Legislature(2021 - 2022)BUTROVICH 205

01/26/2022 03:30 PM Senate RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 85 FOREST LAND USE PLANS; TIMBER SALES TELECONFERENCED
Heard & Held
-- Public Testimony --
+= HB 79 SALTWATER SPORTFISHING OPERATORS/GUIDES TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
           HB  79-SALTWATER SPORTFISHING OPERATORS/GUIDES                                                                   
                                                                                                                                
4:25:14 PM                                                                                                                    
CHAIR  REVAK  announced   the  consideration   of  CS FOR  HOUSE  BILL  NO.                                                     
79(FIN)   "An  Act  relating   to  sport   fishing  operators    and  sport                                                     
fishing   guides;   requiring   the  Department    of  Fish  and   Game  to                                                     
prepare   and  submit   a  report;    and  providing   for   an  effective                                                      
date."                                                                                                                          
                                                                                                                                
4:25:50 PM                                                                                                                    
DOUG VINCENT-LANG, Commissioner, Alaska Department of Fish and                                                                  
Game,   Anchorage,    Alaska,   introduced   HB   79  on   behalf   of  the                                                     
administration.    He read  the  following  statement   into  the record:                                                       
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
      Thank   you  for  this   opportunity    to  speak   to  HB  79,                                                           
      legislation     introduced     by   the    Governor     and    a                                                          
      department priority.                                                                                                      
                                                                                                                                
      With  this  bill  the  department   would  like  to  reinstate                                                            
      the  saltwater    licensing   and   reporting    requirements.                                                            
      Before  amendment   in House   Fisheries  and  passage   by the                                                           
      House,  last  year,   it did  not  reinstate   the  freshwater                                                            
      licensing    or    reporting    requirements     because    the                                                           
      department   does   not  see   an  immediate   need   for  this                                                           
      kind of reporting in freshwater at this time.                                                                             
                                                                                                                                
      However,   in  House  Fisheries    the  bill  was   amended  to                                                           
      require  licensure   of  freshwater    operators   and  guides,                                                           
      but   not   require    reporting    by   them.       This   was                                                           
      accompanied   by  a reduction   in  licensure   fees  for  both                                                           
      freshwater    and  saltwater    guides.     This   change   has                                                           
      caused  some  concern   with  the  freshwater   operators   and                                                           
      guides  across  the  state.    The bill  was  also  amended  in                                                           
      House    Finance    to   include    a   resident/nonresident                                                              
      licensing   fee differential.    The  amended  version   of the                                                           
      bill  was   passed  by   the  House   last  year   and  is  now                                                           
      before you.                                                                                                               
                                                                                                                                
      Before   I  go  any  further   let   me  provide   you  with   a                                                          
      little   bit  of  legislative    background   on  this   issue.                                                           
      The  sport  fish  guide  and  operator   licenses   were  first                                                           
      adopted  in  the  2003-2004   legislative   session   and  took                                                           
      effect  in  2005   and  remained   in effect   until  December                                                            
      31,  2014,  when   they  expired   due  to  a  sunset   clause.                                                           
      This  legislation    was  passed   based   on  the   urging  of                                                           
      both  fresh   and  saltwater   guides   who  were   looking  to                                                           
      professionalize    their   industries    and   to  ensure   the                                                           
      department   had  information    necessary   to  manage   their                                                           
      fisheries.                                                                                                                
                                                                                                                                
      During   the   2015-2016    legislative    session   only   the                                                           
      saltwater   licensing    and  reporting    requirements    were                                                           
      reinstated    with  a   sunset   of  2018.   The   legislature                                                            
      stripped  the  freshwater   piece  from  the  legislation   and                                                           
      the  Department   supported  this  as  we were  not  using  the                                                           
      freshwater    information   for   in   season   management   or                                                           
      assessment   of  fisheries.     And,   we  were  seeing   minor                                                           
      logbook   violations,     for   example   an   error   in   the                                                           
      reporting   of  the  number   of  grayling   released,   result                                                           
      in  loss   of   concession   permits,    notably   on   federal                                                           
      lands.     This   legislation    sunsetted    in  2018.     The                                                           
      legislature   provided   some  bridge   funding  through   UGF,                                                           
      but  that   has  since  gone   away.    As  such   we  have  no                                                           
      legislation   in  place   to  collect   fees  to  pay  for  the                                                           
      marine logbook program.                                                                                                   
                                                                                                                                
      Logbook  data  has  been  collected   by the  department   from                                                           
      saltwater   sport   fishing   businesses    and  guides   since                                                           
      1998 and is critical to:                                                                                                  
                                                                                                                                
      • Upholding   the   state's    US/Canada    Pacific    Salmon                                                             
         treaty obligations                                                                                                     
                                                                                                                                
      • Providing  data  to  the International    Pacific   Halibut                                                             
         Commission crucial to making allocation and                                                                            
         management decisions                                                                                                   
                                                                                                                                
      • It is also  critical   for  the  North  Pacific  Fisheries                                                              
         Management Council for managing federal fisheries,                                                                     
         avoiding duplicative reporting requirements, and                                                                       
         undue burden on the charter industry.                                                                                  
                                                                                                                                
      • Logbook  data  also  supports   a  myriad   of  additional                                                              
         critical   uses,  including   but  not  limited   to;  State                                                           
         Fisheries     Monitoring      &    Management,     Advisory                                                            
         Announcements   &  Emergency   Orders,   the  Alaska   Board                                                           
         of Fisheries   Processes,   Advisory  Committees,   etc...                                                             
                                                                                                                                
      Let  me  give   you  an  example   of   the  utility   of  this                                                           
      information   in  the  management   of  saltwater   fisheries.                                                            
      Last  year,   we   saw  significant    decreases   in   tourism                                                           
      across  Alaska   which  resulted   in  significant   reduction                                                            
      in  saltwater   charter   boat  fishing.   We  used  data  from                                                           
      the   logbook    program    to   show   that    we   would   be                                                           
      significantly    below  our   catch  quotas   for  halibut   in                                                           
      the  charter  industry   and  we  were  able  to  use  data  to                                                           
      relax  the   regulations   enacted   by  the  IPHC   and  allow                                                           
      the  charter   boat  fishery  some   additional   opportunity.                                                            
      This  resulted    in  increased   participation    in   halibut                                                           
      charter    fisheries,    mainly    by   Alaskans.     It   also                                                           
      provided    a  needed    economic    boost   to   the   charter                                                           
      fisheries and local economies.                                                                                            
                                                                                                                                
      Fees  collected   as part  of  this  bill  would  provide  data                                                           
      necessary    to   manage    marine   charter    fisheries    of                                                           
      Alaska.   These    fisheries    support   somewhere    in   the                                                           
      neighborhood    of  250,000    angler   days   of  effort   and                                                           
      contribute over $1.5M to the state's economy.                                                                             
                                                                                                                                
      In   sum,    the   Department     supports    this    bill   as                                                           
      introduced   by  the  Governor   and  see  it  as  a necessary                                                            
      tool  to  fund  and   manage  saltwater   charter   fisheries.                                                            
      We  urge   your   support   in   moving   this   bill   out  of                                                           
      committee.                                                                                                                
                                                                                                                                
4:30:46 PM                                                                                                                    
RACHEL HANKE, Legislative Liaison, Alaska Department of Fish and                                                                
Game, Soldotna, Alaska, paraphrased the sectional analysis for                                                                  
HB 79.                                                                                                                          
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
      Section 1                                                                                                             
      Establishes    license   fees  for   resident   sport   fishing                                                           
      guides and operators.                                                                                                     
         • Resident guide license - $100                                                                                        
         • Resident operator license - $200                                                                                     
         • Resident operator and guide combined license -                                                                       
            $200                                                                                                                
                                                                                                                                
      Establishes   license  fees  for  nonresident   sport   fishing                                                           
      guides and operators.                                                                                                     
         • Nonresident guide license - $200                                                                                     
         • Nonresident operator license - $400                                                                                  
         • Nonresident operator and guide combined license -                                                                    
            $400                                                                                                                
                                                                                                                                
      Section 2                                                                                                             
      Adds new Article to AS 16.40 that                                                                                         
         • AS 16.40.262      provides stipulations for the                                                                    
            sport fishing operator license and defines the                                                                      
            license type                                                                                                        
            o Includes requirements such as a business                                                                          
              license and general liability insurance                                                                           
         • AS 16.40.272      provides stipulations for the                                                                    
            sport fishing guide license and combined operator                                                                   
            guide license, defines both license types                                                                           
            o Includes requirements such as a current sport                                                                     
               fishing license and first aid certification                                                                      
         • AS 16.40.282  establishes the logbook reporting                                                                    
            requirements   for  saltwater   guides   and  operators.                                                            
            Allows   the    department    to   collect    freshwater                                                            
            logbook  information    if  the  departments    deem  the                                                           
            information necessary.                                                                                              
         • AS  16.40.292          establishes     penalties     for                                                           
            violations the of the chapter                                                                                       
         • AS 16.40.301  defines "sport fishing guide" and                                                                    
            "sport fishing guide services".                                                                                     
                                                                                                                                
      Section 3                                                                                                             
        Adds salt sportfishing operator and guide license to                                                                    
       AS 25.27.244(s)(2) which defines "license" in statutes                                                                   
      regarding the Child Support Services Agency.                                                                              
                                                                                                                                
      Section 4                                                                                                             
      Uncodified   law   directing   the  Department    of  Fish  and                                                           
      Game  to prepare   a report   for the  legislature   proposing                                                            
      solutions   to  gathering   harvest  data  for  the  saltwater                                                            
      rental  and  unguided   fishing   industry,   due  December  1,                                                           
      2022.                                                                                                                     
                                                                                                                                
      Section 5                                                                                                             
      Effective date of January 1, 2022.                                                                                        
                                                                                                                                
4:32:18 PM                                                                                                                    
SENATOR   STEVENS   recalled   the  courts   ruled  that   the  cost  of  a                                                     
nonresident   commercial   fisheries   license  must  equate  to  the  cost                                                     
to  administer   the  program.  He  asked  whether   the  nonresident   fee                                                     
increases in this bill are justifiable.                                                                                         
                                                                                                                                
COMMISSIONER    VINCENT-LANG    responded   that  in  the   Carlson   Case,                                                     
the  courts  ruled   that  the department    may not  charge   nonresident                                                      
businesses   more  to  operate   in  the  state  than  the  relative   cost                                                     
to   administer    the   program.    Typically,     the   nonresident    to                                                     
resident   cost  differential   is  3 to  1.  On the  advice   of counsel,                                                      
HB 79 settled on a defensible 2 to 1 differential.                                                                              
                                                                                                                                
4:33:37 PM                                                                                                                    
SENATOR    KAWASAKI    asked    whether    $600,000    was   required    to                                                     
implement   the  logbook   program  at  the  department   level   and  meet                                                     
the  obligations   of  the  Pacific   Salmon   Treaty  and  International                                                       
Halibut Act.                                                                                                                    
                                                                                                                                
COMMISSIONER    VINCENT-LANG    answered   that  the   cost  is   a  little                                                     
more  than   $600,000.   Limited   funds  from   the  Halibut   Commission                                                      
and  the Salmon   Treaty  will  supplement   the  cost to  do  portions  of                                                     
the  logbook  program.   He  said  that  $600,000   is  the unrecoverable                                                       
cost associated with this program.                                                                                              
                                                                                                                                
SENATOR   KAWASAKI    asked  how   the   program   was  funded   prior   to                                                     
2004/2005 and what the bridge funds were in 2018/2019.                                                                          
                                                                                                                                
COMMISSIONER    VINCENT-LANG     answered   that   this   was   originally                                                      
funded   through  Fish   and  Game    unrestricted    general  fund   (UGF)                                                     
dollars.    He    said   that    early    on   the   guides    wanted    to                                                     
professionalize    the  industry,    set  standards,   and  use   data  for                                                     
economic   analysis.   The   guides  pushed   freshwater    and  saltwater                                                      
licensing   in the  original   bill.  Later,  this  information   was  used                                                     
against    the    freshwater     guide    industry    and    became    very                                                     
controversial.    The  guide   industry   successfully   let  the  program                                                      
sunset,   and the  bill  with  it.  The  freshwater   guide  data  was  not                                                     
used  by  ADFG.  The  department    still  had  obligations,    which  Fish                                                     
and  Game  funded  through   the  Sportfish   Division  UGF  and  Dingell-                                                      
Johnson   (DJ)  funds  in  federal   aid.  Since   the  bill  did  not  get                                                     
reapproved,    the  department    lost   the  legislature      UGF   bridge                                                     
funds   over   time.   He  stated    that  the   department    decided   to                                                     
reintroduce   the  saltwater   piece  of  this  bill  to  reduce  Fish  and                                                     
Game's   dependence   on  UGF  and  recover   some  of  those  funds.   The                                                     
saltwater   guide  industry,  in-large   part,  is supportive   of HB  79.                                                      
                                                                                                                                
4:36:08 PM                                                                                                                    
SENATOR   KIEHL  commented   that  this  a good  bill.  He  asked  at  what                                                     
threshold   guide-type   activities   define  an  individual  as  a  guide.                                                     
He  illustrated    the   question,   asking   whether   a  guide/operator                                                       
license   would    be  required    to   put  highlighter    marks    on  an                                                     
angler's   chart,  rent  an angler   a boat  and  rod, or  sell  an  angler                                                     
a bucket of bait.                                                                                                               
                                                                                                                                
COMMISSIONER   VINCENT-LANG    answered   that  guide  activities   do  not                                                     
include   boat   rentals    at   this   point   in  time.   The   official                                                      
definition   of  a  guide   means  that  an  individual    accompanies   an                                                     
individual, guiding.                                                                                                            
                                                                                                                                
4:37:36 PM                                                                                                                    
CHAIR REVAK opened public testimony on HB 79.                                                                                   
                                                                                                                                
4:38:27 PM                                                                                                                    
ED  MARTIN  JR.,  representing   self,  Kenai,  Alaska,   testified   on HB
79.  He  is a  56-year  resident   of  Alaska.  He  agrees  with  the  cost                                                     
of  the   resident   sport   fishing   services    license   but  strongly                                                      
disagrees   with   the   nonresident   cost.   He  reasoned    nonresident                                                      
fees should be significantly higher because:                                                                                    
                                                                                                                                
1.   Nonresident    dollars   are   a   better   option   for   generating                                                      
revenue than a state income tax, and                                                                                            
                                                                                                                                
2.  Cost  prohibitive   fees  will  reduce   the number   of  nonresidents                                                      
that   obtain   a  guide/operator    license.    The  reduced   number   of                                                     
nonresident   guides/operators     will  create   space  in  the  industry                                                      
for more local guides/operators.                                                                                                
                                                                                                                                
SENATOR    STEVENS    commented    later    in   the   meeting    that   he                                                     
appreciated    Mr.  Martin's   testimony.   Senator   Stevens   said   that                                                     
the  legislature   has   attempted   to  increase  nonresident    fees  for                                                     
commercial   fisheries   in the  past.  He  suggested   the Department   of                                                     
Law   brief  the   committee   on   the  implications    and   limitations                                                      
opined in the Carlson Case.                                                                                                     
                                                                                                                                
4:41:33 PM                                                                                                                    
CHAIR  REVAK  closed   public  testimony   on  HB 79  [and  held  the  bill                                                     
in committee.]                                                                                                                  

Document Name Date/Time Subjects
SB 85 DNR Presentation 1.26.22.pdf SRES 1/26/2022 3:30:00 PM
SB 85
SB 85 Fiscal Note DNR 1.6.2022.pdf SRES 1/26/2022 3:30:00 PM
SB 85
HB79 Sectional Analysis ver. I 5.13.21.pdf SRES 1/26/2022 3:30:00 PM
HB 79
HB79 Explanation of Changes ver. A to I 5.13.21.pdf SRES 1/26/2022 3:30:00 PM
HB 79
HB 79 Fiscal Note 1.21.2022.pdf SRES 1/26/2022 3:30:00 PM
HB 79