
of HB  452, began by  crediting the  Alaska Department of  Fish &                                                               
Game (ADF&G)  with helping to craft  a good bill.   She explained                                                               
that  previously she'd  owned a  fishing and  guiding lodge  near                                                               
Lake  Creek  that employed  five  guides.   Currently,  the  only                                                               
information  provided to  ADF&G  is garnered  from sport  fishing                                                               
registrations, which  have no information  regarding catch.   She                                                               
said  fishing guides increased from  3,800 in 1998 up to 4,559 in                                                               
2003.   The  percentage of  nonresident fishing  guides has  been                                                               
increasing  as  well,  and the  average  percentage  of  resident                                                               
guides from 1998 to 2003 was 72 percent.  She told members:                                                                     
                                                                                                                                
     This bill established  mandatory reporting requirements                                                                    
     for all sport fishing  businesses and sets license fees                                                                    
     that cover  the cost of  the licensing program.   House                                                                    
     Bill  452  deals with  two  major  needs in  the  sport                                                                    
     fishing  guide  industry:    first   is  the  need  for                                                                    
     increased  information  gathering.    This  bill  would                                                                    
     provide the  Department of Fish and  Game comprehensive                                                                    
     information on the number of  fish caught, the location                                                                    
     of the catch, and number of boats used.                                                                                    
                                                                                                                                
     This  information   tool  helps  the   department  make                                                                    
     informed decisions  that will help protect  fish stocks                                                                    
     and their  habitats, and to maximize  their current and                                                                    
     future  yields.    This benefits  not  just  the  sport                                                                    
     fishing industry, but also ensures  that we fulfill our                                                                    
     constitutional mandate to  manage Alaska's resources to                                                                    
     their maximum sustained yield.                                                                                             
                                                                                                                                
Number 0404                                                                                                                     
                                                                                                                                
REPRESENTATIVE HEINZE continued:                                                                                                
                                                                                                                                
     The  second   part  of  the   bill  is  the   need  for                                                                    
     standardized  consumer safety.    By mandating  minimum                                                                    
     requirements  for sport  fishing guides  and operators,                                                                    
     such  as Red  Cross  first-aid  training and  liability                                                                    
     insurance, we  can be sure  that guides are  trained in                                                                    
     the  event  of  an  emergency and  that  consumers  are                                                                    
     covered under their insurance.                                                                                             
                                                                                                                                
     Thirdly,  consumer   confidence  is  improved   by  the                                                                    
     guarantee  of   certain  standards,   protections,  and                                                                    
     training  that their  guides and  operators will  have.                                                                    
     The sport fishing industry is  an important and driving                                                                    
     factor in Alaska's economy.   No one believes that more                                                                    
     than  I  do.    Such  a  vital  industry  needs  to  be                                                                    
     protected  and supported  in order  to  ensure that  it                                                                    
     remains that way.                                                                                                          
                                                                                                                                
Number 0463                                                                                                                     
                                                                                                                                
JON  BITTNER,  Staff  to Representative  Cheryll  Heinze,  Alaska                                                               
State Legislature, addressed the fees,  noting that there are two                                                               
separate  categories of  license proposed.   One  is for  a sport                                                               
guide operator,  a $100 fee,  and one  is an actual  sport guide.                                                               
If someone wants  both the guide and the  operator licenses, it's                                                               
still a flat  $100 fee; they aren't "stackable."   Discussing the                                                               
fiscal note from the Division of Sport Fish, he said:                                                                           
                                                                                                                                
     The total  operating expenditures for fiscal  year 2005                                                                    
     that would be incurred by  the increase of work brought                                                                    
     on by the extra reporting  that the division would have                                                                    
     to do is  roughly $345,000.  The revenue  brought in by                                                                    
     the fees from the  two separate categories of licensing                                                                    
     would  be  $355,000.    So  this  is  not  an  unfunded                                                                    
     mandate.                                                                                                                   
                                                                                                                                
MR.  BITTNER  concluded  there'll  be adequate  funding  for  the                                                               
increase in jobs, four full-time  employees and one part-time, as                                                               
well as the increase in  equipment needed to handle the increased                                                               
work.                                                                                                                           
                                                                                                                                
Number 0638                                                                                                                     
                                                                                                                                
JIM  PRESTON, Owner,  Big Jim's  Charters, a  fishing and  sight-                                                               
seeing operation that  operates out of Auke Bay,  began by saying                                                               
he wasn't certain Representative  Heinze had offered the proposed                                                               
CS.                                                                                                                             
                                                                                                                                
Number 0700                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GATTO  moved  to  adopt  the  proposed  committee                                                               
substitute (CS),  Version 23-LS1619\D,  Utermohle, 2/27/04,  as a                                                               
work draft.   There being no objection, Version D  was before the                                                               
committee.                                                                                                                      
                                                                                                                                
MR. PRESTON continued:                                                                                                          
                                                                                                                                
     That  version  came  as  a  result  of  many  operators                                                                    
     throughout   the  state   making  comments.   ...  They                                                                    
     responded  ... favorably.    This  legislation is  very                                                                    
     similar  to legislation  that was  here  in the  1990s;                                                                    
     [then-Representative  Alan   Austerman]  had  presented                                                                    
     this.   It actually  passed the House;  it had  gone to                                                                    
     the Senate  and, unfortunately, it died  in the Senate.                                                                    
     As a result of that,  ... regulations were implemented,                                                                    
     which basically are what we're living under now.                                                                           
                                                                                                                                
     For  saltwater guides,  the  regulations  that we  live                                                                    
     under is basically what  this committee substitute bill                                                                    
     is  about, that  is, that  we  have to  register as  an                                                                    
     operator, we  have to register  as a guide, we  have to                                                                    
     make reports through the logbooks.  ...  The difference                                                                    
     is that we are not  required by the regulations to have                                                                    
     an  insurance policy,  nor are  we required  to have  a                                                                    
     first-aid card  by the  state.   Of course,  anyone who                                                                    
     does operate  knows that the  Coast Guard  does require                                                                    
     that we have the first-aid certification.                                                                                  
                                                                                                                                
     For   many   years,   many  of   us   have   tried   to                                                                    
     professionalize our  industry.  It is  an industry that                                                                    
     is one of  the bright spots, I believe,  in the Alaskan                                                                    
     economy, and it  brings an awful lot of  money in here.                                                                    
     When we  go to the  Board of [Fisheries] and  argue our                                                                    
     case ... in  terms of allocation issues,  we keep being                                                                    
     told  the  same thing  over  and  over:   Go  back  and                                                                    
     regulate  yourselves.    Some   of  you  have  sat  and                                                                    
     listened to some of us  talk about moratoriums; some of                                                                    
     you have sat and listened  to us talk about other kinds                                                                    
     of issues.                                                                                                                 
                                                                                                                                
Number 0831                                                                                                                     
                                                                                                                                
MR. PRESTON continued:                                                                                                          
                                                                                                                                
     Not all,  but many, many operators  are very supportive                                                                    
     of  the committee  substitute for  this  as a  definite                                                                    
     step in  the right direction for  being self-regulated.                                                                    
     It would  do many things.   It would, for once  and for                                                                    
     all, list us  formally as a sport fishing  entity.  The                                                                    
     issue of  commercial fishing versus sport  fishing will                                                                    
     go  away with  this.    We'll be  licensed  as a  sport                                                                    
     fishing  entity, as  charter  operators,  as a  service                                                                    
     provider to  sport fishermen.   To me,  that in  and of                                                                    
     itself is worth  the $100 fee that I would  have to pay                                                                    
     as a combined operator and provider.                                                                                       
                                                                                                                                
REPRESENTATIVE GATTO  asked why  Mr. Preston  wasn't in  favor of                                                               
the original bill.                                                                                                              
                                                                                                                                
MR. PRESTON  said the number-one  objection was to  divulging the                                                               
confidential  lists of  clients and  their license  numbers.   He                                                               
said  there were  inconsistencies with  sport fishing  clubs, and                                                               
subsistence and  personal use fishing  versus sport  fishing, and                                                               
that these ambiguities were removed from [Version D].                                                                           
                                                                                                                                
Number 1084                                                                                                                     
                                                                                                                                
KELLY   HEPLER,  Director,   Division  of   Sport  Fish,   Alaska                                                               
Department of Fish  & Game, introduced deputy  director Rob Bentz                                                               
and  said they'd  listen  and  be available  for  questions.   He                                                               
informed  members  that  his department  strongly  supports  this                                                               
bill.                                                                                                                           
                                                                                                                                
Number 1150                                                                                                                     
                                                                                                                                
GEORGE PATTERSON, Owner, "Catchalot" Charters, testified as                                                                     
follows:                                                                                                                        
                                                                                                                                
     I completely  agree with  the bill  that Representative                                                                    
     Heinze has here.   I do have one concern  on the fee of                                                                    
     $100.  I  believe that you need a  nonresident fee such                                                                    
     as the  commercial fishing  crew have.   In  Alaska the                                                                    
     fee is $60  for resident and $180  for nonresident, and                                                                    
     I do believe  that the nonresident should  pay more for                                                                    
     their fishing fee.                                                                                                         
                                                                                                                                
     Another  ... item  I have  is:   How are  you going  to                                                                    
     enforce  this?   The public  safety, the  park rangers,                                                                    
     the  troopers, [and  the Alaska  Department of]  Fish &                                                                    
     Game are stretched to the limit right now. ...                                                                             
                                                                                                                                
     I would address this  to Representative Rokeberg there.                                                                    
     I  do believe  that  the sport  fishing license  should                                                                    
     have some real  meaning to it. ... It should  be set up                                                                    
     like  our real  estate  license here  in  the state  of                                                                    
     Alaska where  new folks going  into the  sports fishery                                                                    
     need to pass a test [at]  a certain level and some sort                                                                    
     of  a  continued education  where  they  ... get  their                                                                    
     Coast  Guard safety,  [and  the  Alaska Department  of]                                                                    
     Fish & Game can give regulation courses.                                                                                   
                                                                                                                                
Number 1320                                                                                                                     
                                                                                                                                
DALE BONDURANT,  Soldotna, said it  appears HB 452 is  an attempt                                                               
to  place  the  commercial  fishing   industry  within  the  same                                                               
constitutional protection  as the  sports fish  guiding industry.                                                               
However, he  finds that  the two industries  have been  proven by                                                               
the  Alaska  Supreme  Court  to  have  nothing  in  common.    He                                                               
indicated a court opinion said the following:                                                                                   
                                                                                                                                
     Admittedly,   there  is   a   difference  between   the                                                                    
     commercial  fisherman and  the professional  guide.   A                                                                    
     commercial fisherman takes his  catch before selling it                                                                    
     to  others  for  consumption  while a  guide  does  not                                                                    
     actually take  game or fish,  a privilege  reserved for                                                                    
     the  client.     We  view  this   as  an  insignificant                                                                    
     distinction that  does not remove the  (indisc.) guides                                                                    
     from the protection  under the common use  clause.  The                                                                    
     work  of a  guide is  so  closely tied  to the  initial                                                                    
     taker that there is  no meaningful basis distinguishing                                                                    
     between the  rights of the  taker under the  common use                                                                    
     clause.                                                                                                                    
                                                                                                                                
MR.  BONDURANT said  this clause  is contained  in Article  VIII,                                                               
Section 3  [of the state  constitution], Common Use,  which says,                                                               
"Wherever occurring  in their natural state,  fish, wildlife, and                                                               
waters  are  reserved  to  the  people  for  common  use."    Mr.                                                               
Bondurant concluded:                                                                                                            
                                                                                                                                
     I've  seen  all  this argument  about  "the  commercial                                                                    
     fishing commission would submit  their problems and the                                                                    
     guides would submit theirs."   I figured then that they                                                                    
     were in the wrong field to  that system.  I also oppose                                                                    
     any  additional fee  for nonresident  fishermen.   They                                                                    
     had  this   problem  with  commercial  fishing   and  I                                                                    
     understand that  Alaska's going  to have  to eventually                                                                    
     pay  $3   million  because   they  were   charging  the                                                                    
     commercial fishing people nonresident  license.  So I'm                                                                    
     against that.  This is  a common property and resource,                                                                    
     and I think it's open for everybody.                                                                                       
                                                                                                                                
Number 1562                                                                                                                     
                                                                                                                                
JOEL HANSON, The  Boat Company, noted that this company  is a 25-                                                               
year-old Alaska  corporation that operates  educational charters,                                                               
sightseeing and shore excursions, and  sport fishing.  He pointed                                                               
out  that four  categories of  concern  with this  bill had  been                                                               
outlined  in written  testimony he'd  provided.   [Those concerns                                                               
related  to new  licenses  and fees  without  new privileges  and                                                               
benefits;  the  "chain  of  guilt"  that  creates  liability  for                                                               
fishing  violations  committed  by  a  client;  the  unreasonable                                                               
burden to  "physically possess"  paperwork; and  the unreasonable                                                               
burden to uphold unreasonable recording requirements.]                                                                          
                                                                                                                                
Number 1687                                                                                                                     
                                                                                                                                
ROBERT  WARD,  Homer  Charter  Association,  concurred  with  the                                                               
testimony of Mr. Preston and said:                                                                                              
                                                                                                                                
     There  are two  of us  here representing  80 people  in                                                                    
     total. ... We would like  to see some adjustment on the                                                                    
     first  fine, the  first-offense  penalty.   At $500  it                                                                    
     seems like it's a little  bit too (indisc.).  We're not                                                                    
     dealing  with  a  resource  here;  we're  dealing  with                                                                    
     paperwork, strictly  administration.  Other  than that,                                                                    
     we  feel  that   we  can  support  the   bill  as  it's                                                                    
     substituted.                                                                                                               
                                                                                                                                
Number 1725                                                                                                                     
                                                                                                                                
TIM EVERS,  Deep Creek Charter  Boat Association,  testified that                                                               
he was in  accord with the previous testimony of  Mr. Preston and                                                               
Mr.  Ward.   He said  he  felt the  $500 fine  was excessive  and                                                               
should be reduced  to $200.  He also said  many of his membership                                                               
want the  fees for nonresidents  in the industry raised  over and                                                               
above those of the resident guides.                                                                                             
                                                                                                                                
Number 1785                                                                                                                     
                                                                                                                                
MARK HEM,  Owner, Hem Charters,  informed members that  he didn't                                                               
support  HB 452  because he  felt the  added burden  of fees  and                                                               
paperwork was excessive to operators.   He said he didn't believe                                                               
the  information  contained  in   the  required  paperwork  would                                                               
necessarily aid in  management or protection of  the fishery, and                                                               
he  expressed  concern about  this  bill's  giving the  Board  of                                                               
Fisheries additional authority.                                                                                                 
                                                                                                                                
CHAIR ANDERSON asked whether Mr. Hem had Version D.                                                                             
                                                                                                                                
MR. HEM  replied that he'd  just received  a copy and  hadn't had                                                               
time to look at it closely.                                                                                                     
                                                                                                                                
CHAIR ANDERSON asked  whether Mr. Hem could hold  off and testify                                                               
at the next hearing.                                                                                                            
                                                                                                                                
MR. HEM agreed to testify again.                                                                                                
                                                                                                                                
Number 1905                                                                                                                     
                                                                                                                                
ALAN LeMASTER,  Owner, Copper  River Salmon  Charters; Secretary,                                                               
Klutina River Association in the Copper Valley, testified:                                                                      
                                                                                                                                
     Last  Monday  the  Klutina   River  Association  had  a                                                                    
     lengthy discussion on HB 452  at our regular membership                                                                    
     meeting.    As  you  might  imagine,  the  concern  was                                                                    
     significant.  The objections were  many and the fear by                                                                    
     some is  that it will  only foster more  state control,                                                                    
     higher  costs,  greater  workload, with  little  or  no                                                                    
     return to those of us that are required to apply.                                                                          
                                                                                                                                
     Many of our members  expressed an understanding for the                                                                    
     reasons of the  ADF&G and have little  objection to the                                                                    
     support  of the  spirit of  the bill.   Most,  however,                                                                    
     expressed a fear that it  opens the door to the state's                                                                    
     ability to  scrutinize our books, thus  leaving us open                                                                    
     to  criticism,  regulation,   penalties,  fines,  fees,                                                                    
     burdensome control by the state.                                                                                           
                                                                                                                                
     Most  of the  objections  expressed  by the  membership                                                                    
     concern   an  inordinate   amount  of   record  keeping                                                                    
     required  and  fears  that   the  persons  outside  the                                                                    
     ADF&G's  "need  to  know" would  pirate  much  of  that                                                                    
     information, placing our businesses in jeopardy.                                                                           
                                                                                                                                
CHAIR ANDERSON asked if Mr. LeMaster was referring to Version D.                                                                
                                                                                                                                
MR. LeMASTER affirmed that and continued:                                                                                       
                                                                                                                                
     Additionally, the  fees suggested are only  a beginning                                                                    
     point.   Our fear  is that  all too  often we  see fees                                                                    
     like these  escalate to much  higher numbers in  only a                                                                    
     few short  years as the  costs to maintain  the program                                                                    
     increases.   A case in  point:  the DEC  [Department of                                                                    
     Environmental  Conservation] passed  regulations a  few                                                                    
     years  ago   that  required  user   fees  of   $50  for                                                                    
     inspections of  food establishments.  Now  that fee has                                                                    
     expanded to  $150 and, in  my case, they  are assessing                                                                    
     two  or  three different  fees  for  the same  business                                                                    
     because   we  have   little   differences  within   our                                                                    
     business.   So,  over  the years  the inspections  have                                                                    
     been   reduced  and,   in   some  cases,   discontinued                                                                    
     altogether,  and yet  the fees  go  up.   We call  that                                                                    
     double taxation.   In principle [that]  will, without a                                                                    
     doubt, happen  with the sports fishing  industry as the                                                                    
     agencies  learn  that  the  maintenance  costs  of  the                                                                    
     program  are  significant,  rather than  [those]  being                                                                    
     suggested in your fiscal notes.                                                                                            
                                                                                                                                
Number 2032                                                                                                                     
                                                                                                                                
MR. LeMASTER continued:                                                                                                         
                                                                                                                                
     Right now,  in order  for me  to put  my people  on the                                                                    
     rivers up  here in the Copper  Valley, I have to  buy a                                                                    
     business  license, a  Coast Guard  license;  I have  to                                                                    
     have  fishing  permits;  I  have  to  have  a  driver's                                                                    
     license; I  have to  have insurance; I  have to  have a                                                                    
     fishing  license and  a king  stamp; I  have to  have a                                                                    
     permit at  the local  store down  here; and  the guides                                                                    
     have to  have a  letter that shows  that they  work for                                                                    
     me.                                                                                                                        
                                                                                                                                
     There's about 10  or 12 things they have to  have.  And                                                                    
     after you compile all of  this information, ... what do                                                                    
     you  do about  the people  that aren't  being guided  -                                                                    
     which in our case in this  valley are at least as many,                                                                    
     if not  twice as  many, people as  are being  guided on                                                                    
     our rivers.   You're getting no  information from them,                                                                    
     so how  valid can all  of this information be  that you                                                                    
     compile, when  it's only a significantly  small portion                                                                    
     of  the total  amount that  you need  in order  to make                                                                    
     good decisions?   So  with that,  we as  an association                                                                    
     took a vote,  and it did not pass to  support this bill                                                                    
     at this time.                                                                                                              
                                                                                                                                
CHAIR ANDERSON announced that HB 452 would be held over,                                                                        
allowing for additional testimony.                                                                                              

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