Legislature(1997 - 1998)

04/09/1998 01:50 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
             HOUSE FINANCE COMMITTEE                                           
   APRIL 9, 1998                                                               
                          1:50 P.M.                                            
                                                                               
TAPE HFC 98 - 100, Side 1.                                                     
TAPE HFC 98 - 100, Side 2.                                                     
TAPE HFC 98 - 101, Side 1.                                                     
                                                                               
CALL TO ORDER                                                                  
                                                                               
Co-Chair Hanley called the House Finance Committee meeting                     
to order at 1:50 P.M.                                                          
                                                                               
PRESENT                                                                        
                                                                               
Co-Chair Hanley   Representative Kelly                                         
Co-Chair Therriault   Representative Kohring                                   
Representative J. Davies  Representative Martin                                
Representative G. Davis  Representative Moses                                  
Representative Foster  Representative Mulder                                   
Representative Grussendorf                                                     
                                                                               
ALSO PRESENT                                                                   
                                                                               
Ron Somerville, House & Senate Majority Consultant; Ted                        
Popely, House & Senate Majority Attorney; Mary Pete,                           
Director, Division of Subsistence, Department of Fish and                      
Game; Crystal Smith, Assistant District Attorney,                              
Department of Law.                                                             
                                                                               
SUMMARY                                                                        
                                                                               
HB 325 An Act making appropriations for the operating and                      
loan program expenses of state government, for                                 
certain programs, and to capitalize funds; making                              
appropriations under art. IX, sec. 17(c),                                      
Constitution of the State of Alaska, from the                                  
constitutional budget reserve fund; and providing                              
for an effective date.                                                         
                                                                               
 HB 325 was HELD in Committee for further                                      
consideration.  All Subcommittee reports were                                  
adopted.                                                                       
                                                                               
HB 406 An Act relating to subsistence uses of fish and                         
game.                                                                          
                                                                               
 CS HB 406 (FIN) was reported out of Committee with a                          
"do not pass" recommendation.  The fiscal notes will be                        
addressed at another meeting.                                                  
HOUSE BILL NO. 325                                                             
                                                                               
"An Act making appropriations for the operating and                            
loan program expenses of state government, for certain                         
programs, and to capitalize funds; making                                      
appropriations under art. IX, sec. 17(c), Constitution                         
of the State of Alaska, from the constitutional budget                         
reserve fund; and providing for an effective date."                            
                                                                               
Representative Mulder MOVED to adopt all subcommittee                          
reports.  There being NO OBJECTION, they were adopted.                         
                                                                               
HB 325 was HELD in Committee for further consideration.                        
HOUSE BILL NO. 406                                                             
                                                                               
"An Act relating to subsistence uses of fish and                               
game."                                                                         
                                                                               
Co-Chair Therriault stated that the Committee would be                         
working from the House Judiciary version of the proposed                       
legislation.  He referenced Section 2(b)(3) and asked if                       
requirements for adopting those regulations would be                           
needed.                                                                        
                                                                               
RON SOMERVILLE, HOUSE AND SENATE MAJORITY CONSULTANT,                          
replied that it would not be necessary to have a further                       
allocation.                                                                    
                                                                               
Co-Chair Therriault spoke to the membership of the advisory                    
board noting concern that the majority of the board                            
represented urban Alaska.  Mr. Somerville recommended that                     
further clarification be made regarding who would make                         
those appointments and the number of members on the board.                     
He pointed out that clarification had been included in                         
previous versions, however, it had been removed from the                       
House Judiciary version.                                                       
                                                                               
Representative J. Davies questioned if the current version                     
of the bill was consistent with Alaska National Interest                       
Lands Conservation Act (ANILCA).  Mr. Somerville replied                       
that ANILCA would need to be changed if the version before                     
the Committee was presented to Congress as the ultimate                        
solution.  Representative J. Davies asked if those changes                     
were feasible.                                                                 
                                                                               
TED POPELY, HOUSE AND SENATE MAJORITY ATTORNEY, advised                        
that he did not have enough information to date regarding                      
that concern.                                                                  
                                                                               
Representative J. Davies inquired if the House Judiciary                       
version of the legislation would require a constitutional                      
amendment. Mr. Somerville and Mr. Popely noted that a case                     
could be made for no constitutional amendment, but only the                    
courts could answer that question.                                             
                                                                               
Representative J. Davies referenced Page 5, Line 3, and                        
asked if there would be objection to modifying that                            
language, deleting "a" and inserting "the".  Mr. Somerville                    
replied that such a change would create a substantial                          
difference.  Mr. Popely agreed, pointing out that use of                       
"a" afforded more flexibility when making the                                  
determination.  Representative J. Davies suggested that it                     
provided too much flexibility.                                                 
                                                                               
Representative Grussendorf advised that the proposed                           
legislation does not meet the ANILCA test.  He questioned                      
the changes which the State would need from ANILCA to make                     
this work.  Mr. Popely responded, there are a number of                        
concerns to consider in establishing the definition of what                    
constitutes public lands.  With respect to the proposed                        
statute, these are the areas of concern:                                       
                                                                               
? The dependency criteria which are related to the                             
preference scheme and do not exist in Title VIII.                              
? The authority of the State to establish non-                                 
subsistence areas.                                                             
? Eliminating the reference to the term rural.                                 
? Amending the entire rural preference scheme.                                 
? In Section 804, the local residency requirement                              
needs to be changed.                                                           
? Definitions need to match each other.  There are                             
several definitions in State law which are not                                 
contained in federal law.                                                      
? The local and regional advisory committees would                             
have to be amended to mirror State law.                                        
                                                                               
Co-Chair Therriault interjected that consideration must                        
also be given to the eliminating "rural" since that would                      
not allow a person living in an urban area to petition for                     
inclusion.  "Rural" should be replaced with some mechanism                     
which could allow rural preference while at the same time,                     
would allow someone to make application.  Mr. Popely noted                     
that the application of "rural" indicates simply a place of                    
residence.                                                                     
                                                                               
Representative Kelly asked if HB 406 was closer to moving                      
the State to a workable solution.  Mr. Somerville responded                    
that the proposed legislation was quite different from what                    
is currently in State statute.  The proposed legislation                       
would craft priorities, while allowing the board to be able                    
to establish a "presumption" regarding the areas                               
experiencing the shortage.  Mr. Somerville noted that the                      
bill would provide more of a preference than existing State                    
law.                                                                           
                                                                               
Representative Kelly suggested that the provision would                        
protect Native Alaskans authority to fish and hunt more so                     
than contained in ANILCA.  Mr. Somerville remarked that the                    
design of the proposed legislation would give Native                           
Alaskans and their extended families justification for                         
their hunting and fishing rights.  That would be more                          
advantageous than the current language under ANILCA.                           
                                                                               
Representative Kelly understood that Bethel, under ANILCA,                     
would possibly no longer be considered a subsistence area.                     
Mr. Somerville replied that there are a number of                              
communities which are starting to reach the upper limits of                    
the 7500 resident established cut off.  He agreed that                         
Bethel could be eliminated.  The federal government                            
established 7500 as the high plateau in which communities                      
larger than that could essentially be considered urban.                        
Representative Kelly questioned why Native groups would be                     
in support of ANILCA, with the possibility that their area                     
could be labeled "urban" cutting them off.  Representative                     
Grussendorf advised that federal guidelines use other                          
criteria to establish what is rural and what is urban                          
outside of the population number.                                              
                                                                               
Representative Grussendorf addressed the recommended                           
changes suggested by Mr. Popely.  He questioned the amount                     
of time it would take to accomplish those goals.  Mr.                          
Popely advised that these changes would have to be to                          
federal statute, requiring congressional action.  The                          
current provisions of ANICLA are under moratorium, due to                      
expire December, 1998.  He admitted that the time frame was                    
limited to whenever Congress could enact changes to the                        
legislation.                                                                   
                                                                               
Representative Grussendorf referenced Page 9, Line 24-27,                      
which identifies non-subsistence hunting and fishing areas                     
asking how it would be implemented.  Mr. Popely replied                        
that the intent would relate back to determinations made by                    
the Board regarding what non-subsistence areas are.  In                        
application of that criteria, the intent was to reassess                       
those communities and make a determination that there are                      
more non-subsistence areas than are currently included in                      
law.                                                                           
                                                                               
Co-Chair Therriault asked if there was a compelling reason                     
to include "substantially" instead of "may".  Mr.                              
Somerville commented that would be a legislative policy                        
decision.  Representative J. Davies asked if the Judiciary                     
version implied that existing areas do not meet the                            
necessary criteria.  Mr. Somerville responded that was not                     
the implication and that the Board will review the                             
criteria.                                                                      
                                                                               
CRYSTAL SMITH, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF                       
LAW, noted that she was present in the absence of Steven                       
White, the attorney who has responsibility for the                             
subsistence issue.  She said he is very sick, and offered                      
to give him the Committee's questions and would then                           
provide a response.  Representative Grussendorf asked for                      
further information regarding why the legislation does not                     
meet the standard for the Alaska State Constitution.                           
                                                                               
MARY PETE, DIRECTOR, DIVISION OF SUBSISTENCE, DEPARTMENT OF                    
FISH AND GAME, stated that the bill in its present form was                    
not consistent with ANILCA.  She advised that Senator                          
Stevens is not happy with the proposed legislation.                            
Disqualifying large groups of people is significant.  The                      
bill in its present form, mandates significant increases in                    
non-subsistence portions of the State, which could mean                        
that 10% of the current qualifying population would be                         
disqualified.  She stressed that this would encompass a                        
tremendous amount of people and would create a significant                     
change to ANILCA.                                                              
                                                                               
Ms. Pete added, in current process, the State must                             
implement the subsistence law.  That law is clear.  The                        
only portion of the proposed process which parallels the                       
current process is the Tier II step.  Representative J.                        
Davies asked if the proposed legislation would require a                       
constitutional amendment.  Ms. Pete noted that Mr. White,                      
Assistant Attorney General, had advised that it would.                         
                                                                               
Co-Chair Therriault spoke to the Department of Fish and                        
Game's fiscal note.  He inquired if the proposed amount was                    
derived from the bill's current wording and what that                          
increase would identify.  Ms. Pete responded that the                          
fiscal impact resulted from the new definition of a                            
subsistence "area".                                                            
                                                                               
(Tape Change HFC 98- 100, Side 2).                                             
                                                                               
Ms. Pete added that the fiscal note indicates the                              
communities which will have to be excluded.  The bottom of                     
the note lists the current non-subsistence communities; the                    
top of the note lists the communities which would be                           
presumed excluded if that definition was used.  The current                    
version of the bill mandates that a person wanting to hunt                     
or fish has to qualify by stock and population.  If that                       
person wants to fish more than one fish stock, they would                      
be required to apply for each fish stock separately.  In                       
village households, the majority hunts and fish using                          
either subsistence fishing regulations or current hunting                      
regulations.  She added that the fiscal note prepared by                       
the Department covers costs for the minimum amount of                          
estimated applications.                                                        
                                                                               
Co-Chair Therriault referenced the definition of "shall" on                    
Page 5.  He advised that it would be a "leap" to assume                        
that the communities listed would be "absolutely" moved                        
into a non-subsistence category.  Ms. Pete agreed.  She                        
pointed out that in helping the board go through and make a                    
non-rural determination, the data-based characteristic that                    
was used to determine subsistence areas was listed on Line                     
22, #9, the harvest levels.  She stressed that this was the                    
"heart" of the database used at the Department of Fish and                     
Game, and that most of the other characteristics are                           
difficult to measure and quantify.                                             
                                                                               
Co-Chair Therriault WITHDREW Amendment 1.  [Copy on File].                     
He pointed out the similarity between Amendment #1 and                         
Amendment #5 as prepared by Representative Kelly.  [Copy on                    
File].                                                                         
                                                                               
Co-Chair Therriault MOVED to adopt Amendment #2.  [Copy on                     
File].  Representative J. Davies OBJECTED for the purpose                      
of discussion.                                                                 
                                                                               
Co-Chair Therriault explained that it was the Legislature's                    
intent that fish and game resources be managed so that                         
Alaska continues to have abundance in order that all uses                      
be satisfied.  The language of the amendment would                             
guarantee that.                                                                
                                                                               
Mr. Somerville explained that Amendment #2 contains three                      
identical parts which would be inserted as an instruction                      
by the Legislature to the Department to get fish and                           
hunting levels back up to provide for presumptive uses.                        
Representative Grussendorf noted that there should be a                        
fiscal note attached to the proposed amendment.  Co-Chair                      
Therriault asked if the amendment would be a directive                         
requiring the Department to do something more than they                        
currently perform.  Mr. Somerville suggested that it would                     
be a directive from the Legislature, although, there would                     
be no penalty from the board if the requirements were not                      
satisfied.  Representative Grussendorf reiterated that                         
there will be money attached to the directive.  Mr.                            
Somerville replied that was not the intent.                                    
                                                                               
Representative J. Davies WITHDREW the OBJECTION to adopt                       
Amendment #2.  There being NO OBJECTION, it was adopted.                       
                                                                               
Co-Chair Therriault MOVED to adopt Amendment #3.  [Copy on                     
File].  He explained that the amendment attempts to add                        
further definition by referencing a constitutional                             
provision.  It would change the language to be consistent                      
with Article VIII, Section #4.  There being NO OBJECTION,                      
it was adopted.                                                                
                                                                               
Co-Chair Therriault MOVED to adopt conceptual Amendment #4.                    
[Copy on File].  He explained that the amendment would                         
clarify the number of representatives on the Board                             
specifying that no fewer than four members come from the                       
impacted area.  Ms. Pete noted that the language was closer                    
close to that proposed by the task force.                                      
                                                                               
Representative J. Davies suggested that language be drafted                    
into two sentences; the first would indicate that it be                        
composed of two well-informed people and the second that it                    
would consist of nine members appointed by the Governor.                       
Co-Chair Therriault agreed to accept that as a "friendly"                      
amendment to Amendment #4.                                                     
                                                                               
Representative Foster asked why the amendment recommended                      
only "4" of the members reside in the affected area.  He                       
MOVED that "4" be changed to "5".  There being NO OBJECTION                    
it was changed.  There being NO OBJECTION to the amended                       
Amendment #4, it was adopted.                                                  
                                                                               
Representative Kelly MOVED to adopt Amendment #5.                              
Representative J. Davies OBJECTED.  Representative J.                          
Davies MOVED to delete the first third of the amendment,                       
Page 1, Line 5.  Representative Mulder OBJECTED.  He                           
thought that without that portion, the meaning would be                        
changed because the first finding addresses the management                     
of the land, a primary consideration of ANILCA's land                          
management and is consistent with subsistence use.  Co-                        
Chair Therriault believed that could occur with multiple                       
use statutes.                                                                  
                                                                               
Representative Kelly replied that there are land use plans                     
and a number of permits which address multi-use.  Mr.                          
Somerville addressed the issue of multiple use versus                          
single use.  Representative Kelly recommended that the                         
language remain in the amendment.  Representative                              
Grussendorf stressed that the State can not manage federal                     
lands.  Representative J. Davies believed that the                             
amendment would move the bill further from being consistent                    
with ANILCA.                                                                   
                                                                               
Representative Kelly advised that without that language the                    
authority would be expanded.  Representative Grussendorf                       
worried that the title was so broad that a lot more could                      
be inserted into it.  Mr. Popely explained that it would be                    
in compliance with ANILCA.  He referenced the section which                    
requires that the State enact laws which comply with ANILCA                    
in order to resume management.  Technically, that section                      
does not require that there be a word for word match                           
between ANILCA and State law but rather that Sections 802,                     
803 and 805 be in compliance.                                                  
                                                                               
Representative Grussendorf reminded members that                               
"subsistence" also includes harvesting of berries, willow                      
roots and anything else that people use off the land.                          
                                                                               
Representative Kelly reiterated that if that language is                       
removed, the legislative language will not match ANILCA,                       
and at the same time would not be out of compliance with                       
ANILCA.  If it is left in, legislative language will enact                     
into State law a new provision which would define the use                      
of the land, tying subsistence and the land together in a                      
new way.  He urged that the Committee adopt the amendment.                     
Mr. Popely agreed that this was a proper characterization                      
of that language.                                                              
                                                                               
Representative Grussendorf questioned why the State should                     
put itself at risk when addressing federal and state lands.                    
                                                                               
A roll call vote was taken on the motion to delete the                         
first section of the amendment.                                                
                                                                               
IN FAVOR: Moses, J. Davies, G. Davis, Grussendorf,                             
Foster                                                                         
OPPOSED:  Martin, Mulder, Kelly, Hanley, Therriault                            
                                                                               
Representative Moses was not present for the vote.                             
                                                                               
The MOTION FAILED (5-5).                                                       
                                                                               
(Tape Change HFC 98- 101, Side 1).                                             
                                                                               
A roll call vote was taken on the motion to adopt Amendment                    
                                                                               
IN FAVOR: Moses, Mulder, G. Davis, Kelly, Martin,                              
Therriault, Hanley                                                             
OPPOSED:  J. Davies, Grussendorf, Foster                                       
                                                                               
Representative Kohring was not present for the vote.                           
                                                                               
The MOTION PASSED (7-3).                                                       
                                                                               
Co-Chair Therriault MOVED to adopt Amendment #6.  [Copy on                     
File].  He explained that it would restrict the legislation                    
to the issue of subsistence.  There being NO OBJECTION, it                     
was adopted.                                                                   
                                                                               
Representative Mulder MOVED to report CS HB 406 (FIN) out                      
of Committee with individual recommendations and with the                      
accompanying fiscal notes.  Co-Chair Therriault asked to                       
leave off the fiscal notes until the Committee has received                    
the new ones.  Representative Mulder revised his motion to                     
only move the bill.                                                            
                                                                               
Representative Grussendorf OBJECTED to moving the bill from                    
Committee.  He stated that the legislation counters                            
constitutional principles which could cause problems for                       
the State.  He indicated that he would remove his                              
OBJECTION, although, stressed that the legislation falls                       
short of meeting the constitutional test.                                      
                                                                               
Representative Foster OBJECTED to moving the bill from                         
Committee, pointing out that all the village people are                        
very sincere in their objection to this piece of                               
legislation, whereas, rural preference continues to be                         
guaranteed under the federal protection.                                       
                                                                               
A roll call vote was taken on the motion to move the bill.                     
                                                                               
IN FAVOR: Mulder, G. Davis, Kelly, Martin, Hanley,                             
Therriault                                                                     
OPPOSED: J. Davies, Grussendorf, Foster, Kohring,                              
Moses                                                                          
                                                                               
The MOTION PASSED (6-5).                                                       
                                                                               
CS HB 406 (FIN) was reported out of Committee with "do not                     
pass" recommendation.  Co-Chair Therriault stated that the                     
bill would be noticed at the next scheduled meeting in order                   
that the fiscal notes could be addressed.                                      
ADJOURNMENT                                                                    
                                                                               
The meeting adjourned at 3:40 P.M.                                             
H.F.C. 10 4/09/98                                                              

Document Name Date/Time Subjects