Legislature(1997 - 1998)

04/08/1997 01:12 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 CSSB 7(RLS) am - HUNTING SPORT FISH TRAPPING FEES/LICENSES                  
                                                                               
 Number 0278                                                                   
                                                                               
 CO-CHAIRMAN OGAN announced the next order of business was CS for              
 Senate Bill No. 7(RLS) am, "An Act reducing certain resident sport            
 fishing, hunting, and trapping license fees, increasing certain               
 nonresident sport fishing license and tag fees, and relating to               
 nonresident sport fishing and hunting licenses and tags; and                  
 providing for an effective date."  The version before the committee           
 was HCS CSSB 7(FSH).                                                          
                                                                               
 Number 0321                                                                   
                                                                               
 KAREN BRAND, Legislative Assistant to Senator Dave Donley,                    
 presented the sponsor statement on his behalf.  She said it is not            
 a new concept; Senator Donley had introduced similar legislation              
 two years before, which had numerous hearings in the Senate                   
 Resources Committee.                                                          
                                                                               
 MS. BRAND explained that the bill slightly increases nonresident              
 sport fish license fees.  It also increases the nonresident annual            
 sport fish license from $50 to $150; for this, it restricts                   
 purchase to nonresidents involved in a commercial fishery,                    
 possessing a commercial deck hand license or having a limited entry           
 permit.  In addition, it slightly decreases resident sport fish               
 license combination fees, resulting in less funds going back to               
 vendors and less paperwork for the department.                                
                                                                               
 CO-CHAIRMAN HUDSON asked why it was introduced.                               
                                                                               
 Number 0537                                                                   
                                                                               
 MS. BRAND responded that Senator Donley had been tracking this                
 issue for many years.  She noted that packets include articles                
 referring to sting operations by the Division of Fish and Wildlife            
 Protection on the Kenai Peninsula and around the state, relating to           
 increased numbers of nonresidents who sport fish and then                     
 commercially process that fish for sale.  One article refers to a             
 couple who smoked salmon and then sold it at a flea market in the             
 Lower 48 to help pay for their annual trip to Alaska.  Although the           
 problem is not widespread, it is increasing.  This bill addresses             
 some of that misuse of Alaska's sport fish resources.                         
                                                                               
 Number 0613                                                                   
                                                                               
 CO-CHAIRMAN HUDSON suggested as a result, people wishing to stay              
 all summer would have to buy a license every other week.                      
                                                                               
 MS. BRAND replied that those not involved in a commercial fishery,            
 and not deck hands nor holders of limited entry permits, would be             
 required to purchase a license every 14 days; that was the longest            
 license they could purchase.  It would create somewhat of a paper             
 trail for enforcement officers.                                               
                                                                               
 Number 0681                                                                   
                                                                               
 CO-CHAIRMAN HUDSON inquired about the net change in revenues.                 
                                                                               
 MS. BRAND referred to the fiscal notes.  She advised that there is            
 uncertainty over how many people will purchase each type of                   
 license.  The best guess is an additional $4.5 million in sport               
 fish revenues, to be deposited into the fish and game fund.                   
                                                                               
 Number 0742                                                                   
                                                                               
 REPRESENTATIVE GREEN asked whether the current sport fish license             
 fee is still $10.                                                             
                                                                               
 MS. BRAND affirmed it is $10, unchanged by this bill.                         
                                                                               
 Number 0769                                                                   
                                                                               
 REPRESENTATIVE GREEN referred to testimony in committee the                   
 previous week by George Utermohle, Legislative Counsel.                       
 Representative Green said for a 14-day license, there would be a              
 five-fold difference between resident and nonresident licenses.  He           
 expressed concern about whether this would pass muster, not that he           
 opposes it.                                                                   
                                                                               
 MS. BRAND replied this has come up before.  The "magic number" is             
 a three-to-one ratio for commercial license fees.  However, this is           
 for sport fish, which is "want-based."                                        
                                                                               
 Number 0893                                                                   
                                                                               
 REPRESENTATIVE GREEN recalled that Mr. Utermohle had indicated                
 commercial activity affects a person's livelihood and therefore               
 requires some upper limit.  He questioned whether an increase from            
 three-to-one to twenty-to-one might not still be a problem.  He               
 again advised he was not passing judgment on it.                              
                                                                               
 MS. BRAND agreed there is a difference in ratios studied for                  
 constitutionality for commercial activities.  She believes in one             
 state, a ten-to-one ratio for nonresident-versus-resident sport               
 fish license fees had been held constitutional.                               
                                                                               
 Number 0981                                                                   
                                                                               
 REPRESENTATIVE GREEN referred to the fiscal note and increased                
 funding.  He asked whether that took into account additional                  
 paperwork for repeated licenses.                                              
                                                                               
 MS. BRAND did not recall specific comments about that.  She advised           
 that an ADF&G representative was present.                                     
 Number 1015                                                                   
                                                                               
 REPRESENTATIVE BARNES expressed concern over the bill.  She cited             
 her own children as an example.  Previous residents, if they lived            
 outside Alaska and visited for the whole summer, they would have to           
 buy repeated licenses.  She believes that is wrong.  She suggested            
 trying to solve one problem may create other, bigger problems.                
                                                                               
 Number 1065                                                                   
                                                                               
 CO-CHAIRMAN HUDSON asked what the response had been from the guided           
 sport fish industry.                                                          
                                                                               
 MS. BRAND explained there had been provisions in the previous SB
 128 dealing with hunting.  There had been a lot of testimony from             
 both hunting and sport fishing guides on that.  This year, all                
 those hunting issues had been taken out.  The ADF&G had worked with           
 guides to help get the legislation to a point where guides could be           
 satisfied with it.  She said several guides on the Kenai River had            
 indicated they were happy to have the new seven-day license in                
 there.                                                                        
                                                                               
 Number 1129                                                                   
                                                                               
 CO-CHAIRMAN HUDSON asked whether the guided sport input on this               
 version has been supportive.                                                  
                                                                               
 MS. BRAND said there had either been no comment or no stated                  
 opposition.                                                                   
                                                                               
 Number 1184                                                                   
                                                                               
 REPRESENTATIVE GREEN reported that he had heard from two or three             
 sport fish guides who would prefer the full-season license.  He               
 offered to provide their names, if necessary.  He noted that it was           
 not a consensus opinion.                                                      
                                                                               
 Number 1219                                                                   
                                                                               
 DALE BONDURANT testified via teleconference from Kenai, saying he             
 does not think this is fair.  He suggested if Representative                  
 Green's figures were "crunched" further, on a per-day basis it                
 would be a 90-to-one ratio.  For combination licenses, a                      
 nonresident would pay 25 or 30 times as much as a resident,                   
 depending on the license.                                                     
                                                                               
 MR. BONDURANT indicated nonresidents pay 85 percent of the total              
 cost of management of sport fisheries.  Furthermore, this                     
 presupposes dishonesty by nonresident noncommercial fishermen and             
 honesty by nonresident commercial fishermen.  The latter have the             
 same opportunity to run cottage industries.  Mr. Bondurant believes           
 this is another attempt to bash visitors.  He asked whether anyone            
 had thought about military veterans who visit Alaska.  He suggested           
 nonresidents, who furnish more funds than residents, should perhaps           
 even get their licenses for less money.                                       
                                                                               
 CO-CHAIRMAN OGAN recognized the arrival of Senator Donley, sponsor.           
                                                                               
 Number 1388                                                                   
                                                                               
 CO-CHAIRMAN HUDSON referred to the impact of denying an annual                
 license.  He asked how Senator Donley envisions long-term visitors            
 handling this.  For example, would a visitor to the Kenai River               
 periodically go to Kenai or Soldotna to buy a new license?                    
                                                                               
 SENATOR DAVE DONLEY, sponsor, said that was one reason they had not           
 sought to amend the one-day license, which costs $10.  He believes            
 that is the best way out for nonresidents who stay in Alaska for a            
 long time.                                                                    
                                                                               
 [Co-Chairman Hudson chairing, as Co-Chairman Ogan left the room]              
                                                                               
 Number 1449                                                                   
                                                                               
 REPRESENTATIVE BARNES restated her earlier comments for Senator               
 Donley's benefit.  She concluded by saying although she understands           
 the goal, this is overkill, especially for former residents.                  
                                                                               
 SENATOR DONLEY replied that he also has relatives who want to                 
 visit.  However, he believes that is a small percentage in the                
 overall scheme.  He further believes nonresident fishing license              
 fees should not be crafted to address their relatives.  He                    
 expressed concern over commercial harvesting under a sport fish               
 license.  He said the good news is that fees go towards developing            
 the same resource that benefits purchasers.                                   
                                                                               
 Number 1560                                                                   
                                                                               
 REPRESENTATIVE BARNES asked how nonresident military is handled.              
                                                                               
 SENATOR DONLEY said the existing military scheme remains the same.            
                                                                               
 Number 1574                                                                   
                                                                               
 REPRESENTATIVE GREEN advised Senator Donley of earlier discussion             
 on fee ratios and asked whether he believes a twenty-to-one ratio             
 will stand muster.                                                            
                                                                               
 SENATOR DONLEY explained there is U.S. Supreme Court case law on              
 the subject.  The standard for commercial operations is between               
 three and four times as great for nonresidents over residents; that           
 falls under the commerce clause of the U.S. constitution, and there           
 are many more restrictions applying to commerce between states.               
 However, that clause does not apply to sport fish, which falls                
 under the privileges and immunities clause and does not rise to the           
 same level of scrutiny for discrimination between residents and               
 nonresidents as do more crucial elements in people's lives.                   
 Senator Donley advised that the ten-to-one ratio for the                      
 nonresident annual option under this legislation has been held by             
 the U.S. Supreme Court to be constitutional in other cases.                   
 Therefore, that is the usual standard he himself follows.                     
                                                                               
 [Co-Chairman Ogan returned]                                                   
                                                                               
 Number 1695                                                                   
                                                                               
 SENATOR DONLEY said in past years, there had been the argument,               
 "We'll wait until the commercial case was done because somehow                
 they're linked, they're related."  He continued, "And we won the              
 commercial case this year.  And that was a three- or four-to-one              
 ratio, and we prevailed in that."  He said case law from other                
 states indicates where a three- or four-to-one ratio is allowed               
 commercially, they have allowed a ten-to-one ratio noncommercially.           
                                                                               
 Number 1717                                                                   
                                                                               
 REPRESENTATIVE GREEN suggested while this would increase fees for             
 people staying and canning salmon, for example, it would also                 
 penalize people such as Representative Barnes had mentioned.  He              
 suggested the possibility of changing the amount of processing                
 allowed for sport-caught fish, rather than changing the license.              
                                                                               
 SENATOR DONLEY replied that in working on this bill over the years,           
 he has frequently heard that the Board of Fisheries will deal with            
 this problem.  However, as indicated in a recent newspaper article            
 in committee packets, the board declined this year to address the             
 issue.  He said the board had looked extensively at punch cards and           
 bag limits but had been unable to come up with a plan they like.              
 "I was hoping they would do something," he stated.  "Frankly, if              
 the fish board would have acted, and come up with some alternative            
 plan, I probably would have been supportive to having just an                 
 annual license available for everybody that's a nonresident in                
 here.  But since they failed to do anything along those lines, I              
 still believe that limiting it to making people buy a series of 14-           
 day licenses."  He believes the series of 14-day licenses provides            
 a tool to examine whether people are habitually buying those,                 
 raising a red flag to perhaps inspect what those people are doing.            
                                                                               
 Number 1878                                                                   
                                                                               
 REPRESENTATIVE GREEN asked how anyone would know people were doing            
 that if licenses were purchased in different locations.                       
                                                                               
 SENATOR DONLEY replied that he believes it can be developed as a              
 tool.  He said clearly, at the end of the first year, the pattern             
 of purchase would be identifiable.                                            
                                                                               
 SENATOR DONLEY said the most difficult question has been whether to           
 have an annual nonresident license.  He indicated the section on              
 page 2, linking sport licenses to commercial ones, is an effort to            
 coordinate with legislation introduced by Representative Austerman.           
 If that legislation does not pass, Senator Donley would support               
 removing the exceptions from his bill, which would make it much               
 cleaner.  Another option would be to say everyone may get a                   
 nonresident license for $150; however, that loses the tracking                
 advantage and possible development of an enforcement tool.                    
                                                                               
 Number 1933                                                                   
                                                                               
 CO-CHAIRMAN OGAN advised that no one from the Division of Fish and            
 Wildlife Protection was present.  He asked whether Senator Donley             
 knew that division's position on the bill.                                    
                                                                               
 SENATOR DONLEY responded that the division had acknowledged over              
 the years that this is a problem, and they had run a sting                    
 operation on the Kenai River relating to this.   However, they do             
 not believe allowing a maximum of 14 days per license would be                
 useful to them, nor do they endorse that.  "I think we were all               
 hoping the fish board would address it with some sort of bag limit            
 or punch card, and they just haven't done it," he added.                      
                                                                               
 Number 1986                                                                   
                                                                               
 REPRESENTATIVE JOULE said he was not sure yet whether he supports             
 the bill.  The way the legislature is proposing to cut the budget,            
 specifically as relates to fish and game enforcement, he wonders              
 how that will impact continued efforts to enforce these kinds of              
 operations.  He asked whether other possibilities for getting at              
 people marketing Alaskan fish had been looked into, such as fines             
 or other incentives.                                                          
                                                                               
 SENATOR DONLEY replied that he believes this bill more accurately             
 adjusts nonresident sport fishing fees to where they should be.               
 That is the bottom line.  Denying annual sport fish licenses has              
 the extra benefit of possibly creating an enforcement or assessment           
 tool.  Although money generated by the bill cannot be used directly           
 for enforcement, it can be used for enhancement of the fishery for            
 sport fish projects.  He stated that this money goes into a fund to           
 be used for that.  This would generate additional fees to be used             
 for those kinds of projects.                                                  
                                                                               
 Number 2093                                                                   
                                                                               
 GERON BRUCE, Legislative Liaison, Office of the Commissioner,                 
 Department of Fish and Game (ADF&G), came forward to testify.  The            
 ADF&G had been discussing this bill with Senator Donley since first           
 introduced a year or two ago.  After working to narrow their                  
 differences, one major difference remains:  The ADF&G wants an                
 annual nonresident license available for purchase by any                      
 nonresident.  The three categories of concern are family members              
 coming for an extended stay; seasonal workers; and new residents              
 moving to the state in the spring or summer, who otherwise would              
 have to remain an entire year before being able to purchase an                
 annual license.  Therefore, the ADF&G is asking the committee to              
 amend the bill to provide a general, annual nonresident sport                 
 fishing license for $100 to $125.  Mr. Bruce advised that the price           
 is not as big an issue as availability.                                       
                                                                               
 MR. BRUCE agrees the proposed fee schedule is not unfair.  The                
 ADF&G further supports raising fees for long-term licenses rather             
 than short-term ones.                                                         
                                                                               
 Number 2235                                                                   
                                                                               
 CO-CHAIRMAN HUDSON stated his understanding that there is a 30-day            
 requirement for new residents.                                                
                                                                               
 SENATOR DONLEY responded that statutes contain variable residency             
 requirements, depending on the benefit gained by residency.  For a            
 sport fish license, there is a one-year requirement.                          
                                                                               
 Number 2282                                                                   
                                                                               
 DICK BISHOP, Executive Director, Alaska Outdoor Council, came                 
 forward to testify about concerns the council has with the bill.              
 They support a general annual nonresident sport fishing license,              
 for reasons stated by others and because U.S. citizens would feel             
 disadvantaged by having to qualify as commercial fishermen, for               
 example, in order to obtain an annual license in Alaska.  In                  
 addition, Alaska competes with other areas of the country for             
 visitors and sport fishermen, as well as with Canada.  He believes            
 there is a real risk in raising Alaska's fees, unless it is state             
 policy to discourage visitors.  He concluded by recommending                  
 inclusion of an annual sport fishing license generally available              
 for nonresidents, with a fee of $100, rather than $150.                       
                                                                               
 Number 2368                                                                   
                                                                               
 CO-CHAIRMAN OGAN asked what Canada's fees are.                                
                                                                               
 MR. BISHOP said he does not know.  He does know that "they                    
 advertise like crazy" in fishing magazines.                                   
                                                                               
 SENATOR DONLEY indicated he had some information about it.                    
 Depending on the exchange rate, Canadian fees would be a little               
 lower than Alaska's if the legislation were to pass as it is.                 
                                                                               
 Number 2406                                                                   
                                                                               
 MR. BRUCE advised that the ADF&G Division of Sport Fish had looked            
 at the fee schedule in many western states.  Under Senator Donley's           
 proposed schedule, Alaska would fall on the high side but generally           
 within the range.  The ADF&G believes that given the quality of               
 experience in Alaska, as well as its resources, being on the high             
 end of the range is appropriate.                                              
                                                                               
 Number 2435                                                                   
                                                                               
 REPRESENTATIVE WILLIAMS referred to issues relating to the Kenai              
 River and said he would like to hear how this could be used as a              
 tool.                                                                         
                                                                               
 SENATOR DONLEY responded that at the end of each year, there would            
 be an assessment of how many of these particular licenses were sold           
 and how many were repeat sales.                                               
                                                                               
 TAPE 97-39, SIDE B                                                            
 Number 0006                                                                   
                                                                               
 SENATOR DONLEY suggested multiple purchases would indicate how many           
 nonresidents use the resource for the entire season or for long               
 periods of time.  He believes that would be helpful.  Now, it is so           
 cheap to buy an annual license that people staying two weeks might            
 buy one in case they might return.  Although he had heard of                  
 examples of problems, he had no hard data to determine their                  
 extent.  In the future, through computers, the information could be           
 a possible enforcement or management tool.                                    
                                                                               
 Number 0068                                                                   
                                                                               
 CO-CHAIRMAN HUDSON referred to page 2 of the bill and suggested               
 that removing all the qualifiers on lines 16 through 28 would                 
 restore the general annual sport fishing license at the rate of               
 $150.  He noted that as the bill stands, an annual license is the             
 next increment beyond a 14-day license.  He suggested possibly                
 adding a 30-day license as well.                                              
                                                                               
 SENATOR DONLEY said he believes in the 14-day license theory.                 
 However, if the committee restores the general annual license                 
 option, deleting lines 16 through 28 on page 2 is appropriate.  He            
 said he hates to lose the management aspect.  He therefore                    
 requested that the committee also assist him in drafting intent               
 language to call on the Board of Fisheries to revisit this issue.             
 He suggested putting that at the front of the bill.  He again                 
 expressed disappointment that the Board of Fisheries had not acted            
 on it this year.                                                              
                                                                               
 Number 0164                                                                   
                                                                               
 CO-CHAIRMAN OGAN concurred.  He announced he would hold the bill              
 over.                                                                         
                                                                               
 CO-CHAIRMAN HUDSON asked Senator Donley to work on intent language            
 to bring before the committee at the next hearing.                            
                                                                               
 SENATOR DONLEY agreed to do so.                                               
                                                                               
 Number 0188                                                                   
                                                                               
 REPRESENTATIVE WILLIAMS commented that this is a hot issue,                   
 especially on the Kenai River.  He said the problem is there are              
 too many out-of-state fishermen there.  He suggested if they are              
 concerned about sport fishermen in Alaska, they should say so.                
                                                                               
 CO-CHAIRMAN OGAN said it is an issue statewide, though perhaps                
 harder to track in Southeast Alaska.                                          
                                                                               
 CO-CHAIRMAN HUDSON said he believes Representative Williams is                
 right.  He has heard tales of case after case of canned salmon                
 coming in from Pelican, for example.  He does not believe it is an            
 isolated problem.  He suggested the key is getting information.  He           
 said we do not want nonresidents coming up here, staying and                  
 literally going into a commercial business.  He believes this is on           
 the right track.                                                              
                                                                               
 CO-CHAIRMAN OGAN recalled an instance where the Division of Fish              
 and Wildlife Protection became aware of a restaurant in Germany               
 selling salmon that could only have been caught with a rod and              
 reel, under a sport license.                                                  
                                                                               
 [SB 7 was held over]                                                          

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