Legislature(2021 - 2022)ADAMS 519

04/13/2021 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 79 SALTWATER SPORTFISHING OPERATORS/GUIDES TELECONFERENCED
Heard & Held
-- Public Testimony --
+= HB 80 SPT FSH HATCHERY FACIL ACCT; SURCHARGE TELECONFERENCED
Heard & Held
-- Public Testimony --
+ SB 22 INTENSIVE MGMT SURCHARGE/REPEAL TERM DATE TELECONFERENCED
Heard & Held
-- Public Testimony --
+ HB 126 EXTEND BOARD OF PUBLIC ACCOUNTANCY TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                      April 13, 2021                                                                                            
                         1:33 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:33:25 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Merrick called the  House Finance Committee meeting                                                                    
to order at 1:33 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Kelly Merrick, Co-Chair                                                                                          
Representative Dan Ortiz, Vice-Chair                                                                                            
Representative Ben Carpenter                                                                                                    
Representative Bryce Edgmon                                                                                                     
Representative DeLena Johnson                                                                                                   
Representative Andy Josephson                                                                                                   
Representative Bart LeBon                                                                                                       
Representative Sara Rasmussen                                                                                                   
Representative Steve Thompson                                                                                                   
Representative Adam Wool                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator Josh Revak, Sponsor;  Emma Torkelson, Staff, Senator                                                                    
Josh  Revak;   Kris  Curtis,  Legislative   Auditor,  Alaska                                                                    
Division  of Legislative  Audit; Representative  Mike Cronk;                                                                    
Representative John McCabe; Representative George Rauscher.                                                                     
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Dick  Rohrer, Self,  Kodiak; Ron  Carmon,  Self, Kenai;  Ben                                                                    
Mohr,   Executive  Director,   Kenai  River   Sport  Fishing                                                                    
Association,    Soldotna;   Ron    Somerville,   Territorial                                                                    
Sportsmen, Juneau;  David Landis, General  Manager, Southern                                                                    
Southeast   Regional  Aquaculture   Association,  Ketchikan;                                                                    
Susanne  Doherty,   Executive  Director,   Southeast  Alaska                                                                    
Seiners Association,  Ketchikan; Rod Arno,  Policy Director,                                                                    
Alaska Outdoor Council, Palmer;  Katie Harms, Douglas Island                                                                    
Pink   and    Chum(DIPAC),   Juneau;    Doug   Vincent-Lang,                                                                    
Commissioner, Department  of Fish  and Game;  Mark Richards,                                                                    
Executive Director,  Resident Hunters of  Alaska, Fairbanks;                                                                    
John Sturgeon,  Director, Safari Club  International, Alaska                                                                    
Chapter,  Anchorage;  Rachel   Hanke,  Legislative  Liaison,                                                                    
Department  of  Fish  and  Game;  Sara  Chambers,  Director,                                                                    
Division   of   Corporations,  Business   and   Professional                                                                    
Licensing,  Department of  Commerce, Community  and Economic                                                                    
Development; Leslie  Schmitz, Chair, Alaska Board  of Public                                                                    
Accountancy,  Anchorage;  Don  Rulien,  Past  Member,  State                                                                    
Board  of  Public  Accountancy and  Current  Member,  Alaska                                                                    
Society  Of CPAs,  Anchorage; Crista  Burson, President  and                                                                    
CEO, Alaska Society of CPAs, Anchorage.                                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 79     SALTWATER SPORTFISHING OPERATORS/GUIDES                                                                               
                                                                                                                                
          HB 79 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HB 80     SPT FSH HATCHERY FACIL ACCT; SURCHARGE                                                                                
                                                                                                                                
          HB 80 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HB 126    EXTEND BOARD OF PUBLIC ACCOUNTANCY                                                                                    
                                                                                                                                
          HB 126 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
SB 22     INTENSIVE MGMT SURCHARGE/REPEAL TERM DATE                                                                             
                                                                                                                                
          SB 22 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
Co-Chair Merrick reviewed the agenda for the day.                                                                               
                                                                                                                                
HOUSE BILL NO. 79                                                                                                             
                                                                                                                                
     "An Act relating to salt water sport fishing operators                                                                     
     and salt water sport fishing guides; and providing for                                                                     
     an effective date."                                                                                                        
                                                                                                                                
1:34:21 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick OPENED public testimony.                                                                                       
                                                                                                                                
DICK ROHRER, SELF, KODIAK  (via teleconference), thanked the                                                                    
committee  for the  opportunity to  testify. He  remarked on                                                                    
the  financing  portion  of the  legislation.  He  found  it                                                                    
interesting  there was  not a  higher  fee on  nonresidents;                                                                    
there was  precedent for it  related to big game.  He shared                                                                    
that he  was a big game  and a sport fish  guide. He pointed                                                                    
out that  a resident  license for  big game  was $850  and a                                                                    
nonresident  license  was  $1,700. The  assistant  big  game                                                                    
license   fee  was   $410  for   residents   and  $820   for                                                                    
nonresidents. He  noted the fees  were biennial.  He pointed                                                                    
out that  an annual  commercial fishing crew  member license                                                                    
fee  was $60  for residents  and $280  for nonresidents.  He                                                                    
considered  how to  fund the  saltwater logbook  program and                                                                    
thought it  would be appropriate  to charge  the nonresident                                                                    
operator  and  guide  at  least  twice  the  amount  of  the                                                                    
resident  guide license.  He was  supportive of  the license                                                                    
fee  to   help  with  the  saltwater   logbook  program.  He                                                                    
understood the  program's importance.  He noted  his concern                                                                    
that the  license fee for  freshwater would be a  segue back                                                                    
into  a  freshwater logbook  system,  which  he opposed.  He                                                                    
noted concern with  the penalty section where  the court may                                                                    
revoke a guide's license if  the guide had two violations in                                                                    
a  three-year   period.  He  thought   that  was   a  severe                                                                    
consequence. He was primarily concerned about the fees.                                                                         
                                                                                                                                
1:37:52 PM                                                                                                                    
                                                                                                                                
RON CARMON, SELF, KENAI  (via teleconference), was concerned                                                                    
with number  4 which  required guides  to satisfy  the rules                                                                    
adopted  by the  Board of  Fish. He  thought it  should read                                                                    
that guides adopt the rules  of the constitution. He thought                                                                    
the  commissioner  of  Department   of  Fish  and  Game  was                                                                    
dictating over  the Board  of Fish  rules. He  remarked that                                                                    
the  commissioner could  only rule  on  licensed people.  He                                                                    
pointed  out   that  guides  and  charter   boats  were  not                                                                    
licensed;  however,  commercial  fishery  was  licensed.  He                                                                    
pointed  out that  current guides  and charter  boats fished                                                                    
for  free and  provided almost  zero income  to the  General                                                                    
Fund.  He reminded  the committee  that  6.4 million  guides                                                                    
frequented Alaska and  took 3 million fish out  of the Kenai                                                                    
River  and 3  million  fish  out of  the  Kasilof River.  He                                                                    
stated that catch and release  fishing was a blood sport. He                                                                    
highlighted  that  charter boats  fished  for  free and  had                                                                    
taken $44.3 billion in fish over  the last 20 years from the                                                                    
Kenai  Peninsula. The  dip net  fisheries  took 543  million                                                                    
fish per year  from the Kenai Peninsula,  which brought zero                                                                    
income  to the  General Fund.  He referenced  the money  the                                                                    
federal  government brought  in from  marijuana growers.  He                                                                    
felt legislators were  giving revenue away for  free. He had                                                                    
asked the Department  of Fish and Game why  some guides were                                                                    
licensed, and  others were not.  He suggested that it  was a                                                                    
commerce  problem started  by  Representative  Don Young  in                                                                    
1975. He  wanted the legislature  to change the law  to suit                                                                    
Alaska's needs. He thought the  Board of Fisheries should be                                                                    
eliminated.                                                                                                                     
                                                                                                                                
Representative  Wool clarified  that the  marijuana tax  was                                                                    
paid to the state, not the federal government.                                                                                  
                                                                                                                                
1:43:36 PM                                                                                                                    
                                                                                                                                
BEN  MOHR, EXECUTIVE  DIRECTOR,  KENAI  RIVER SPORT  FISHING                                                                    
ASSOCIATION, SOLDOTNA (via  teleconference), supported HB 79                                                                    
in  its  original  form. He  explained  that  the  saltwater                                                                    
logbook  program   met  an   obligation  for   reporting  on                                                                    
activities related to the Halibut  Treaty and Salmon Treaty.                                                                    
He  shared that  the  data generated  and  reported was  not                                                                    
optional. He  relayed that hunters  and sport  fishermen had                                                                    
long  supported  the  user  pays model  for  fish  and  game                                                                    
conservation.  He stated  that  accurate information  coming                                                                    
into  managers  and  treaty  negotiators  was  essential  to                                                                    
making good  calls in  Alaska's fisheries.  As beneficiaries                                                                    
of  those  management calls  and  treaty  positions, it  was                                                                    
fitting for the user to cover the costs.                                                                                        
                                                                                                                                
Mr. Mohr thought freshwater issues  should remain out of the                                                                    
bill.  He  stated  there  was  no reason  a  pike  guide  in                                                                    
Fairbanks  should be  paying for  a program  required for  a                                                                    
charter  guide in  Ketchikan.  He  stated that  establishing                                                                    
guide  registration   fees  under  the  guise   of  programs                                                                    
necessary   for  treaty   obligations  like   the  saltwater                                                                    
logbook, looked  to be somewhat inappropriate.  He suggested                                                                    
that  if the  legislature wanted  to  create a  new fee  for                                                                    
small  businesses  it  should be  taken  up  under  separate                                                                    
legislation.  He  stated  that  the  reporting  requirements                                                                    
under  the  salmon and  halibut  treaties  were unlikely  to                                                                    
change  and managers  would continue  to  need data.  Alaska                                                                    
sport  fishing   communities  could  continue   being  self-                                                                    
supporting.  He reiterated  his support  for the  governor's                                                                    
version of the bill.                                                                                                            
                                                                                                                                
Representative   Wool   asked    if   association   believed                                                                    
nonresident and  resident guiding fees should  be different.                                                                    
He  asked if  a nonresident  guide  should pay  more than  a                                                                    
resident guide.                                                                                                                 
                                                                                                                                
Mr. Mohr  responded that the  guide sector had  been looking                                                                    
at the  topic on the  Kenai River recently. He  relayed that                                                                    
the costs for  a guide license on the Kenai  had changed. In                                                                    
the  past  there had  been  a  difference  in the  fees  for                                                                    
resident versus  nonresident guides; however, the  fees were                                                                    
currently the same.  He suggested asking parks  why the fees                                                                    
were now equal. He suspected  the reason had something to do                                                                    
with   obligations  under   the  Commerce   Clause  of   the                                                                    
constitution related to operating  businesses and where they                                                                    
are based. He noted it was just a guess.                                                                                        
                                                                                                                                
1:46:55 PM                                                                                                                    
                                                                                                                                
Representative Wool  asked if  Mr. Mohr  supported different                                                                    
rates for resident and nonresident guides.                                                                                      
                                                                                                                                
Mr.  Mohr replied  that  he  had not  given  the issue  much                                                                    
thought. He  had given much  more thought to  the difference                                                                    
on licensing  between instate  and out-of-state  anglers. He                                                                    
noted it was a different question for businesses.                                                                               
                                                                                                                                
1:47:40 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick CLOSED public testimony.                                                                                       
                                                                                                                                
Co-Chair  Merrick  indicated  amendments  were  due  in  her                                                                    
office by the end of Saturday, April 17, 2021.                                                                                  
                                                                                                                                
HB  79  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HOUSE BILL NO. 80                                                                                                             
                                                                                                                                
     "An  Act   establishing  the  sport   fishing  hatchery                                                                    
     facilities  account;  establishing  the  sport  fishing                                                                    
     facility  surcharge;  and  providing for  an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
1:47:59 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick OPENED public testimony.                                                                                       
                                                                                                                                
1:48:23 PM                                                                                                                    
                                                                                                                                
RON   SOMERVILLE,   TERRITORIAL   SPORTSMEN,   JUNEAU   (via                                                                    
teleconference),  spoke  in  strong  support of  HB  80.  He                                                                    
shared  that the  Territorial  Sportsmen  had supported  the                                                                    
surcharge  in  the  past, which  greatly  helped  the  local                                                                    
fishery. He stated  it was a situation where  the users were                                                                    
willing to  pay for  the extra benefits.  He noted  that the                                                                    
king  salmon fisheries  had been  abysmal  in recent  years,                                                                    
except  for  fish from  the  hatchery  program supported  by                                                                    
funds  from the  surcharge.  He highlighted  there had  been                                                                    
virtually no complaints about the  surcharge over the years.                                                                    
He  mentioned  the original  reason  for  the surcharge.  He                                                                    
stated the surcharge was a  win-win for everyone; it did not                                                                    
take  anything  out  of  the   General  Fund  and  was  user                                                                    
supported.                                                                                                                      
                                                                                                                                
1:50:30 PM                                                                                                                    
                                                                                                                                
DAVID LANDIS,  GENERAL MANAGER, SOUTHERN  SOUTHEAST REGIONAL                                                                    
AQUACULTURE    ASSOCIATION     (SSRAA),    KETCHIKAN    (via                                                                    
teleconference), spoke  in support  of HB 80.  He understood                                                                    
the bulk  of the projected  revenue would go to  the William                                                                    
Jack Hernandez  hatchery in Anchorage  and the  Ruth Burnett                                                                    
hatchery in Fairbanks. He pointed  out that the Crystal Lake                                                                    
hatchery  in Petersburg  was  also owned  by  the state  and                                                                    
operated  by  SSRAA.  He  relayed  that  a  portion  of  the                                                                    
operational funding for Crystal  Lake was funded through the                                                                    
surcharge  and the  funding was  critical  to the  continued                                                                    
operation of the hatchery. He  relayed that fish produced at                                                                    
Crystal Lake  with the funding  were primarily  king salmon.                                                                    
The fish were paid for  by the surcharge in combination with                                                                    
Dingle  Johnson  funds.  He   highlighted  that  SSRAA  also                                                                    
produced  an  equivalent  number of  kings  transported  and                                                                    
released in other Southeast locations.  The fish were caught                                                                    
in  large   numbers  by  sport  fishers.   He  stressed  the                                                                    
importance of  the operational  and maintenance  funding for                                                                    
Crystal Lake.  He read  from a fact  sheet generated  by the                                                                    
Department of  Fish and Game.  He stated that the  user pays                                                                    
system was fair and  appropriate. The organization supported                                                                    
the passage of the bill.                                                                                                        
                                                                                                                                
1:53:10 PM                                                                                                                    
                                                                                                                                
SUSANNE  DOHERTY,   EXECUTIVE  DIRECTOR,   SOUTHEAST  ALASKA                                                                    
SEINERS ASSOCIATION,  KETCHIKAN (via  teleconference), spoke                                                                    
in support of the legislation.  She stated that the hundreds                                                                    
of   millions  of   dollars   in   the  sportfish   hatchery                                                                    
infrastructure  needed  to  be maintained  and  upgraded  as                                                                    
appropriate.  She  stressed  the  importance  of  additional                                                                    
revenues  to Southeast  Alaska to  support king  salmon. She                                                                    
stated  a  revenue  source was  needed  and  reenacting  the                                                                    
surcharge  in  some  form  had   been  a  proven  method  of                                                                    
generating capital.                                                                                                             
                                                                                                                                
1:54:30 PM                                                                                                                    
                                                                                                                                
BEN  MOHR, EXECUTIVE  DIRECTOR,  KENAI  RIVER SPORT  FISHING                                                                    
ASSOCIATION,   SOLDOTNA  (via   teleconference),  spoke   in                                                                    
support of the governor's version  of HB 80. The association                                                                    
did  not support  the changes  made in  the House  Fisheries                                                                    
Committee that  added an additional $2.50  to the surcharge.                                                                    
He explained that the surcharge  had fallen off the previous                                                                    
year because bonds issued for  sportfish hatcheries had been                                                                    
repaid  early.  He  stated  that  the  hunting  and  fishing                                                                    
communities had supported  the user pays model  for fish and                                                                    
game conservation and management.  He relayed that the sport                                                                    
fishery   directly   benefitted  from   Alaska's   sportfish                                                                    
hatcheries. The  governor's bill  introduced a  surcharge on                                                                    
sportfish  licenses and  dedicated the  funds to  supporting                                                                    
sportfish activities.                                                                                                           
                                                                                                                                
Mr.  Mohr stated  it was  critical for  the funds  generated                                                                    
from  sportfish  licenses  to   stay  with  the  users.  The                                                                    
organization  opposed some  of  the  language in  amendments                                                                    
that essentially  poured money into the  department and were                                                                    
fairly vague  in terms of  how the  money would be  used. He                                                                    
requested  for the  excess money  to go  towards access  and                                                                    
opportunity,   specifically    to   the    construction   or                                                                    
maintenance of capital  improvements that directly supported                                                                    
sportfishing access  or activities that were  not authorized                                                                    
under the  hatchery program. Under the  governor's proposal,                                                                    
the average  Alaska fisherman would  see a net  $5 reduction                                                                    
in licenses  between last  year and  the coming  year, while                                                                    
maintaining services provided by  the department. He thanked                                                                    
the committee for considering the bill.                                                                                         
                                                                                                                                
1:56:58 PM                                                                                                                    
                                                                                                                                
Vice-Chair Ortiz  thought there had been  testimony that the                                                                    
added surcharge  was to partially help  address the invasive                                                                    
species issue. He asked if  the organization saw any benefit                                                                    
from trying to address invasive species.                                                                                        
                                                                                                                                
Mr. Mohr responded that the  organization saw the benefit of                                                                    
managing Alaska's  invasive species  problem. The  issue the                                                                    
association had  with the bill  was the $2.50  surcharge. He                                                                    
stated the  organization had been supportive  of legislative                                                                    
efforts  to take  care  of invasive  species  in Alaska.  He                                                                    
stated  that   the  organization's  issue  with   the  $2.50                                                                    
surcharge, which  included invasive species  management, was                                                                    
not  specific about  how it  would  impact invasive  species                                                                    
within  the  sportfishing  community.  He  highlighted  that                                                                    
invasives  impacted  all users  of  the  resource, not  just                                                                    
sport fishermen.                                                                                                                
                                                                                                                                
1:58:16 PM                                                                                                                    
                                                                                                                                
ROD ARNO,  POLICY DIRECTOR,  ALASKA OUTDOOR  COUNCIL, PALMER                                                                    
(via teleconference),  supported the governor's  proposal of                                                                    
HB 80. He  stated that the Outdoor Council  had been present                                                                    
when a  Fairbanks Senator got  the bond package  together to                                                                    
get  the two  sportfish hatcheries  in operation.  There had                                                                    
been a number  of people concerned that when  the bonds were                                                                    
paid  off,  the fees  would  go  away.  He shared  that  the                                                                    
membership   was  supportive   of  changing   the  Sportfish                                                                    
Enterprise  Account (primarily  about  constructing the  two                                                                    
hatcheries)  to  the   Sportfish  Enhancement  Account.  The                                                                    
outdoor  community  was supportive  of  helping  to pay  for                                                                    
management of resources they personally benefit from.                                                                           
                                                                                                                                
2:00:38 PM                                                                                                                    
                                                                                                                                
KATIE HARMS,  DOUGLAS ISLAND PINK  AND CHUM  (DIPAC), JUNEAU                                                                    
(via teleconference), supported HB  80. She provided details                                                                    
about the  DIPAC hatchery  and its  mission. She  provided a                                                                    
brief  history   of  the  sportfishing   programs  operating                                                                    
through funds  from the  Department of  Fish and  Game (DFG)                                                                    
that  were  currently almost  90  percent  supported by  the                                                                    
sportfish license  fee surcharge. She shared  that DIPAC had                                                                    
received  just  over  $300,000 annually  for  the  sportfish                                                                    
enhancement  program. She  shared that  without the  outside                                                                    
funds,  the  chinook program  would  never  have started  at                                                                    
DIPAC.  The program  had become  a staple  sport fishery  in                                                                    
Juneau for residents and  nonresidents. She highlighted that                                                                    
with  the  decline  in  wild  chinook  stocks  in  Southeast                                                                    
Alaska,  the opportunity  to catch  hatchery raised  chinook                                                                    
salmon was more important than  ever. She shared that due to                                                                    
financial  uncertainty associated  with poor  salmon returns                                                                    
in Southeast Alaska, the DIPAC  chinook program would likely                                                                    
be  greatly reduced  in the  upcoming year  if no  surcharge                                                                    
license  state  revenues  were established  in  the  current                                                                    
session.                                                                                                                        
                                                                                                                                
2:02:41 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick CLOSED public testimony.                                                                                       
                                                                                                                                
Co-Chair  Merrick  indicated  Amendments  were  due  in  her                                                                    
office by the end of Saturday, April 17, 2021.                                                                                  
                                                                                                                                
HB  80  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 22                                                                                                            
                                                                                                                                
     "An Act repealing the termination date for the                                                                             
     intensive management hunting license surcharge."                                                                           
                                                                                                                                
2:03:02 PM                                                                                                                    
                                                                                                                                
SENATOR  JOSH REVAK,  SPONSOR,  introduced  himself. He  was                                                                    
honored to present SB 22. The  bill was an act repealing the                                                                    
termination  date   of  the  intensive   management  hunting                                                                    
license surcharge. He shared that  the bill was asked for by                                                                    
the sportsman  community. He thought  it meant a lot  when a                                                                    
group indicated they wanted to  pay their own way. He stated                                                                    
the bill  would bring in  matching funds for the  state. The                                                                    
bill would  mean intensive management  would continue  to be                                                                    
directly sourced  from the surcharge  as opposed  to general                                                                    
fund appropriations.  He noted  the state had  an obligation                                                                    
to conduct  intensive management  in Alaska. The  bill would                                                                    
be  used  to  leverage Pittman  Robertson's  75/25  matching                                                                    
funds. He detailed that $1  million from the surcharge would                                                                    
bring in  $3 million [in  federal funds]. Given  tourism, he                                                                    
believed it was  more important at present  than ever before                                                                    
for the Department of Fish and Game.                                                                                            
                                                                                                                                
Senator  Revak reported  that the  program had  been working                                                                    
well and the bill would  merely eliminate the sunset for the                                                                    
program. He relayed that he  had not heard any opposition to                                                                    
the  bill.  He stated  that  most  importantly, the  program                                                                    
helped support healthy game  populations for moose, caribou,                                                                    
and deer in the state  so Alaskans could continue to harvest                                                                    
the animals to feed their families.                                                                                             
                                                                                                                                
                                                                                                                                
2:05:19 PM                                                                                                                    
                                                                                                                                
EMMA  TORKELSON, STAFF,  SENATOR  REVAK, stated  that SB  22                                                                    
removed  the   sunset  date  of  the   intensive  management                                                                    
surcharge  placed on  hunting licenses.  She explained  that                                                                    
the  program  identified  when a  moose,  caribou,  or  deer                                                                    
population  became at  risk of  falling below  a sustainable                                                                    
level  to allow  for hunting  of the  particular population.                                                                    
She elaborated  that the program  identified the  root cause                                                                    
of the  population decrease and developed  and implemented a                                                                    
plan for  rectifying the issue.  She stated that  most often                                                                    
the plans  were focused on  research and could  also include                                                                    
management such  as habitat enhancement.  Prior to  2016 the                                                                    
program  was  funded   by  capital  project  appropriations;                                                                    
however, since 2016, the surcharge  on hunting licenses plus                                                                    
the matched  federal dollars,  completely covered  the cost.                                                                    
In total, the  surcharge brought in $1 million  in user fees                                                                    
that were leveraged  to receive an additional  $3 million in                                                                    
Pittman Robertson funds.                                                                                                        
                                                                                                                                
Ms. Torkelson  relayed that the  $4 million paid for  all of                                                                    
the work  of intensive management; however,  the state would                                                                    
have  to  assume  the  cost if  the  surcharge  sunset.  She                                                                    
highlighted that the program  protected the state's wildlife                                                                    
populations and  promoted food security across  the state by                                                                    
allowing hunters  to access healthy  herds. She  stated that                                                                    
the  bill ensured  the program  could continue  to be  self-                                                                    
sustainable and  user funded. She asked  for the committee's                                                                    
support.                                                                                                                        
                                                                                                                                
2:07:10 PM                                                                                                                    
                                                                                                                                
Representative  Josephson  stated  that  he  had  been  told                                                                    
repeatedly that  Pittman-Robertson funds  could not  be used                                                                    
to match predator  control and could only be  used for other                                                                    
parts  of  the program.  He  asked  if the  information  was                                                                    
accurate.                                                                                                                       
                                                                                                                                
Senator Revak deferred to the department.                                                                                       
                                                                                                                                
2:07:44 PM                                                                                                                    
                                                                                                                                
DOUG  VINCENT-LANG,  COMMISSIONER,  DEPARTMENT OF  FISH  AND                                                                    
GAME  (via   teleconference),  responded  that   in  certain                                                                    
instances federal funds could  be used for predator control;                                                                    
however, the  natural diversity  guidelines driving  much of                                                                    
federal  management in  the State  of Alaska,  precluded the                                                                    
use  of federal  funds  to do  predator  control on  federal                                                                    
lands.  He explained  that doing  predator control  on state                                                                    
lands  using  federal  dollars fell  under  federal  review,                                                                    
which could be cumbersome.  The department leveraged federal                                                                    
dollars  to  conduct much  of  the  science associated  with                                                                    
predator  control activities  on state  lands; however,  the                                                                    
removal of  predators was done  with state dollars  to avoid                                                                    
interference and oversight from the federal government.                                                                         
                                                                                                                                
2:08:47 PM                                                                                                                    
                                                                                                                                
Representative   Josephson   noted    he   had   heard   the                                                                    
commissioner mention that intensive  management (IM) was not                                                                    
done  on  federal land.  He  was  puzzled by  the  statement                                                                    
because  intensive management  was  done  on federal  lands,                                                                    
frequently over the objection of  the federal government. He                                                                    
asked  for the  accuracy of  his understanding.  He remarked                                                                    
that the issue was in the newspaper monthly.                                                                                    
                                                                                                                                
Commissioner Vincent-Lang responded  that the department was                                                                    
not  currently doing  any  intensive  management on  federal                                                                    
land.  He  relayed  that  DFG  had  approached  the  federal                                                                    
government   the  previous   year   about  doing   intensive                                                                    
management on  federal land near the  Mulchatna caribou herd                                                                    
because the  herd was  in a predator  pit and  not providing                                                                    
for any  subsistence uses; however,  the department  had not                                                                    
heard  back on  whether it  could enter  into a  cooperative                                                                    
agreement  to  do  predator control  on  federal  lands.  He                                                                    
reiterated that  the department  was doing  predator control                                                                    
on state lands, but not on federal lands.                                                                                       
                                                                                                                                
Representative Josephson highlighted  that the National Park                                                                    
Service had  noted the  shooting of  its collared  wolves in                                                                    
research programs. He remarked that  wolves did not know the                                                                    
boundaries [between  state and federal lands].  He asked for                                                                    
verification  that there  had been  huge disputes  about the                                                                    
topic between the two governments.                                                                                              
                                                                                                                                
Commissioner  Vincent-Lang replied  that  there were  wolves                                                                    
the National  Park Service had  collared on federal  land in                                                                    
Tetlin Park  that had  been shot on  state land  in predator                                                                    
control areas. He confirmed there  had been conflict between                                                                    
the  state and  federal  governments  over predator  control                                                                    
programs. He relayed that DFG  was operating under the state                                                                    
intensive  management law  and  the  federal government  was                                                                    
managing  under natural  diversity  guidelines. The  federal                                                                    
guidelines  did  not  endorse   predator  control  on  their                                                                    
landscapes.  He  emphasized that  the  state  was not  doing                                                                    
predator  control  on  federal  lands,  some  of  the  state                                                                    
predator control areas were adjacent to federal lands.                                                                          
                                                                                                                                
2:10:54 PM                                                                                                                    
                                                                                                                                
Representative Josephson  asked the commissioner  to explain                                                                    
the  difference between  intensive  management and  predator                                                                    
control.  He  assumed  predator  control  was  a  subset  of                                                                    
intensive management.                                                                                                           
                                                                                                                                
Commissioner    Vincent-Lang   explained    that   intensive                                                                    
management was anything the state  did to intensively manage                                                                    
populations  to  increase  productivity for  human  use.  He                                                                    
stated that  in some  cases, the  state was  doing intensive                                                                    
management on  federal lands, but not  predator control. For                                                                    
example, the  department was conducting  habitat restoration                                                                    
programs  on the  Kenai Peninsula  in  cooperation with  the                                                                    
U.S. Fish  and Wildlife Service  aimed at fire breaks  and a                                                                    
variety of  other habitat improvements that  would hopefully                                                                    
result in  greater moose populations over  the long-term. He                                                                    
stated that  DFG was not  doing any wolf  population control                                                                    
on federal  lands on  the Kenai  Peninsula. He  relayed that                                                                    
intensive  management  was  a broader  spectrum  that  could                                                                    
include  habitat   manipulation,  fire  controls,   and  the                                                                    
removal of  predators. He stated  that predator  removal was                                                                    
one subset of intensive management.                                                                                             
                                                                                                                                
2:12:01 PM                                                                                                                    
                                                                                                                                
Representative   Josephson   asked   at   what   point   the                                                                    
liberalizing of  brown bear baiting  on the Kenai  became de                                                                    
facto predator control.                                                                                                         
                                                                                                                                
Commissioner Vincent-Lang  responded that  he had  been part                                                                    
of  the  discussions regarding  brown  bear  baiting on  the                                                                    
Kenai Peninsula  and it was  a more complex  discussion than                                                                    
intensive management  of bears. He  stated it had  been more                                                                    
focused on trying to deal with  the number of bears on state                                                                    
land that were causing  human-bear interactions on the Kenai                                                                    
Peninsula. There  had been a  large outcry from  citizens on                                                                    
the peninsula  with the number  of bears around.  He relayed                                                                    
that the Board  of Game had decided to do  some bear removal                                                                    
to  try to  reduce  the human-bear  interactions. He  stated                                                                    
that  the  board  recognized the  action  would  potentially                                                                    
benefit the moose  population on the Kenai  Peninsula due to                                                                    
the  reduction in  bears. He  believed  the board's  primary                                                                    
driver was  to remove the  number of bears to  reduce human-                                                                    
bear  interactions,  given  that  the  state  could  not  do                                                                    
intensive management across the  entire peninsula on federal                                                                    
lands.                                                                                                                          
                                                                                                                                
2:13:26 PM                                                                                                                    
                                                                                                                                
Representative  Josephson  was  concerned that  when  people                                                                    
paid the surcharge, they may not  be aware of the variety of                                                                    
ways invented  and enhanced since  1994 to  undergo predator                                                                    
control. He asked if the  commissioner believed hunters were                                                                    
aware of all  of the liberal practices  as legalized hunting                                                                    
and predator control.                                                                                                           
                                                                                                                                
Commissioner  Vincent-Lang believed  there was  a relatively                                                                    
good awareness on the subject  based on the number of emails                                                                    
and calls he received about it.  He noted that the topic was                                                                    
in the  newspapers quite  a bit.  He provided  background on                                                                    
intensive management.  He explained that the  department had                                                                    
a statutory obligation  to report back to the  Board of Game                                                                    
when a population was not  meeting its population or harvest                                                                    
objectives.  The  department  reported  to  the  board  when                                                                    
[population  or harvest]  objectives set  by the  board were                                                                    
underachieving. He explained that  the board then tasked the                                                                    
department  with  coming  up with  an  intensive  management                                                                    
plan. He detailed that DFG  evaluated the population and the                                                                    
intensive   management   strategies  at   the   department's                                                                    
disposal. He  relayed that  if the  land was  mostly federal                                                                    
and  there  was  little  chance   to  improve  habitat,  the                                                                    
department likely  reported back to  the Board of  Game that                                                                    
intensive  management  was  not  feasible in  the  area.  He                                                                    
stated that at  that point "it moves off and  they deal with                                                                    
it through other levels of  means to get the population back                                                                    
up."  In   other  cases,  when  the   department  determined                                                                    
predator control  may work, it  put together a  proposal for                                                                    
review by the  Board of Game and  advisory committees across                                                                    
the state were given an opportunity to weigh in.                                                                                
                                                                                                                                
Commissioner Vincent-Lang  stated that the  department moved                                                                    
into  the implementation  phase of  an intensive  management                                                                    
program after it  was approved by the board.  He stated that                                                                    
if the plan included reducing  the number of wolves or bears                                                                    
on a landscape, the department  moved to implement the plan.                                                                    
The department had an obligation  to report back annually on                                                                    
progress on  the plan. He relayed  that if the plan  was not                                                                    
working, the board could reverse the  plan as it had in Unit                                                                    
16 about eight to ten years  back. He summarized that a plan                                                                    
was initiated  by the Board  of Game, and it  was constantly                                                                    
reviewed by DFG  and the board to ensure it  was meeting the                                                                    
objectives. He  stated that if  a plan was not  working, the                                                                    
department  walked away  from it  and moved  on to  the next                                                                    
area. He added  that the public had an  opportunity to weigh                                                                    
in throughout the process.                                                                                                      
                                                                                                                                
2:16:36 PM                                                                                                                    
                                                                                                                                
Representative Carpenter  stated that  he did not  think the                                                                    
Kenai  residents' understanding  of the  current regulations                                                                    
and how  management was  conducted was  germane to  the bill                                                                    
discussion.  He  thought the  people  of  Kenai were  likely                                                                    
fully aware of how the  state was managing resources. He did                                                                    
not believe the committee  should be questioning whether the                                                                    
people of Kenai did or did not know.                                                                                            
                                                                                                                                
Senator  Revak thought  it was  important  to remember  that                                                                    
predator control was a small  piece of intensive management.                                                                    
He stated  that intensive  management included a  variety of                                                                    
things  such   as  research,   controlled  burns,   and  all                                                                    
different aspects  of habitat.  He believed under  1 percent                                                                    
of intensive  management the previous year  went to predator                                                                    
control.                                                                                                                        
                                                                                                                                
Co-Chair  Merrick  relayed  that the  committee  would  hear                                                                    
invited testimony.                                                                                                              
                                                                                                                                
2:17:54 PM                                                                                                                    
                                                                                                                                
DOUG  VINCENT-LANG,  COMMISSIONER,  DEPARTMENT OF  FISH  AND                                                                    
GAME (via  teleconference), provided testimony on  HB 80. He                                                                    
read a prepared statement:                                                                                                      
                                                                                                                                
     The  Alaska Legislature  recognized  the importance  of                                                                    
     wild  game  meat  to  Alaskans as  a  food  source  and                                                                    
     consistent with  Article VIII, Section 4  of the Alaska                                                                    
     Constitution,  passed the  intensive management  law in                                                                    
     1994. This law  requires ADF&G and the  Alaska Board of                                                                    
     Game to  identify moose, caribou, and  deer populations                                                                    
     that  are  especially  important food  sources  and  to                                                                    
     ensure  that the  populations  remain  large enough  to                                                                    
     provide  food  security  to  Alaskans  to  an  adequate                                                                    
     sustained  harvest.   Recognizing  the   potential  for                                                                    
     federal  interference   and  state  IM   programs,  the                                                                    
     department  funded its  IM programs  under  the IM  law                                                                    
     from a series of capital  budgets. As the capital funds                                                                    
     were  expended  and  new   funds  were  not  allocated,                                                                    
     hunters became concerned about  the future of intensive                                                                    
     management  in  Alaska.  Because   of  the  success  of                                                                    
     several state-run  conducted IM programs  in increasing                                                                    
     ungulates,  principally caribou  and moose  populations                                                                    
     on   state  lands,   hunters  requested   an  intensive                                                                    
     management surcharge  be added to their  licenses. This                                                                    
     was  at the  request  of hunters  across  the State  of                                                                    
     Alaska. The request  was made to ensure  the funds were                                                                    
     dedicated   and  available   to   assess  and   conduct                                                                    
     intensive management  activities, especially  given the                                                                    
     reluctance  of federal  managers  to conduct  intensive                                                                    
     management on their lands or using federal funds.                                                                          
                                                                                                                                
     The   legislature  agreed   and   added  an   intensive                                                                    
     management surcharge  to hunting  licenses in  2016 and                                                                    
     the surcharge has been collected  since January 1, 2017                                                                    
     and has been used to  fulfill our obligations under the                                                                    
     state  IM   law.  Intensive  management   programs  and                                                                    
     enhanced  habitat  [inaudible]  predators  are  a  core                                                                    
     element of game management  on state lands. I emphasize                                                                    
     that IM  programs also  include habitat  enhancement in                                                                    
     addition  to predator  control.  We  have done  several                                                                    
     habitat  enhancement projects  across  Alaska aimed  at                                                                    
     improving  ungulate numbers.  In  addition to  reliable                                                                    
     funding, careful planning is  essential to ensuring our                                                                    
     state IM  programs are  both effective  and defendable.                                                                    
     All state  intensive management programs are  guided by                                                                    
     an   intensive   management   protocol   that   ensures                                                                    
    decisions are based on the best available science.                                                                          
                                                                                                                                
     Intensive  management  allows us  to  put  food on  the                                                                    
     table of  Alaskans and is  one of the priorities  of me                                                                    
     as   commissioner   and   are  essential   to   meeting                                                                    
     subsistence  needs,  the department's  first  priority.                                                                    
     Just look  at the  success we have  had in  meeting the                                                                    
     food  needs of  Alaskans in  the 40-mile  caribou herd.                                                                    
     This herd,  restored through our  IM efforts,  put over                                                                    
     2.6  million  of  healthy  meat   in  the  freezers  of                                                                    
     Alaskans.  I refer  to  a handout  each  of you  should                                                                    
     have.  These surcharge  funds also  ensure that  we can                                                                    
     implement  the state  IM  law  without interference  of                                                                    
     federal oversight, and I remind  you that two-thirds of                                                                    
     Alaska lands  are federal lands  and are off  limits to                                                                    
     intensive  management activities  as  they are  managed                                                                    
     for their  natural diversity, not human  use, despite a                                                                    
     rural subsistence  priority and  there is  no assurance                                                                    
     one  can  feed  one's family  under  natural  diversity                                                                    
     objectives.                                                                                                                
                                                                                                                                
     The legislation before you today  repeals the sunset on                                                                    
     the intensive management  surcharge. This proposal does                                                                    
     not  have  any  additional  costs  to  the  department.                                                                    
     Should the surcharge sunset, the  department will see a                                                                    
     significant decrease  in revenue  to pay  for intensive                                                                    
     management  and our  ability  to  meet our  obligations                                                                    
     under the  intensive management  law. Revenue  from the                                                                    
     IM surcharge  totals approximately  $1 million  in each                                                                    
     of the last  three calendar years. Most  of those funds                                                                    
     are used  to match Pittman  Robertson dollars at  a one                                                                    
     to three ratio. That  means absent an appropriation for                                                                    
     the match,  the department  could stand to  lose nearly                                                                    
     $4  million  hampering   the  department's  ability  to                                                                    
     conduct IM  activities. With that, I  urge your support                                                                    
     for this important piece of legislation.                                                                                   
                                                                                                                                
2:21:48 PM                                                                                                                    
                                                                                                                                
Representative  Wool  referenced Ms.  Torkelson's  testimony                                                                    
that funds  were used for research,  management, and habitat                                                                    
enhancement.  He  did not  believe  he  had heard  her  list                                                                    
predator  control.  He  did  not   know  whether  it  was  a                                                                    
deliberate  or accidental  omission. He  understood predator                                                                    
control  accounted  for a  small  percentage  in FY  20.  He                                                                    
pointed out that it accounted  for a larger percentage in FY                                                                    
18 and  FY 19.  He highlighted  the controversial  nature of                                                                    
the topic.  He referenced a  couple of costs. He  thought it                                                                    
was  important   to  touch  upon  the   issue  because  many                                                                    
legislators heard  from constituents who did  not agree with                                                                    
the  aerial hunting  of wolves  or gassing  of wolf  pups in                                                                    
their  dens.   He  believed   it  was   what  Representative                                                                    
Josephson  had  been  referring  to when  he  had  asked  if                                                                    
everyone  realized   some  of   the  funds  went   to  those                                                                    
methodologies. He knew it had been  going on and that it had                                                                    
been controversial.  He noted the  topic had come up  in the                                                                    
commissioner's confirmation  and it would continue  to be an                                                                    
issue. He thought if the sponsor  was going to list what the                                                                    
funds would be  used for that predator control  should be on                                                                    
the  list   with  habitat   enhancement  and   research  and                                                                    
management. He stated that while it  was not a large part of                                                                    
the budget,  it was part  of the  budget and he  believed it                                                                    
should be discussed in the open.                                                                                                
                                                                                                                                
Senator Revak  responded that  the programs  were statutory,                                                                    
and DFG had  to fund intensive management. He  felt it would                                                                    
be appropriate  to address the  issue separately.  He stated                                                                    
that  currently intensive  management had  to be  funded. He                                                                    
believed it would be better for  it to be funded with a user                                                                    
fee rather than UGF.                                                                                                            
                                                                                                                                
Representative   Rasmussen    referred   to   Representative                                                                    
Carpenter's  point  of order.  She  did  not feel  like  the                                                                    
conversation was germane to the topic.                                                                                          
                                                                                                                                
Representative  Wool   countered  that  the   committee  had                                                                    
received  a   handout  for  the  bill   that  mentioned  the                                                                    
aforementioned  items.   He  disagreed  with   the  previous                                                                    
comment and stated that the topic was germane.                                                                                  
                                                                                                                                
Co-Chair  Merrick noted  the committee  had  been joined  by                                                                    
Representative Mike Cronk.                                                                                                      
                                                                                                                                
2:25:29 PM                                                                                                                    
                                                                                                                                
Vice-Chair Ortiz asked  why a sunset date  had been included                                                                    
when the fee had been put forward in 2016.                                                                                      
                                                                                                                                
Senator Revak  replied that  he was  not in  the legislature                                                                    
when  the  initial  bill  had passed.  He  deferred  to  the                                                                    
commissioner.                                                                                                                   
                                                                                                                                
Commissioner Vincent-Lang responded that  there had been the                                                                    
same amount  of angst about  predator control and  a variety                                                                    
of  other things  when  the law  had  originally passed.  He                                                                    
believed the compromise  had been made to leave  a sunset in                                                                    
place to review whether the program was or was not working.                                                                     
                                                                                                                                
2:26:30 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick OPENED public testimony.                                                                                       
                                                                                                                                
ROD ARNO,  POLICY DIRECTOR,  ALASKA OUTDOOR  COUNCIL, PALMER                                                                    
(via  teleconference),   shared  that  the   Alaska  Outdoor                                                                    
Council (AOC)  had been on hand  in Juneau in 2016  with the                                                                    
other major conservation organizations  in the state to come                                                                    
together and  agree to have  hunting license  fees increased                                                                    
to help  pay for  management of fish  and game.  He detailed                                                                    
that  Section  22  of  HB  137  had  created  the  intensive                                                                    
management  surcharge. The  bill  had also  created how  the                                                                    
funding source  could be gathered and  used specifically for                                                                    
intensive management projects. He  relayed that the bill had                                                                    
created  a sustainable  wildlife account.  He reported  that                                                                    
AOC   members  and   those  of   other  major   conservation                                                                    
organizations  had  willingly  agreed  to  be  part  of  the                                                                    
legislation and to pay more  for the opportunity to gather a                                                                    
wild food harvest.  The sunset had been included  due to the                                                                    
apprehension from some people  over how intensive management                                                                    
would be  implemented by  different administrations  and how                                                                    
it  would  be  received  by the  public  through  the  board                                                                    
process.                                                                                                                        
                                                                                                                                
Mr. Arno stated  that AOC members were pleased  with the way                                                                    
DFG had dispensed the funds  from the special subaccount. He                                                                    
noted  that  individuals who  purchased  the  $5 low  income                                                                    
resident hunting  license did not  have to pay the  $10 fee.                                                                    
He added  that nonresidents  paid an  additional $30  fee on                                                                    
top of  their hunting or  trapping license. He  relayed that                                                                    
the AOC's 10,000 members were  more than willing to help pay                                                                    
for the state's  management that allowed for  an increase in                                                                    
harvestable surplus.  He emphasized  that food  security was                                                                    
much  more important  than  the concerns  over  some of  the                                                                    
methods of predator control.                                                                                                    
                                                                                                                                
Co-Chair  Merrick  noted  Representative  Kevin  McCabe  had                                                                    
joined the meeting.                                                                                                             
                                                                                                                                
2:30:15 PM                                                                                                                    
                                                                                                                                
MARK  RICHARDS,  EXECUTIVE  DIRECTOR,  RESIDENT  HUNTERS  OF                                                                    
ALASKA, FAIRBANKS (via teleconference),  spoke in support of                                                                    
HB  80. He  understood and  respected that  some legislators                                                                    
had issues  with predator control  in general. He  was happy                                                                    
to discuss those issues with  anyone outside of the meeting.                                                                    
However,  he pointed  out that  intensive  management was  a                                                                    
law, and  the Board of Game  was mandated to follow  the law                                                                    
and do  intensive management when necessary.  He stated that                                                                    
most of what went into  intensive management did not involve                                                                    
predator  control efforts  and could  be funded  in part  by                                                                    
matching three to one federal  Pittman Robertson dollars. He                                                                    
noted the  dollars were growing  substantially with  the new                                                                    
[federal] administration. The  continuation of the surcharge                                                                    
helped  with  the  continuation  of  work  including  aerial                                                                    
population  surveys,   animal  health   monitoring,  habitat                                                                    
surveys,  and other.  He stated  the work  was necessary  in                                                                    
order for the  department to inform the Board  of Game about                                                                    
what kind of  opportunities hunters could have  and how much                                                                    
game could  be taken  sustainably. He encouraged  members to                                                                    
support the legislation. He remarked  that opposing the bill                                                                    
would only  result in less Pittman  Robertson funding coming                                                                    
into the state.                                                                                                                 
                                                                                                                                
Co-Chair Merrick indicated the  committee had been joined by                                                                    
Representative George Rauscher.                                                                                                 
                                                                                                                                
2:32:59 PM                                                                                                                    
                                                                                                                                
JOHN STURGEON,  DIRECTOR, SAFARI CLUB  INTERNATIONAL, ALASKA                                                                    
CHAPTER,  ANCHORAGE (via  teleconference), spoke  in support                                                                    
of  SB 22  and believed  it  should be  made permanent.  The                                                                    
organization believed  the law had been  of great assistance                                                                    
to  DFG  and  the  proper management  of  Alaska's  wildlife                                                                    
resources.  He  stated  that  harvesting  wild  game  was  a                                                                    
practice steeped  in tradition  and was  extremely important                                                                    
to  Alaska  families.  He  shared  that  his  family  almost                                                                    
exclusively  relied  on  wild game  for  their  freezer.  He                                                                    
highlighted  that  without  the  funds  to  properly  manage                                                                    
wildlife  as  a  food  source,  the  food  source  could  be                                                                    
drastically reduced or  in some cases lost. He  noted it was                                                                    
very important in rural Alaska.                                                                                                 
                                                                                                                                
Mr.  Sturgeon stated  that an  intensive surcharge  had been                                                                    
added to  hunting licenses  in 2016  and had  been collected                                                                    
since January 1,  2017. He stated that  because the programs                                                                    
had  proven successful  in  increasing  caribou, moose,  and                                                                    
deer populations, hunters requested  the surcharge to ensure                                                                    
the  funds  were  dedicated  and  available  to  assess  and                                                                    
conduct intensive management activities.  He stated that the                                                                    
license revenue  allowed DFG to  carry out projects  free of                                                                    
interference  from  the  federal  government  and  freed  up                                                                    
Pittman  Robertson funds  for the  state  in a  three-to-one                                                                    
match.  He  stated  that most  hunters  paid  the  surcharge                                                                    
without hesitation  or regret.  He relayed  hunters realized                                                                    
the  value  of proper  management  of  the state's  wildlife                                                                    
resources.  He expressed  strong  support  of the  intensive                                                                    
management program and urged making it permanent.                                                                               
                                                                                                                                
2:35:31 PM                                                                                                                    
                                                                                                                                
Co-Chair  Merrick CLOSED  public  testimony.  She asked  the                                                                    
department to review the fiscal note.                                                                                           
                                                                                                                                
RACHEL HANKE,  LEGISLATIVE LIAISON,  DEPARTMENT OF  FISH AND                                                                    
GAME  (via teleconference),  reviewed the  fiscal note.  The                                                                    
fiscal note  reflected the changes  in revenues to  the Fish                                                                    
and Game  Fund starting  in FY 23  at $500,000  beginning on                                                                    
December 22. The note reflected $1 million in the outyears.                                                                     
                                                                                                                                
Co-Chair  Merrick  indicated  amendments  were  due  in  her                                                                    
office by the end of Saturday, April 17, 2021.                                                                                  
                                                                                                                                
SB  22  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
2:36:42 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:37:55 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 126                                                                                                            
                                                                                                                                
     "An Act extending the termination  date of the Board of                                                                    
     Public  Accountancy;  and  providing for  an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
2:38:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STEVE THOMPSON,  SPONSOR, introduced himself.                                                                    
He thanked  the committee  for hearing HB  126. He  read the                                                                    
sponsor statement (copy on file):                                                                                               
                                                                                                                                
     HB 126  extends the termination  date for the  Board of                                                                    
     Public  Accountancy  for  eight years  until  June  30,                                                                    
     2029.                                                                                                                      
                                                                                                                                
     Legislative Audit conducted their  review of this board                                                                    
     and  concluded that  "the   board  served the  public's                                                                    
     interest  by  conducting  meetings in  accordance  with                                                                    
     state  laws, amending  certain  regulations to  improve                                                                    
     the  public  accountancy  occupation,  and  effectively                                                                    
     licensing and  regulating certified  public accountants                                                                    
     and partnerships/corporations  engaged in  the practice                                                                    
     of public accountancy."                                                                                                    
                                                                                                                                
     The  Board  of  Public Accountancy  consists  of  seven                                                                    
     members  appointed by  the Governor.  Five members  are                                                                    
     certified public accountants or public accountants,                                                                        
     and two members are public members.                                                                                        
                                                                                                                                
     Extending the  Board of Public Accountancy  is critical                                                                    
     in  protecting the  public  interest  by ensuring  that                                                                    
     only   qualified  persons   are   licensed,  and   that                                                                    
     appropriate  standards of  competency and  practice are                                                                    
     established and enforced.                                                                                                  
                                                                                                                                
Representative  Thompson  indicated   Ms.  Curtis  with  the                                                                    
Division  of  Legislative  Audit  would  present  the  audit                                                                    
findings.                                                                                                                       
                                                                                                                                
2:39:58 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:40:52 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Merrick  asked Ms.  Curtis  to  present the  audit                                                                    
findings.                                                                                                                       
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE AUDIT,  drew attention  to a  transmittal letter                                                                    
that  accompanied the  audit (copy  on file).  She clarified                                                                    
that  the audit  was conducted  in accordance  with auditing                                                                    
standards   with   the   exception  of   the   standard   of                                                                    
independence, which she  and her staff did  not meet because                                                                    
they were CPAs.                                                                                                                 
                                                                                                                                
Ms.  Curtis  reported that  the  audit  found the  Board  of                                                                    
Accountancy  to   be  serving   the  public's   interest  by                                                                    
conducting  its  meetings  in accordance  with  law  and  by                                                                    
effectively    licensing   CPAs    and   partnerships    and                                                                    
corporations  engaged  in   public  accountancy.  The  audit                                                                    
recommended  an eight-year  extension. She  directed members                                                                    
to page  8 of the  audit for standard  licensing statistics.                                                                    
She highlighted that Exhibit 2  showed 1,328 active licenses                                                                    
and permits as  of January 2020. When compared  to the prior                                                                    
sunset audit  in 2012, the  number represented a  10 percent                                                                    
increase. She explained  that the audit had  found Alaska to                                                                    
be  one of  the few  states that  did not  require a  social                                                                    
security  number for  licensure, consequently  there were  a                                                                    
high number of international applicants.                                                                                        
                                                                                                                                
Ms. Curtis  directed attention  to page 7  of the  audit and                                                                    
highlighted the  schedule of  revenues and  expenditures. As                                                                    
of the  end of FY  19 there was  a surplus of  over $84,000.                                                                    
She noted the fees were shown  on page 8. The audit made one                                                                    
recommendation for  improvements beginning  on page  11. The                                                                    
audit  recommended the  Division  of Corporations,  Business                                                                    
and Professional Licensing  (CBPL) chief investigator ensure                                                                    
investigations  were completed  timely.  She detailed  there                                                                    
had been 101 complaints open  during the audit period and 40                                                                    
of the  complaints had  taken over  six months  to complete.                                                                    
Auditors had reviewed five of the  40 and found that two had                                                                    
unjustified periods  of inactivity  ranging from 64  days to                                                                    
219 days. According to staff,  the inactivity was the result                                                                    
of turnover and competing priorities.                                                                                           
                                                                                                                                
Ms.  Curtis addressed  management's  response  to the  audit                                                                    
beginning on  page 21.  She relayed  that the  Department of                                                                    
Commerce,   Community  and   Economic  Development   (DCCED)                                                                    
commissioner agreed  with the report conclusions  except for                                                                    
the conclusion  that 40 percent of  investigations took over                                                                    
six  months  to  complete.  She  reported  the  commissioner                                                                    
stated that  CBPL had no  control over how  an investigation                                                                    
would unfold  or how  long it would  take, and  the division                                                                    
did not have a policy  to complete all investigations within                                                                    
a specific  timeframe. However,  the commissioner  agreed to                                                                    
authorize  an additional  investigative  supervisor to  help                                                                    
with  the caseloads.  The commissioner  also took  exception                                                                    
regarding the  audit conclusion that  the use  of technology                                                                    
impacted   board   operations    and   believed   that   the                                                                    
technological tools had been successful for all boards.                                                                         
                                                                                                                                
Ms.  Curtis  relayed that  the  board  chair's response  was                                                                    
located on page 25 of the  audit report. She stated that the                                                                    
chair did  not disagree with  any of the  report conclusions                                                                    
but had  taken the  opportunity to highlight  a disagreement                                                                    
the  board   had  with  DCCED   regarding  what   should  be                                                                    
considered essential travel.                                                                                                    
                                                                                                                                
2:44:39 PM                                                                                                                    
                                                                                                                                
Representative  Josephson referred  to  the  April 8,  2020,                                                                    
audit and asked about the  101 board related cases. He asked                                                                    
how many accountants there were [in Alaska].                                                                                    
                                                                                                                                
Ms.  Curtis responded  that as  of January  2020 there  were                                                                    
1,328 active licenses and permits.                                                                                              
                                                                                                                                
Representative Josephson asked if  the issue should be cause                                                                    
for a shorter extension period.                                                                                                 
                                                                                                                                
Ms. Curtis answered  that the criteria used  to evaluate the                                                                    
sunset  process   included  the  efficiency  to   which  the                                                                    
complaints   were  addressed.   She  elaborated   that  some                                                                    
occupational boards  had continuing  education requirements.                                                                    
She detailed  there could be  investigations related  to the                                                                    
continuing education  requirements, which most  people would                                                                    
consider  less concerning  than something  like malpractice.                                                                    
The sunset extension recommendation  did not take the number                                                                    
of complaints  into consideration, rather it  considered the                                                                    
efficiency  aspect of  the time  it was  taking to  complete                                                                    
investigations.                                                                                                                 
                                                                                                                                
2:46:27 PM                                                                                                                    
                                                                                                                                
Representative Josephson  noted that the cost  of a two-year                                                                    
license was  much less compared  to the license  for another                                                                    
profession  discussed  in  committee the  previous  day.  He                                                                    
wondered whether there could be  a fee increase (in separate                                                                    
legislation) and a requirement  for the hiring of additional                                                                    
investigator positions.                                                                                                         
                                                                                                                                
Ms.  Curtis  responded  that  the  question  may  be  better                                                                    
directed to  Ms. Chambers.  She relayed  that the  audit had                                                                    
not looked at what type of policy could be put in place.                                                                        
                                                                                                                                
2:47:18 PM                                                                                                                    
                                                                                                                                
SARA CHAMBERS, DIRECTOR,  DIVISION OF CORPORATIONS, BUSINESS                                                                    
AND   PROFESSIONAL   LICENSING,  DEPARTMENT   OF   COMMERCE,                                                                    
COMMUNITY  AND  ECONOMIC DEVELOPMENT  (via  teleconference),                                                                    
thought raising  fees to hire  additional staff was  a sound                                                                    
suggestion.  The  division  had  already added  one  or  two                                                                    
investigators to  the team  of 19  investigators responsible                                                                    
for  covering the  43  professional  licensing programs  and                                                                    
business licensing investigations.  The division was already                                                                    
augmenting  its  team  in  order  to  address  some  of  the                                                                    
workload  concerns addressed  in the  audits. She  explained                                                                    
that the investigators charged only  to the programs as they                                                                    
were  working  them.  She  used  CPAs  as  and  example  and                                                                    
explained that  if there  was an  increase in  CPA casework,                                                                    
the CPA  program would be  charged that amount,  which could                                                                    
lead to an increase in fees.                                                                                                    
                                                                                                                                
2:48:31 PM                                                                                                                    
                                                                                                                                
Representative  Rasmussen  observed  that  it  appeared  the                                                                    
board  anticipated a  surplus of  $531,524. She  wondered if                                                                    
the board remained in possession of the funds.                                                                                  
                                                                                                                                
Ms.  Chambers   responded  that  all  of   the  professional                                                                    
licensing boards  carried forward any surpluses  or deficits                                                                    
from  fiscal  year  to  fiscal   year.  The  department  was                                                                    
required by AS  08.01.065 to do a fee analysis  and set fees                                                                    
to  ensure  a surplus  or  deficit  was  not too  high.  She                                                                    
elaborated that as a program  grew a surplus, the department                                                                    
likely would reduce  the fees. Conversely, if  a program had                                                                    
a  deficit, the  department  would likely  increase fees  to                                                                    
keep  the program  from sinking  further  into deficit.  The                                                                    
fees  were   always  retained  for  use   for  the  specific                                                                    
licensing program's expenses.                                                                                                   
                                                                                                                                
Representative  Rasmussen  wondered  why   a  board  with  a                                                                    
$530,000 projected  surplus was not granted  the opportunity                                                                    
for travel  to meetings determined  by the board.  She asked                                                                    
if    statutory   or    regulatory   change    was   needed.                                                                    
Alternatively, she wondered if the  decision was made by the                                                                    
department.                                                                                                                     
                                                                                                                                
Ms.   Chambers  responded   that   the  fiscal   expenditure                                                                    
authority for each board was  set at the division level. She                                                                    
detailed  that  when  the  state  budget  was  set  via  the                                                                    
legislative   process,  the   department  was   allocated  a                                                                    
specific  amount of  expenditure  authority for  all of  the                                                                    
licensing programs.  She expounded  that each board  was not                                                                    
allocated the independent authority  by the legislature. She                                                                    
explained that just  because a board may have  a surplus did                                                                    
not mean  the department had the  expenditure authority from                                                                    
the legislature  to spend  that much  money during  a fiscal                                                                    
year.                                                                                                                           
                                                                                                                                
2:51:56 PM                                                                                                                    
                                                                                                                                
Representative Wool  looked at page  6 of the  audit report.                                                                    
He observed that 40 out of  101 cases had been open for over                                                                    
180  days. He  reasoned they  took too  long to  process. He                                                                    
asked if his understanding was accurate.                                                                                        
                                                                                                                                
Ms.  Curtis responded  that the  audit indicated  40 percent                                                                    
seemed high on a case-by-case basis.                                                                                            
                                                                                                                                
Representative  Wool  asked  for verification  it  was  just                                                                    
coincidence that five  cases had been reviewed  in the audit                                                                    
and  40  percent of  the  five  had periods  of  unjustified                                                                    
inactivity  within  the  180  days.  He  noted  the  audit's                                                                    
mention  of staff  turnover. He  asked for  verification the                                                                    
turnover pertained to board staff only and not CBPL staff.                                                                      
                                                                                                                                
Ms.  Curtis clarified  that the  investigative function  was                                                                    
carried out  within CBPL,  and the  report was  referring to                                                                    
division staff.                                                                                                                 
                                                                                                                                
Representative Wool  thought it sounded like  the same thing                                                                    
the  committee  had  heard about  the  midwifery  board.  He                                                                    
stated that  the boards were  getting called out  for taking                                                                    
too long,  but it had  to do with  the staff at  CBPL, which                                                                    
was  out   of  the   boards'  control.   He  asked   if  his                                                                    
understanding was accurate.                                                                                                     
                                                                                                                                
Ms. Curtis  agreed that the  audit highlighted the  issue as                                                                    
an  area  for  improvement.  However,  she  noted  that  the                                                                    
recommended  term  of  extension  was not  impacted  by  the                                                                    
issue.                                                                                                                          
                                                                                                                                
Representative Wool asked if CBPL was audited.                                                                                  
                                                                                                                                
Ms. Curtis replied that the  division was audited as part of                                                                    
the sunset process  as support to the  board. She elaborated                                                                    
that every time a board  was audited, the auditors looked at                                                                    
CBPL  support. She  detailed that  licensing processing  was                                                                    
not done by board members.  She explained that largely there                                                                    
was an audit of CBPL  every time the Division of Legislative                                                                    
Audit looked at an occupational board.                                                                                          
                                                                                                                                
2:54:28 PM                                                                                                                    
                                                                                                                                
Representative Carpenter referred to  page 7 and highlighted                                                                    
a  discrepancy in  the licensing  fees  charged between  the                                                                    
years FY 17 and FY 19.  He noted that the fees were $179,000                                                                    
in FY 17 and $730,000 in FY 18.                                                                                                 
                                                                                                                                
Ms.  Curtis  responded that  the  board  was on  a  biannual                                                                    
renewal cycle  causing an influx  in fees every  other year.                                                                    
She  relayed  that  the  off-year  fees  collected  included                                                                    
people getting  licensed in between  or renewing  a license.                                                                    
She explained it  was the reason an audit  included at least                                                                    
three years to see one full licensing cycle.                                                                                    
                                                                                                                                
2:55:26 PM                                                                                                                    
                                                                                                                                
Representative Edgmon  knew from  his time on  the committee                                                                    
that Ms. Curtis had done  many audits. He remarked there had                                                                    
been four  bills in  the last two  days with  wildly varying                                                                    
fees. He  asked if it  was Ms. Curtis's experience  that the                                                                    
user fees were established  board-by-board with no regard to                                                                    
any uniformity  standards or benchmarking. For  example, for                                                                    
the  current bill,  fees  occurred under  the  realm of  the                                                                    
Board  of  Public  Accountancy   and  were  not  related  to                                                                    
sportfishing, midwives, or other.                                                                                               
                                                                                                                                
Ms. Curtis responded that statute  specified a fee had to be                                                                    
set to cover the cost  of regulation. She explained that the                                                                    
cost  of   regulating  each  occupation  was   tracked.  She                                                                    
elaborated that  the variance  in fees  was the  variance in                                                                    
regulating  the  occupation,  which   was  often  driven  by                                                                    
investigations (as was the case  in the midwifery board seen                                                                    
by  the  committee the  previous  day).  She furthered  that                                                                    
boards with a large number  of licensees (e.g., the Board of                                                                    
Nursing) tended to have lower  fees because they were spread                                                                    
out over a larger number of people.                                                                                             
                                                                                                                                
Representative Edgmon  thought the information  was helpful.                                                                    
He stated it  helped him understand why  the midwifery board                                                                    
fee was  $3,800 for  two years versus  sportfishing licenses                                                                    
and nonresident fees in the  $100 to $200 range. He remarked                                                                    
on the  long schedule for  the Board of  Public Accountancy.                                                                    
He  asked for  verification that  the money  would be  swept                                                                    
from the General Fund if the reverse sweep did not occur.                                                                       
                                                                                                                                
Ms.  Curtis responded  in the  negative.  She clarified  the                                                                    
money did  not go into a  sub-fund of the General  Fund that                                                                    
was subject to the sweep.  She elaborated that the fees were                                                                    
not dedicated revenue and went  into the General Fund; there                                                                    
was  no  separate  tracking  at   the  sub-fund  level.  She                                                                    
explained that  the appropriation  to expend  for regulation                                                                    
of  boards was  at  the  division level  and  came from  the                                                                    
General Fund.                                                                                                                   
                                                                                                                                
Representative Edgmon  asked for verification that  the fees                                                                    
would  not be  subject to  the  annual vote  on the  reverse                                                                    
sweep.                                                                                                                          
                                                                                                                                
Ms. Curtis agreed.                                                                                                              
                                                                                                                                
2:58:23 PM                                                                                                                    
                                                                                                                                
Representative Josephson  stated his understanding  that the                                                                    
General Fund was sweepable.                                                                                                     
                                                                                                                                
Ms.  Curtis replied  that certain  sub-funds of  the General                                                                    
Fund were sweepable.                                                                                                            
                                                                                                                                
Representative Josephson noted that  in July 2019 the Senate                                                                    
Finance  Committee had  discussed how  the dollars  could be                                                                    
swept away  and there  had been  consideration of  the legal                                                                    
consequences of that potential action.                                                                                          
                                                                                                                                
2:59:13 PM                                                                                                                    
                                                                                                                                
Representative Wool asked  about the length of  time it took                                                                    
to process an  investigation, which was in part  due to CBPL                                                                    
staffing. He  remarked that the audit  recommended an eight-                                                                    
year extension. He pointed out  that a separate audit of the                                                                    
midwifery board  included the board chair's  response to the                                                                    
audit. The  midwifery board chair  had pointed out  that the                                                                    
length of time  it took to process an  investigation was not                                                                    
the board's  fault and  was due  to CBPL.  He stated  that a                                                                    
board was  being charged  with being  deficient in  its time                                                                    
response for an issue that resided with the department.                                                                         
                                                                                                                                
Ms.  Curtis addressed  her testimony  from the  previous day                                                                    
regarding  the  midwifery board.  She  had  stated that  the                                                                    
board's  term  of  extension was  two  years,  significantly                                                                    
below  eight years  due to  an issue  identified during  the                                                                    
audit  and the  board's  reluctance  to recommend  statutory                                                                    
changes in  the public's  interest. She elaborated  that the                                                                    
board  did  not  want  to   increase  fees,  which  was  not                                                                    
appropriate. She could not speak  to the issue identified in                                                                    
the  audit on  the  record. She  relayed  that her  separate                                                                    
recommendation relating to  the timeliness of investigations                                                                    
did not factor into  her recommended extension. She regarded                                                                    
the nature of a health  board's investigations and impact to                                                                    
public  safety   as  more  important  and   more  likely  to                                                                    
influence  a recommended  term of  extension  as opposed  to                                                                    
boards like public accountancy  and barbers and hairdressers                                                                    
that did not have as tight a connection to public health.                                                                       
                                                                                                                                
3:01:54 PM                                                                                                                    
                                                                                                                                
Representative  Wool  understood   that  health  and  public                                                                    
safety  prevailed over  accountancy. However,  the issue  of                                                                    
timeliness had been addressed by  the audit as something the                                                                    
board needed  to respond to.  He highlighted the issue  of a                                                                    
CBPL staff shortage impacting timeliness.  He felt that some                                                                    
of the boards  were being unfairly called  out for something                                                                    
beyond their control.                                                                                                           
                                                                                                                                
Ms. Curtis  replied that  the issue had  been raised  to her                                                                    
multiple  times   from  board   chairs  and   House  Finance                                                                    
Committee  members. She  recognized  that CBPL  was not  the                                                                    
board itself;  however, it was board  support. She explained                                                                    
that the  audit was  a legislative oversight  mechanism, and                                                                    
she always brought the issue  to legislators' attention when                                                                    
the support was not as good  as it should be and whether she                                                                    
believed it  impacted the timeline  of coming back in  to do                                                                    
more legislative  oversight. She stated there  were numerous                                                                    
things  that could  impact  delays  apart from  insufficient                                                                    
staff. Whether  a board had good  procedures and supervision                                                                    
also impacted delays.                                                                                                           
                                                                                                                                
Ms.  Curtis reported  that  the audit  did  not address  the                                                                    
specifics of why  something was not working. She  had done a                                                                    
deeper   dive  in   2005  when   she  had   looked  at   the                                                                    
investigative  function  and  had found  other  contributing                                                                    
aspects related to how it  was organized. She clarified that                                                                    
the  current audit  was  not a  specific  evaluation of  the                                                                    
investigative section.  The audit highlighted  problems. She                                                                    
believed  that  the  delay  in 40  percent  of  the  board's                                                                    
investigations indicated  that things could be  done faster.                                                                    
She stated  one would expect  that if  the cases were  not a                                                                    
priority or  the evidence could  not be obtained,  the cases                                                                    
should be cleaned  up and closed out. She  stated there were                                                                    
many  different   things  that   could  contribute   to  the                                                                    
situation.                                                                                                                      
                                                                                                                                
3:04:33 PM                                                                                                                    
                                                                                                                                
Representative  Carpenter stated  there had  been discussion                                                                    
on money and potential staff  shortages and whether it would                                                                    
help  to  solve  problems.  He  referenced  the  unjustified                                                                    
inactivity  on 40  percent of  the board  investigations. He                                                                    
noted   that  the   audit   specifically  identified   staff                                                                    
turnover,   competing   priorities,   and  an   absence   of                                                                    
documentation  showing supervisory  reviews were  occurring.                                                                    
He   noted  that   Ms.  Curtis   had  just   mentioned  good                                                                    
procedures. He thought  Ms. Curtis was making  the case that                                                                    
better  management  would  help  to  address  the  issue  of                                                                    
inactivity. He asked if the statement was fair.                                                                                 
                                                                                                                                
Ms. Curtis  responded that  she had not  done a  deep enough                                                                    
dive to say specifically what  the department should do. The                                                                    
auditors typically  asked the  department why  something was                                                                    
happening,  and the  department provided  the cause  such as                                                                    
competing priorities and turnover.  She thought Ms. Chambers                                                                    
would like to speak to the issue.                                                                                               
                                                                                                                                
Ms. Chambers responded that  management of the investigative                                                                    
process  was  important  to  CBPL,   and  the  division  had                                                                    
operating  procedures followed  by  its  team. The  division                                                                    
agreed  with the  audit that  it could  improve, and  it had                                                                    
taken steps to hire  an additional supervisor. Additionally,                                                                    
the  division   had  adjusted  some  of   its  policies  and                                                                    
procedures to  ensure it was clarifying  priority cases. She                                                                    
reported  there was  a  focus on  life,  health, and  safety                                                                    
cases.                                                                                                                          
                                                                                                                                
Ms. Chambers  explained that the auditor  had identified the                                                                    
concern that  the division's  team was  not meeting  its own                                                                    
procedures  in  terms  of  documenting  case  activity.  The                                                                    
division was  continuing to add resources  and doubling back                                                                    
to ensure  its investigators and  three-member investigative                                                                    
team  were ensuring  the documentation  happened. She  noted                                                                    
that on  the next  audit of any  of the  division's programs                                                                    
(stretched across  21 licensing  boards) the  auditors would                                                                    
be able  to see the  reasons why a  case may have  taken too                                                                    
long  according to  the division's  standards. She  provided                                                                    
examples  such as  a respondent  not being  forthcoming with                                                                    
information, inability  to reach witnesses,  staff turnover,                                                                    
and/or   competing  health   and   safety  priorities.   She                                                                    
explained  that  it would  enable  the  auditor to  see  the                                                                    
reason and  a finding like  the one included in  the current                                                                    
audit  would  not  occur. The  division  was  continuing  to                                                                    
improve its management and  always appreciated the auditors'                                                                    
feedback.                                                                                                                       
                                                                                                                                
3:07:39 PM                                                                                                                    
                                                                                                                                
Representative Carpenter remarked that  the question was not                                                                    
intended to poke anyone in  the eye. He stated his intention                                                                    
to highlight that if the  division was not following its own                                                                    
procedures, it could be remedied  fairly easily. He believed                                                                    
it was not  about needing more resources, but  merely a will                                                                    
for the division to follow  its procedures in some cases. He                                                                    
thought the  issue was primarily management  related and not                                                                    
funding related.                                                                                                                
                                                                                                                                
Representative Josephson looked  at page 6 of  the audit and                                                                    
the 101 board related cases  spanning 3.5 years. He wondered                                                                    
to what  degree the cases were  essentially complaints about                                                                    
an  accountant's negligence.  For example,  if a  person was                                                                    
audited or they  did not like their return.  He compared the                                                                    
first  examples  to  an accountant  missing  a  deadline  or                                                                    
having a  substance abuse problem,  which was  something the                                                                    
board may  want to know  about. He  wondered if there  was a                                                                    
clearing   system  where   complainants   were  told   their                                                                    
complaint was outside the division's jurisdiction.                                                                              
                                                                                                                                
Ms. Curtis  responded that there  was a process in  place if                                                                    
something was not in the  division's jurisdiction. She noted                                                                    
the  101  number  pertained  to  complaints  or  cases.  She                                                                    
explained that the division had  a process to close them out                                                                    
and  not pursue  them. There  was a  complaint phase  and an                                                                    
investigative phase, and one had  to meet a threshold before                                                                    
it was investigated.                                                                                                            
                                                                                                                                
Co-Chair Merrick moved to invited testimony.                                                                                    
                                                                                                                                
3:10:07 PM                                                                                                                    
                                                                                                                                
LESLIE SCHMITZ,  CHAIR, ALASKA BOARD OF  PUBLIC ACCOUNTANCY,                                                                    
ANCHORAGE  (via teleconference),  thanked the  audit process                                                                    
for  the recommendation  of the  maximum extension  of eight                                                                    
years. She relayed that the  board made every effort to stay                                                                    
interactive with stakeholders and  licensees and it tried to                                                                    
reach out to the people it  was regulating or the people who                                                                    
were  looking to  the board  to protect  public safety.  The                                                                    
board  also  made  every  attempt  to  stay  active  at  the                                                                    
national level  to address issues affecting  the profession.                                                                    
She elaborated  that the  board maintained  ongoing projects                                                                    
to  update and  modernize  its statutes  and regulations  in                                                                    
order  to   remain  current  with   the  direction   of  the                                                                    
profession. She thanked the committee for hearing the bill.                                                                     
                                                                                                                                
3:11:35 PM                                                                                                                    
                                                                                                                                
DON RULIEN,  PAST MEMBER, STATE BOARD  OF PUBLIC ACCOUNTANCY                                                                    
and CURRENT  MEMBER, ALASKA SOCIETY OF  CPAs, ANCHORAGE (via                                                                    
teleconference),  spoke in  support of  HB 126.  He provided                                                                    
detail about  his work in the  field and term on  the board.                                                                    
He stated that the State  Board of Public Accountancy played                                                                    
an integral part in providing  protection to the public that                                                                    
ensured  all  CPAs  meet   all  statutory  requirements  and                                                                    
regulations. He  appreciated the committee hearing  the bill                                                                    
and supported the recommended eight-year extension.                                                                             
                                                                                                                                
3:12:55 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick OPENED public testimony.                                                                                       
                                                                                                                                
3:13:11 PM                                                                                                                    
                                                                                                                                
CRISTA  BURSON, PRESIDENT  AND CEO,  ALASKA SOCIETY  OF CPAs                                                                    
(AKCPA),  ANCHORAGE (via  teleconference), supported  HB 126                                                                    
in extending  the termination  date of  the Board  of Public                                                                    
Accountancy.  She  reviewed the  duties  of  the board.  She                                                                    
highlighted that  the board was inclusive  of all interested                                                                    
parties  including the  AKCPA. She  detailed that  the AKCPA                                                                    
and the Board of Public  Accountancy had a very positive and                                                                    
collaborative  relationship. She  thanked the  committee for                                                                    
its consideration.                                                                                                              
                                                                                                                                
3:14:17 PM                                                                                                                    
                                                                                                                                
Co-Chair  Merrick CLOSED  public  testimony.  She asked  the                                                                    
department to review the fiscal note.                                                                                           
                                                                                                                                
Ms. Chambers  reviewed the fiscal  note. The  note reflected                                                                    
that the  board would sunset  if the  bill did not  pass and                                                                    
there would  no longer be  the $25,600 necessary  to support                                                                    
the activities of the board.  The note reflected the $25,600                                                                    
in  the  outyears to  support  the  board's activities.  She                                                                    
remarked  that sometimes  fiscal notes  for extension  bills                                                                    
were  not  intuitive.  She   explained  that  the  licensing                                                                    
program  would continue  if the  board were  to sunset.  She                                                                    
clarified  that  the note  did  not  show  the cost  of  the                                                                    
licensing  program;  it showed  the  cost  for board  member                                                                    
travel, the  advertising of  board meetings,  and additional                                                                    
meals   and  incidentals   board   members  received   while                                                                    
traveling.                                                                                                                      
                                                                                                                                
Co-Chair Merrick indicated amendments  for the bill were due                                                                    
to her office by the end of Saturday, April 17, 2021.                                                                           
                                                                                                                                
HB  126  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair  Merrick reviewed  the schedule  for the  following                                                                    
meeting.                                                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
3:16:10 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:16 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB 22 Letters of Support 3.22.21.pdf HFIN 4/13/2021 1:30:00 PM
SB 22
SB 22 Support Doc DF&G Hunting License Surcharge Revenue 1.21.21.pdf HFIN 4/13/2021 1:30:00 PM
SB 22
SB 22 Sponsor Statement 2.12.21.pdf HFIN 4/13/2021 1:30:00 PM
SB 22
SB 22 Support Doc DF&G IM Info Sheet 2.5.21.pdf HFIN 4/13/2021 1:30:00 PM
SB 22
SB 22 Support Doc DWC IM Activities and Spending FY18-FY20 2.10.21.pdf HFIN 4/13/2021 1:30:00 PM
SB 22
HB 126 Board of Public Accountancy Roster 040721.pdf HFIN 4/13/2021 1:30:00 PM
HB 126
HB 126 Supporting Document - Board of Public Accountancy Sunset Review Report 3.30.21.pdf HFIN 4/13/2021 1:30:00 PM
HB 126
HB 126 Boards & Commissions Fact Sheet.pdf HFIN 4/13/2021 1:30:00 PM
HB 126
HB 126-AKCPA 03052021 HB126 Letter.pdf HFIN 4/13/2021 1:30:00 PM
SFIN 5/17/2021 1:00:00 PM
HB 126
HB 126-Board of Public Accountancy Sunset Review Report (1).pdf HFIN 4/13/2021 1:30:00 PM
SFIN 5/17/2021 1:00:00 PM
HB 126
HB 126-Letter supporting AK BOPA.pdf HFIN 4/13/2021 1:30:00 PM
HB 126
HB 126-Rodgers Support.pdf HFIN 4/13/2021 1:30:00 PM
HB 126
HB126 Sponsor Statement.pdf HFIN 4/13/2021 1:30:00 PM
HB 126
HB126-letter of support-Rulien.pdf HFIN 4/13/2021 1:30:00 PM
HB 126
RJG A Professional Corporation supports HB126.msg HFIN 4/13/2021 1:30:00 PM
HB 126
SB 22 Alaska Wildlife Alliance opposition 041321.pdf HFIN 4/13/2021 1:30:00 PM
SB 22