02/20/2020 11:00 AM House FISHERIES
| Audio | Topic | 
|---|---|
| Start | |
| HB218 | |
| HB247 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 218 | TELECONFERENCED | |
| *+ | HB 247 | TELECONFERENCED | |
| + | TELECONFERENCED | 
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                       February 20, 2020                                                                                        
                           11:05 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Louise Stutes, Chair                                                                                             
Representative Chuck Kopp                                                                                                       
Representative Jonathan Kreiss-Tomkins                                                                                          
Representative Geran Tarr                                                                                                       
Representative Sarah Vance                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Bryce Edgmon                                                                                                     
Representative Mark Neuman                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 218                                                                                                              
"An Act relating to salt water sport fishing operators and salt                                                                 
water sport fishing guides; and providing for an effective                                                                      
date."                                                                                                                          
                                                                                                                                
     - MOVED CSHB 218(FSH) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 247                                                                                                              
"An  Act relating  to the  fish and  game fund;  establishing the                                                               
sport fishing  enhancement surcharge;  relating to the  repeal of                                                               
the sport fishing facility surcharge;  providing for an effective                                                               
date  by amending  the effective  date of  sec. 21,  ch. 18,  SLA                                                               
2016; and providing for an effective date."                                                                                     
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 218                                                                                                                  
SHORT TITLE: SALT WATER FISHING: OPERATORS/GUIDES                                                                               
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/27/20       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/27/20       (H)       FSH, RES, FIN                                                                                          
02/06/20       (H)       FSH AT 11:00 AM GRUENBERG 120                                                                          
02/06/20       (H)       Heard & Held                                                                                           
02/06/20       (H)       MINUTE(FSH)                                                                                            
02/13/20       (H)       FSH AT 11:00 AM GRUENBERG 120                                                                          
02/13/20       (H)       Heard & Held                                                                                           
02/13/20       (H)       MINUTE(FSH)                                                                                            
02/20/20       (H)       FSH AT 11:00 AM GRUENBERG 120                                                                          
                                                                                                                                
BILL: HB 247                                                                                                                  
SHORT TITLE: SPORT FISHING ENHANCEMENT SURCHARGE                                                                                
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/12/20       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/12/20       (H)       FSH, FIN                                                                                               
02/20/20       (H)       FSH AT 11:00 AM GRUENBERG 120                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ERIN HARRINGTON, Staff                                                                                                          
Representative Jonathan Kreiss-Tomkins                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Offered explanations on Amendment 1 and                                                                  
Amendment 2 to HB 218, on behalf of Representative Jonathan                                                                     
Kreiss-Tomkins, prime sponsor.                                                                                                  
                                                                                                                                
TOM TAUBE, Deputy Director                                                                                                      
Division of Sport Fish                                                                                                          
Alaska Department of Fish & Game (ADF&G)                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Offered comments on Amendment 1 to HB 218.                                                               
                                                                                                                                
DOUG VINCENT-LANG, Commissioner                                                                                                 
Alaska Department of Fish & Game (ADF&G)                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 247 on behalf of the House                                                                  
Rules Committee, by request of the governor.                                                                                    
                                                                                                                                
RACHEL HANKE, Legislative Liaison                                                                                               
Office of the Commissioner                                                                                                      
Alaska Department of Fish & Game (ADF&G)                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Offered an explanation on the Sectional                                                                  
Analysis for HB 247.                                                                                                            
                                                                                                                                
TOM TAUBE, Deputy Director                                                                                                      
Division of Sport Fish                                                                                                          
Alaska Department of Fish & Game (ADF&G)                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions pertaining to HB 247.                                                                 
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
11:05:33 AM                                                                                                                   
                                                                                                                                
CHAIR  LOUISE  STUTES  called  the  House  Special  Committee  on                                                             
Fisheries  meeting  to  order  at  11:05  a.m.    Representatives                                                               
Stutes, Kopp, Kreiss-Tomkins, and Vance  were present at the call                                                               
to  order.   Representative Tarr  arrived as  the meeting  was in                                                               
progress.                                                                                                                       
                                                                                                                                
          HB 218-SALT WATER FISHING: OPERATORS/GUIDES                                                                       
                                                                                                                                
11:06:51 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES announced that the  first order of business would be                                                               
HOUSE BILL NO. 218, "An Act  relating to salt water sport fishing                                                               
operators and salt water sport  fishing guides; and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
11:07:56 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS moved to adopt Amendment 1,                                                                       
labeled 31-GH2192\A.1, Klein, 2/18/20, which read as follows:                                                                   
                                                                                                                                
     Page 2, following line 5:                                                                                                  
          Insert a new paragraph to read:                                                                                       
               "(3)  signs a sworn statement identifying                                                                        
          whether the person is a state resident or a                                                                           
     nonresident;"                                                                                                              
                                                                                                                                
     Renumber the following paragraphs accordingly.                                                                             
                                                                                                                                
     Page 3, following line 8:                                                                                                  
          Insert a new paragraph to read:                                                                                       
               "(4)  signs a sworn statement identifying                                                                        
          whether the person is a state resident or a                                                                           
     nonresident;"                                                                                                              
                                                                                                                                
     Renumber the following paragraphs accordingly.                                                                             
                                                                                                                                
11:08:05 AM                                                                                                                   
                                                                                                                                
CHAIR  STUTES  objected  to  the   motion,  for  the  purpose  of                                                               
discussion.                                                                                                                     
                                                                                                                                
11:08:22 AM                                                                                                                   
                                                                                                                                
ERIN HARRINGTON,  Staff, Representative  Jonathan Kreiss-Tomkins,                                                               
Alaska State  Legislature, on  behalf of  Representative Jonathan                                                               
Kreiss-Tomkins, prime  sponsor of HB 218,  offered an explanation                                                               
on Amendment  1.   She stated  that the  amendment would  add the                                                               
requirement that people  applying for licenses under  HB 218 must                                                               
certify whether  they are  residents or  nonresidents.   She said                                                               
that  it  would provide  a  data  point  to help  understand  the                                                               
characteristics  of the  economic activity  and participation  in                                                               
this sector.                                                                                                                    
                                                                                                                                
11:08:55 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  VANCE  asked why  the  language  in the  proposed                                                               
amendment read  "signs a sworn statement  identifying whether the                                                               
person is  a state resident  or a nonresident" instead  of having                                                               
the  requirement  be  proof  of residency,  such  as  a  driver's                                                               
license.                                                                                                                        
                                                                                                                                
11:09:22 AM                                                                                                                   
                                                                                                                                
MS. HARRINGTON replied, using  sport fishing license applications                                                               
currently used  in Alaska  as an  example, that  this is  a sworn                                                               
document which designates whether the  applicant is a resident or                                                               
nonresident,  the   date  a  residency  began,   and  requires  a                                                               
signature   making  the   document   a  suitable   "certification                                                               
thereof."  In  response to a follow-up question,  she stated that                                                               
it is  anticipated that in  the regulatory process and  design of                                                               
the  proposed application,  the burden  would lie  on the  Alaska                                                               
Department  of  Fish   &  Game  (ADF&G)  to   determine  what  is                                                               
considered suitable  for certification.   She explained  that she                                                               
had  used the  Sport Fishing  License application  as an  example                                                               
because it was familiar and understood  to have been put in place                                                               
by ADF&G to  follow a directive in statute;  not necessarily that                                                               
the proposed application would look just like it.                                                                               
                                                                                                                                
11:10:42 AM                                                                                                                   
                                                                                                                                
TOM  TAUBE,  Deputy  Director, Division  of  Sport  Fish,  Alaska                                                               
Department  of Fish  & Game  (ADF&G), commented  that similar  to                                                               
Representative  Vance's comment  on  the  sworn statement,  ADF&G                                                               
sees that  HB 218 would  already require  an applicant to  hold a                                                               
Sport Fishing  License from the  state; therefore,  the applicant                                                               
is  already  signing  an   affidavit  stating  his/her  residency                                                               
status,  and it  seems  that  there is  some  duplication in  the                                                               
second portion of the proposed amendment.                                                                                       
                                                                                                                                
11:11:41 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 11:11 a.m. to 11:13 a.m.                                                                     
                                                                                                                                
11:13:30 AM                                                                                                                   
                                                                                                                                
MS.  HARRINGTON stated  that during  the  conversation that  just                                                               
took place [during the at-ease]  with ADF&G, it was distinguished                                                               
that the requirement for a  Sport Fishing License exists under HB
218,  and that  the  application does  require  a description  of                                                               
residency;   however,  that   would  be   a  separate   piece  of                                                               
information living in  a separate data house.  The  data for both                                                               
applications would  be collected  by ADF&G, but  the goal  of the                                                               
proposed amendment  is to clearly understand  the characteristics                                                               
of  the  sector  of  participants  specific  to  the  legislation                                                               
proposed by  HB 218.   She summarized  that, although  she didn't                                                               
want to  personally put  the ADF&G's support  on the  record, her                                                               
understanding is that ADF&G understands the distinction.                                                                        
                                                                                                                                
11:14:17 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES asked  to have ADF&G offer  firsthand information on                                                               
Ms. Harrington's comments.                                                                                                      
                                                                                                                                
11:14:30 AM                                                                                                                   
                                                                                                                                
MR. TAUBE stated that based  upon the discussion mentioned by Ms.                                                               
Harrington, ADF&G supports Amendment 1.                                                                                         
                                                                                                                                
11:14:42 AM                                                                                                                   
                                                                                                                                
CHAIR  STUTES,  after ascertaining  that  there  were no  further                                                               
questions on  Amendment 1, withdrew  her objection.   There being                                                               
no further objection, Amendment 1 was adopted.                                                                                  
                                                                                                                                
11:14:58 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS   moved  to  adopt   Amendment  2,                                                               
labeled 31-GH2192\A.2, Klein, 2/19/20, which read as follows:                                                                   
                                                                                                                                
     Page 1, lines 1 - 2:                                                                                                       
          Delete "operators and salt water sport fishing                                                                      
     guides"                                                                                                                  
                                                                                                                                
     Page 5, following line 5:                                                                                                  
          Insert a new section to read:                                                                                         
          "Sec. 16.40.287. Reports from unguided rented                                                                       
     boats equipped with gear for  salt water sport fishing.                                                                  
     (a)  The department  shall collect  information on  the                                                                    
     rental of  unguided boats equipped  with gear  for salt                                                                    
     water sport fishing, including                                                                                             
               (1) the name and address of the person                                                                           
     renting the boat;                                                                                                          
               (2) the name and address of the person                                                                           
     offering the boat for rent;                                                                                                
               (3) the stated reason for the boat rental;                                                                       
               (4) a declaration of whether the person                                                                          
     renting the  boat used  the boat  for salt  water sport                                                                    
     fishing; and                                                                                                               
               (5)  the sport fishing license number of any                                                                     
     person who used  the boat for salt  water sport fishing                                                                    
     during the rental period.                                                                                                  
          (b)  A person who rents an unguided boat equipped                                                                     
     with  gear for  salt water  sport fishing  shall record                                                                    
     the information required in (a) of this section.                                                                           
          (c)  A person who, for compensation or with the                                                                       
     intent to  receive compensation, offers  unguided boats                                                                    
     equipped  with gear  for salt  water sport  fishing for                                                                    
     rent shall  collect the information required  in (a) of                                                                    
     this  section   and  report  the  information   to  the                                                                    
     department.                                                                                                                
          (d)  A person who is required to report or                                                                            
     collect information under this  section may not provide                                                                    
     false information or omit material facts in a report.                                                                      
          (e)  The board may adopt regulations under                                                                            
     AS 44.62  (Administrative Procedure  Act) to  implement                                                                    
     this section.                                                                                                              
          (f)  In this section, "gear" includes rods,                                                                           
     reels,  nets, gaffs,  downriggers, fish  finders, bait,                                                                    
     tackle, and fishing traps and pots."                                                                                       
                                                                                                                                
11:15:04 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES objected to the motion, for the purpose of                                                                         
discussion.                                                                                                                     
                                                                                                                                
11:15:11 AM                                                                                                                   
                                                                                                                                
MS. HARRINGTON offered  an explanation on Amendment 2  to HB 218.                                                               
She  explained that  Amendment 2  would attempt  to begin  to put                                                               
some  information  in  place  to address  the  nebulous  area  of                                                               
unguided rental  vessels.  She  explained that  public perception                                                               
is that  there is growth in  this section of the  fishing sector,                                                               
but currently there is no  collected data which helps to describe                                                               
that growth  or the characteristics  of that sector.   She stated                                                               
that  the North  Pacific Fishery  Management Council  (NPFMC) has                                                               
been  discussing  this  topic  and has  an  analysis  from  staff                                                               
looking into this  issue in order to understand the  sector.  She                                                               
expressed that this  is most important regarding  halibut, as the                                                               
halibut  fisheries  are  highly  managed,  regulated,  and  fully                                                               
allocated.   She  added that  participation in  halibut fisheries                                                               
takes place from commercial vessels,  a commercial guided sector,                                                               
and from individuals using sport fishing licenses.                                                                              
                                                                                                                                
MS. HARRINGTON  stated that the concern  regarding people renting                                                               
boats to participate in unguided  harvesting, is that there might                                                               
be significant growth  in what is ultimately  a commercial access                                                               
point to a resource that is  not being quantified or described in                                                               
a way  that allows  for a  place in the  management scheme.   She                                                               
added  that  the  proposed  amendment   would  attempt  to  begin                                                               
collection  of baseline  data to  describe  the unguided  fishing                                                               
sector's  participation  in  the   commercial  use  of  fisheries                                                               
resources.                                                                                                                      
                                                                                                                                
MS.  HARRINGTON clarified  that  Amendment  2 would  specifically                                                               
propose  "to  do  a  few   things,  and  there  are  some  things                                                               
specifically that  it does not propose  to do."  She  stated that                                                               
the proposed amendment would not  require enumeration of the fish                                                               
harvested from  a boat; this would  not be a logbook  or a count.                                                               
She said that the legislation  proposed under the amendment would                                                               
acquire  information   on  businesses  renting  boats,   and  the                                                               
individuals renting those  boats to confirm that  they have sport                                                               
fishing licenses and determine whether  they are fishing from the                                                               
rented vessels.                                                                                                                 
                                                                                                                                
MS.  HARRINGTON,  speaking  anecdotally,  said  that  she  had  a                                                               
conversation recently  with a well-informed member  of the guided                                                               
charter sector, and this individual  informed her that a business                                                               
he is familiar  with just bought 10 additional vessels  to add to                                                               
its fleet,  for operations in  a small Southeast  Alaska village.                                                               
She remarked that  10 additional boats being  fully utilized over                                                               
the course of a week could add  as many as 80 angler days, which,                                                               
when added  up across  all businesses and  regions in  the state,                                                               
represents an  unfathomable impact on  a resource that  is highly                                                               
regulated and managed.   She added that this  resource is managed                                                               
by  the  State   of  Alaska  in  partnership   with  the  federal                                                               
government  and through  treaties  with Canada.   She  summarized                                                               
that the legislation proposed under  this amendment would attempt                                                               
to gain some understanding on  what impact this sector might have                                                               
on Alaska's fisheries.                                                                                                          
                                                                                                                                
11:18:55 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE VANCE  asked why  Amendment 2 shouldn't  propose a                                                               
fish  count in  addition to  collecting  data on  who offers  the                                                               
service  and the  gear.   She expressed  that this  is a  limited                                                               
resource and  wondered whether there should  be oversight without                                                               
a count attached to it.                                                                                                         
                                                                                                                                
MS. HARRINGTON  replied that the  proposed amendment  is intended                                                               
to  be  a  "stair  step."   She  expressed  that  ultimately  the                                                               
objective  would  be   to  understand  the  full   scope  of  the                                                               
participation  of this  sector  on  fisheries, including  harvest                                                               
retention.  She  added that this would be a  larger, more complex                                                               
program which  would require a  lot of  resources to bring  it to                                                               
bear, and Amendment 2 is viewed as a first step towards that.                                                                   
                                                                                                                                
11:20:14 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS commented that  in a "perfect world                                                               
all equal," it would be ideal  to know how many halibut are being                                                               
caught  by the  unguided charter  sector.   He  remarked that  in                                                               
deference to the administrative  complexity involved in gathering                                                               
all that information,  it would make sense to "start  with a very                                                               
basic level of data."                                                                                                           
                                                                                                                                
11:20:58 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE VANCE  asked what  the additional burden  would be                                                               
to require a  logbook program for the unguided  charter sector in                                                               
the  same venue  as  the program  proposed  for guided  charters,                                                               
under HB 218.                                                                                                                   
                                                                                                                                
11:21:36 AM                                                                                                                   
                                                                                                                                
MS. HARRIGNTON answered that one  of the things Amendment 2 would                                                               
allow is for a beginning  in understanding the characteristics of                                                               
this  sector.   As an  example,  she said  that a  boat could  be                                                               
rented and used for:  sport  fishing through an Airbnb; a club of                                                               
some sort;  a remote cabin with  "a skiff pulled up  in the weeds                                                               
outside of  it"; or  kayaks.   She stated that  it is  a "complex                                                               
world," and  the proposed  amendment could be  the first  step in                                                               
getting  to  the  point  of   understanding  it  well  enough  to                                                               
implement  a  rational  regulatory  or  reporting  scheme.    She                                                               
explained  that the  scale of  vessels involved  in the  unguided                                                               
charter sector  is still unknown;  it could be 10,000  vessels or                                                               
200 vessels,  but gathering information  of this kind  could lend                                                               
itself to the next step, which  could then answer the question of                                                               
implementing  a  logbook.    She   expressed  that  many  of  the                                                               
businesses in  the unguided charter  sector might be set  up very                                                               
differently from an  operation in the guided  charter sector, and                                                               
there might  not be  a person  at the  shore consulting  with the                                                               
client.                                                                                                                         
                                                                                                                                
11:23:15 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  VANCE  asked   whether  the  distinction  between                                                               
regulating  personal  use  and  unguided  charters  needs  to  be                                                               
defined  more clearly.    She  expressed that  she  thinks it  is                                                               
important  not  to  infringe  on   Alaskans'  right  to  "go  get                                                               
halibut,"  while being  responsible  for the  allocation of  that                                                               
resource which  is no longer  as plentiful as  it once was.   She                                                               
summarized  that this  could  be  a part  of  the  stair step  as                                                               
mentioned by Ms. Harrington earlier.                                                                                            
                                                                                                                                
MS.  HARRINGTON  responded  that she  understands  Representative                                                               
Vance's question and  she thinks the answer to it  might be "just                                                               
one half  a step  to the side"  and the track  to consider.   She                                                               
recognized  the importance  of the  point made  by Representative                                                               
Vance  for  residents  and  nonresidents  alike  to  be  able  to                                                               
continue  harvesting  Alaska's  fisheries resources  in  a  sport                                                               
fishing environment.   She explained  that the other  two sectors                                                               
of commercial  participation in the  harvest of  halibut, salmon,                                                               
and rockfish  are well known,  and they are held  accountable for                                                               
the fish harvested and required  to participate in processes that                                                               
allocate resources  between them.   She  said that  the processes                                                               
involved  in this  require  intentional deliberation,  tremendous                                                               
effort, negotiation, and attention to  the science involved.  She                                                               
added that a new business  sector coming into these fisheries and                                                               
taking more  of the  resources, without  participating in  any of                                                               
the resource  allocation processes, should  be asked to  become a                                                               
part of the discussion.                                                                                                         
                                                                                                                                
11:25:51 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KOPP asked  whether  the  proposed amendment  had                                                               
been "run  by" the Kenai  River Sportfishing  Association (KRSA).                                                               
He  said  that the  lower  four  miles  of  the Kenai  River  are                                                               
saltwater sport fishing,  and often boats are  rented with guides                                                               
that  bring people  out  for  personal use  dipnet  fishing.   He                                                               
expressed  that the  whole  process can  be  complicated, and  he                                                               
hadn't "even quite figured out in  my head how all that happens."                                                               
He remarked  that he  just wanted  to be  sure that  the proposed                                                               
amendment wouldn't  do anything to inadvertently  hurt operations                                                               
such as these,  which provide  great services that allow for more                                                               
personal use  fish to be  taken; in addition,  the professionally                                                               
guided boats help to keep the chaos down on the river.                                                                          
                                                                                                                                
MS.  HARRINGTON answered  that KRSA  had not  yet been  contacted                                                               
regarding  Amendment   2.    She  explained   that  the  proposed                                                               
amendment had  been received quite  recently, and the  process of                                                               
working on the nuances had only recently begun.                                                                                 
                                                                                                                                
11:27:33 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KOPP commented  that it  looked to  him like  the                                                               
intent  of Amendment  2 could  be maintained  while removing  the                                                               
language from subsection  (b), which reads:  "A  person who rents                                                               
an unguided boat equipped with  gear for salt water sport fishing                                                               
shall record  the information required  in (a) of  this section."                                                               
He  noted that  the language  in  subsection (c)  of Amendment  2                                                               
would require the  person who is receiving the  money for renting                                                               
the boat to  record the same information and report  it to ADF&G.                                                               
He asked what the bill sponsor's thoughts on this might be.                                                                     
                                                                                                                                
11:29:08 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS  replied that  he thinks  there are                                                               
aspects to  the proposed amendment  which need to  be fine-tuned.                                                               
He  remarked that  he had  not considered  the Kenai  River sport                                                               
fisheries  and it  would be  good to  investigate areas  that are                                                               
half saltwater, half freshwater.                                                                                                
                                                                                                                                
11:29:41 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  TARR  asked  whether ADF&G  would  anticipate  an                                                               
increased need for  staff to address the  increased workload, and                                                               
whether there  should be  an adjustment to  the proposed  fees to                                                               
accommodate  for more  resources.   She expressed  that it  seems                                                               
that the  proposed program would require  some significant effort                                                               
from ADF&G.                                                                                                                     
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS  replied that ADF&G had  shared its                                                               
perspective  recently on  what the  proposed  project might  look                                                               
like administratively,  its thoughts  on what  the value  of data                                                               
collection is, and  the end goals from  a management perspective.                                                               
He expressed  that he sees  this as another  area in which  he is                                                               
excited to fine tune the proposed amendment.                                                                                    
                                                                                                                                
11:31:39 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES  stated that  Amendment 2 could  be very  helpful in                                                               
understanding  the   scope  of  activity  related   to  barebones                                                               
charters, which  is particularly pertinent in  halibut fisheries;                                                               
however, she expressed  that she understands the  language of the                                                               
proposed  legislation  needs  fine tuning,  which  Representative                                                               
Kreiss-Tomkins would  be working with the  appropriate parties to                                                               
accomplish.  She expressed that her  hope is that the work on the                                                               
proposed  amendment would  take place  in the  next committee  of                                                               
referral.                                                                                                                       
                                                                                                                                
11:32:21 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS withdrew Amendment 2.                                                                             
                                                                                                                                
11:32:45 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE TARR commented that HB  218 would be moving to the                                                               
House  Resources  Standing  Committee  after it  moved  from  the                                                               
current  committee,  and  she  would be  happy  to  continue  the                                                               
conversation there.                                                                                                             
                                                                                                                                
11:33:11 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE KOPP  moved to report  HB 218, as amended,  out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  218(FSH)  was                                                               
reported from the House Special Committee on Fisheries.                                                                         
                                                                                                                                
11:33:36 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 11:33 a.m. to 11:37 a.m.                                                                     
                                                                                                                                
           HB 247-SPORT FISHING ENHANCEMENT SURCHARGE                                                                       
                                                                                                                                
11:37:30 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES announced that the  final order of business would be                                                               
HOUSE BILL NO.  247, "An Act relating to the  fish and game fund;                                                               
establishing  the sport  fishing enhancement  surcharge; relating                                                               
to the repeal of the  sport fishing facility surcharge; providing                                                               
for an effective date by amending  the effective date of sec. 21,                                                               
ch. 18, SLA 2016; and providing for an effective date."                                                                         
                                                                                                                                
11:38:34 AM                                                                                                                   
                                                                                                                                
DOUG  VINCENT-LANG, Commissioner,  Alaska  Department  of Fish  &                                                               
Game  (ADF&G), presented  HB 247  on  behalf of  the House  Rules                                                               
Committee, by request of the governor.   He expressed that HB 247                                                               
was a priority for ADF&G in  the current legislative session.  He                                                               
said that in 2005 the legislature  had approved a bond measure to                                                               
construct two sport fish hatcheries:   the William Jack Hernandez                                                               
Sport Fish Hatchery in Anchorage  and the Ruth Burnett Sport Fish                                                               
Hatchery in  Fairbanks.  He  expressed that  he is proud  to have                                                               
been  personally  involved  in   the  design,  construction,  and                                                               
financing  of  the  bills  which  were  passed  and  allowed  the                                                               
construction of  the hatcheries.   He expressed that in  order to                                                               
receive the bond, ADF&G crafted  an unprecedented repayment plan;                                                               
a surcharge  was added  to sport fishing  licenses, all  of which                                                               
went  directly  to  the  repayment of  the  bond,  less  $500,000                                                               
annually for hatchery production in  Southeast Alaska.  He stated                                                               
that the average  collection from 2013 to 2018  was $6.4 million.                                                               
Most of  the surcharge was  levied to nonresident anglers  and no                                                               
general funds were used for the  repayment of the bond under this                                                               
unprecedented  strategy; the  bonds would  be paid  for by  sport                                                               
anglers, the primary beneficiaries of the hatchery.                                                                             
                                                                                                                                
COMMISSIONER  VINCENT-LANG remarked  that  is  important to  note                                                               
that $500,000 of the surcharge  was dedicated annually to support                                                               
sport  fishing in  Southeast Alaska;  this  was done  recognizing                                                               
that part  of license fees  would be collected from  anglers only                                                               
fishing  in  Southeast  Alaska.   He  stated  that  this  allowed                                                               
hatchery  production to  be expanded  in Southeast  Alaska, which                                                               
was critical  given the  status of  its King  salmon stocks.   He                                                               
remarked  that   significant  sport  fishing   opportunities  are                                                               
provided  through  stocking  efforts   that  are  funded  by  the                                                               
surcharge.   He expressed that the  plan has worked so  well that                                                               
ADF&G is paying the bond back  five years early, in calendar year                                                               
2020.  A promise  was made at the inception of  the bond that the                                                               
surcharge would  go away  as soon  as the  bond was  paid.   As a                                                               
result,  the  surcharge  and  all  associated  statutes  will  be                                                               
repealed at the end  of calendar year 2020.  He  said he had made                                                               
that promise  when he was part  of drafting the bill.   He stated                                                               
that he  realized what this  funding source could do  to maintain                                                               
hatchery  operations,  but  with the  aforementioned  promise  in                                                               
mind, he  said that  he is  now proposing a  compromise and  a $5                                                               
reduction  from  what is  currently  being  collected across  the                                                               
board;   this  leaves   residents   with  a   $4  surcharge   and                                                               
nonresidents contributing  the "lion's  share" at over  six times                                                               
what  residents would  be contributing  [spreadsheet included  in                                                               
committee packet].   He remarked that this would be  a 34 percent                                                               
reduction now that the hatcheries are paid off.                                                                                 
                                                                                                                                
COMMISSIONER  VINCENT-LANG said  that ADF&G  proposes to  collect                                                               
the additional surcharge  in a separate account  within the ADF&G                                                               
fund to  be accounted  for and  used only  for the  state's sport                                                               
fish  enhancement programs  and sport  fish hatchery  facilities.                                                               
Upon  repayment  of bond  debt  there  is an  immediate  $500,000                                                               
funding  impact  to  Southeast  Alaska   from  the  loss  of  the                                                               
surcharge income, that currently  funds the raising and releasing                                                               
of over  1.4 million chinook  salmon and smolt at  release sights                                                               
targeted to  benefit sport anglers  in Southeast  Alaska's inside                                                               
waters.  He  explained that losing this amount  of funding, which                                                               
supports  existing enhancement  activities, would  be detrimental                                                               
to Southeast Alaska's sport anglers.                                                                                            
                                                                                                                                
11:42:32 AM                                                                                                                   
                                                                                                                                
COMMISSIONER   VINCENT-LANG   pointed   out   that   sport   fish                                                               
enhancement programs  release nearly  7.2 million fish  in nearly                                                               
270  locations  annually,  in  addition to  the  1.4  million  in                                                               
Southeast  Alaska.   He stated  that  when the  Ruth Burnett  and                                                               
William Jack  Hernandez Hatcheries came online  nearly $5 million                                                               
in "DJ  funds" had  to be  redirected in order  to pay  for their                                                               
operation and  maintenance.  Any  needed repairs  and maintenance                                                               
must come from existing operational  budget funds and are usually                                                               
done at  the expense of  other divisional  needs.  He  added that                                                               
there are other  large expensive needs that  were deferred during                                                               
construction and have  yet to be addressed.   As these facilities                                                               
age  the maintenance  needs  will grow,  which  will put  further                                                               
undue burden on  other existing programs.  He  expressed that the                                                               
ability to tap into a source  of funds to cover these needs would                                                               
allow  ADF&G to  sustain  enhanced  production without  impacting                                                               
activities elsewhere.   He said that there is an  average of $6.4                                                               
million  generated revenue  from surcharge  collections on  sport                                                               
fishing  licenses; ADF&G  currently  allocates a  little over  $7                                                               
million to  enhancement-related programs and projects  across the                                                               
division, with most tied to  operation and maintenance of the two                                                               
large facilities in Fairbanks and  Anchorage.  He summarized that                                                               
establishing  a  new  pared  down  enhancement  surcharge  would:                                                               
cover  existing costs  allocated to  enhancement programs,  allow                                                               
for the ability  to reinstate old programs  and projects, address                                                               
deferred  maintenance  and  equipment needs,  ensure  contingency                                                               
funding is  available for unforeseen  events at  these facilities                                                               
without having to approach the  legislature for a supplemental or                                                               
shut  down  a  facility,  and   allow  the  continuation  of  the                                                               
important Southeast Alaska hatchery production.                                                                                 
                                                                                                                                
11:44:29 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES asked  why ADF&G is decreasing the  surcharge by $5,                                                               
when every  year the  ADF&G's budget is  reduced.   She suggested                                                               
that the $5  should be kept and added into  the ADF&G's budget to                                                               
be used for deferred maintenance.                                                                                               
                                                                                                                                
11:45:20 AM                                                                                                                   
                                                                                                                                
COMMISSIONER  VINCENT-LANG replied  that when  he was  helping to                                                               
put together  the legislation to  put the surcharge in  place, he                                                               
made  a  commitment  that  when  the  bonds  were  paid  off  the                                                               
surcharge  would go  away.   He expressed  that he  thinks it  is                                                               
important  to follow  through on  commitments made  early on,  in                                                               
order  to  assure  people  that a  promise  made  regarding  bond                                                               
payments  will at  least be  partially fulfilled  moving forward.                                                               
He  stated that  the goal  with  the proposed  legislation is  to                                                               
strike a compromise that would  allow for the continued operation                                                               
of Southeast  Alaska hatchery production and  provide maintenance                                                               
for the facilities, while still  following through, to the extent                                                               
possible, on reducing the surcharge  amount based on the original                                                               
commitment.                                                                                                                     
                                                                                                                                
CHAIR STUTES remarked that  she appreciates Commissioner Vincent-                                                               
Lang's desire  to follow through  on the original  commitment but                                                               
"times  are  changing," and  with  the  funding for  ADF&G  being                                                               
continually  reduced, she  thinks that  it  should be  up to  the                                                               
legislative  body to  determine whether  the surcharge  should be                                                               
lowered.   She said that  she would  personally like to  see this                                                               
money  stay  within  ADF&G  and be  utilized  for  management  of                                                               
fisheries.                                                                                                                      
                                                                                                                                
11:47:04 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE    TARR   commented    that   she    agreed   with                                                               
Representative Stutes' statement.   She explained that the prices                                                               
for licenses  are already affordable;  there wasn't  any pushback                                                               
from residents  to adjustments that were  recently made regarding                                                               
surcharges under HB 137.   She expressed that given how important                                                               
fisheries are  to all Alaskans, she  would like to see  that they                                                               
have the resources  necessary and she would be  supportive of not                                                               
lowering the fees.                                                                                                              
                                                                                                                                
11:47:52 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE VANCE  asked whether  the proposed changes  to the                                                               
fees would continue in perpetuity or have a sunset date.                                                                        
                                                                                                                                
11:48:15 AM                                                                                                                   
                                                                                                                                
COMMISSIONER VINCENT-LANG  replied that  the proposed  fees would                                                               
continue in perpetuity.                                                                                                         
                                                                                                                                
REPRESENTATIVE  VANCE asked,  if  the surcharges  stayed as  they                                                               
currently are,  whether ADF&G  would have  the discretion  to use                                                               
the funds in the department as  needed, or they would stay in the                                                               
Division of Sport Fish.                                                                                                         
                                                                                                                                
COMMISSIONER  VINCENT-LANG  answered that  the  way  the bill  is                                                               
constructed, any  funds collected through the  surcharge would go                                                               
into a subaccount  of the ADF&G fund which would  be dedicated to                                                               
maintaining and operating the  hatcheries and allowing production                                                               
in Southeast Alaska to continue.                                                                                                
                                                                                                                                
REPRESENTATIVE  VANCE  asked  whether  the  proposed  legislation                                                               
would address all the hatcheries  throughout Alaska or only those                                                               
in Southeast Alaska.                                                                                                            
                                                                                                                                
COMMISSIONER VINCENT-LANG  replied that the  proposed legislation                                                               
would allow Southeast  Alaska production to increase  and, to the                                                               
extent  that  ADF&G  were  to  see needs  for  support  in  sport                                                               
fisheries  in  other  areas  of   the  state,  funding  could  be                                                               
considered on a  case by case basis.  He  emphasized that most of                                                               
the funds would  go to the operation and maintenance  of the Ruth                                                               
Burnett  and William  Jack  Hernandez  Hatcheries, which  provide                                                               
fish for much  of Southcentral Alaska including  the Railbelt and                                                               
Kodiak.   He explained that ADF&G  saw this as an  opportunity to                                                               
work to provide more fishing  opportunities for Southeast Alaska,                                                               
as revenues  were being collected  from sport fishermen  in those                                                               
area.                                                                                                                           
                                                                                                                                
11:50:07 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS, referencing  page 2  and 3  of HB
247,  asked  whether  the  resident/nonresident  differential  is                                                               
required  to  operate  within   constitutional  parameters.    He                                                               
referenced the  Carlson case and  said that  interstate commerce,                                                               
privileges, and immunities govern a lot  of what the state can or                                                               
cannot do regarding the ratio  of resident to nonresident license                                                               
rates.                                                                                                                          
                                                                                                                                
COMMISSIONER VINCENT-LANG  answered that ADF&G had  talked to the                                                               
Alaska Department  of Law  (DOL) when  it was  originally putting                                                               
the legislation together; DOL said  that it would violate the law                                                               
to  have only  a  nonresident fee,  but it  was  agreed that  the                                                               
percentage breakdown  regarding residents and  nonresidents under                                                               
the existing  surcharge was  allowed.  He  stated the  changes to                                                               
the surcharge proposed under HB 247  would be steps down from the                                                               
current  surcharges, but  he said  that he  thinks they  would be                                                               
permissible; however,  he thinks it  would not be  permissible to                                                               
have a surcharge on only nonresident licenses.                                                                                  
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS  expressed  that there  is  a  big                                                               
difference  between  having a  nonresident  fee  and no  fee  for                                                               
residents and having  a set ratio between the two  that the state                                                               
is required to  work within.  He expressed that  he would like to                                                               
converse offline with Commissioner  Vincent-Lang at a later point                                                               
to discuss legal guidance on this topic.                                                                                        
                                                                                                                                
11:52:37 AM                                                                                                                   
                                                                                                                                
CHAIR  STUTES asked  whether ADF&G  could  explain the  Sectional                                                               
Analysis for HB 247 [hardcopy included in the committee packet].                                                                
                                                                                                                                
11:53:19 AM                                                                                                                   
                                                                                                                                
RACHEL HANKE,  Legislative Liaison,  Office of  the Commissioner,                                                               
Alaska Department of  Fish & Game, offered an  explanation on the                                                               
Sectional Analysis  for HB  247.  She  pointed out  that existing                                                               
legislation   created   the    enterprise   account,   which   as                                                               
Commissioner Vincent-Lang had  stated collected surcharge revenue                                                               
for  the  bond repayment.    She  explained  that this  would  be                                                               
amended under  Section 1 of  HB 247  to remove any  bond language                                                               
and create the  subaccount in the ADF&G fund, which  is the sport                                                               
fishing enhancement account.  It  would also allocate the revenue                                                               
to  sport  fishing facilities  to  be  used only  on  enhancement                                                               
programs and facility maintenance.   She pointed out that Section                                                               
2 would  amend AS 16.05.340(j)  to reference the  new enhancement                                                               
surcharge for  resident and  nonresident sport  fishing licenses.                                                               
Section  3 would  repeal a  reference to  AS 16.05.340(j),  which                                                               
would be  kept in  statute under the  proposed legislation.   She                                                               
said  that Section  4 would  repeal Section  34, ch.18,  SLA 2016                                                               
which  would  be   amended  to  allow  AS   16.05.130(e)  and  AS                                                               
16.05.340(j) to  remain in statute  beyond the sunset date.   She                                                               
pointed out that Section 5 is  like Section 3 and makes a similar                                                               
amendment to retain the reference  to AS 16.05.340(j).  Section 6                                                               
is the  transition language stating  that any funds  remaining in                                                               
the  enterprise account  after the  bonds are  satisfied will  be                                                               
transferred to  the new sport  fishing enhancement account.   She                                                               
said  that Section  7  and Section  9 would  give  Section 1  and                                                               
Section 2 an effective date of  January 1, 2021.  Section 8, like                                                               
Section  3 and  Section  5,  would fix  another  reference to  AS                                                               
16.05.340(j).     The  other  remaining  sections   establish  an                                                               
immediate effective date.                                                                                                       
                                                                                                                                
11:55:09 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  VANCE  asked,  if  the surcharges  were  kept  at                                                               
current  levels to  expand revenue,  whether  the proposed  sport                                                               
fish enhancement fund  fees could be used towards  paying for the                                                               
modernization of the application ADF&G has in development.                                                                      
                                                                                                                                
11:55:55 AM                                                                                                                   
                                                                                                                                
MS. HANKE  replied that  her answer  would be  no, but  she would                                                               
like  to have  Deputy Director  Tom  Taube confirm  this for  the                                                               
record.                                                                                                                         
                                                                                                                                
11:56:09 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE VANCE remarked that she  had spoken with ADF&G and                                                               
she  understands that  one of  the hopes  for the  application is                                                               
that it will  provide anglers with live access  to information on                                                               
what fish  can be  legally caught  at a  specific point  in time.                                                               
She clarified that  that is why she asked whether  the fees could                                                               
be used towards application development,  as it seems to her that                                                               
it  is  an  enhanced  service for  sport  fishing;  however,  she                                                               
expressed that she  understands the legal restrictions  on use of                                                               
the funds.   She summarized that she is hoping  to understand the                                                               
scope of what the options are for using the fund's fees.                                                                        
                                                                                                                                
11:57:09 AM                                                                                                                   
                                                                                                                                
TOM  TAUBE,  Deputy  Director, Division  of  Sport  Fish,  Alaska                                                               
Department  of Fish  & Game,  replied that  the way  the proposed                                                               
legislation is currently written  the enhancement fund is related                                                               
to hatchery production, and he did  not think that would apply to                                                               
application  development.     He  expressed  that   some  of  the                                                               
fisheries  the  application  could  provide access  to  would  be                                                               
hatchery  fish, but  he  would have  to ask  one  of the  ADF&G's                                                               
lawyers  whether the  language used  in the  proposed legislation                                                               
would allow  for fees  to cover  application cost  development or                                                               
anything outside of hatchery related expenditures.                                                                              
                                                                                                                                
11:57:59 AM                                                                                                                   
                                                                                                                                
CHAIR  STUTES,  after ascertaining  that  there  were no  further                                                               
questions, announced that  HB 247 would be held  over for further                                                               
review.                                                                                                                         
                                                                                                                                
11:58:28 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Fisheries meeting was adjourned at 11:58                                                                   
a.m.                                                                                                                            
| Document Name | Date/Time | Subjects | 
|---|---|---|
| HB 247 Support Doc - Surcharge Revenue Breakdown 2.12.20.pdf | HFSH       2/20/2020 11:00:00 AM HFSH 3/17/2020 10:00:00 AM | HB 247 | 
| HB 247 Transmittal Letter ver. A 2.12.20.pdf | HFSH       2/20/2020 11:00:00 AM | HB 247 | 
| HB 247 v. 2.12.20.PDF | HFSH       2/20/2020 11:00:00 AM HFSH 3/17/2020 10:00:00 AM | HB 247 | 
| Marilyn Charles Board Application_Redacted.pdf | HFSH       2/20/2020 11:00:00 AM | |
| HB 247 Fiscal Note ADF&G 2.12.20.pdf | HFSH       2/20/2020 11:00:00 AM HFSH 3/17/2020 10:00:00 AM | HB 247 | 
| HB 247 Hearing Request Memo 2.12.20.pdf | HFSH       2/20/2020 11:00:00 AM HFSH 3/17/2020 10:00:00 AM | HB 247 | 
| HB 247 Sectional Analysis - v. A 2.12.20.pdf | HFSH       2/20/2020 11:00:00 AM HFSH 3/17/2020 10:00:00 AM | HB 247 | 
| HB 218 Transmittal Letter 1.28.20.pdf | HFSH       2/13/2020 11:00:00 AM HFSH 2/20/2020 11:00:00 AM HRES 3/18/2020 1:00:00 PM | HB 218 | 
| HB 218 Sectional Analysis 1.28.20.pdf | HFSH       2/13/2020 11:00:00 AM HFSH 2/20/2020 11:00:00 AM | |
| HB 218 ADFG Letter of Support 1.28.20.pdf | HFSH       2/13/2020 11:00:00 AM HFSH 2/20/2020 11:00:00 AM HRES 3/13/2020 1:00:00 PM HRES 3/18/2020 1:00:00 PM | HB 218 | 
| HB 218 Logbook Use Summary 1.28.20.pdf | HFSH       2/13/2020 11:00:00 AM HFSH 2/20/2020 11:00:00 AM HRES 3/18/2020 1:00:00 PM | HB 218 | 
| HB 218 V. A 1.27.20.PDF | HFSH       2/13/2020 11:00:00 AM HFSH 2/20/2020 11:00:00 AM HRES 3/13/2020 1:00:00 PM HRES 3/18/2020 1:00:00 PM | HB 218 | 
| HB 218 ADFG Letter of Support 1.28.20.pdf | HFSH       2/6/2020 11:00:00 AM HFSH 2/13/2020 11:00:00 AM HFSH 2/20/2020 11:00:00 AM | |
| HB 218 Fiscal Note 1.27.20.pdf | HFSH       2/6/2020 11:00:00 AM HFSH 2/13/2020 11:00:00 AM HFSH 2/20/2020 11:00:00 AM HRES 3/13/2020 1:00:00 PM HRES 3/18/2020 1:00:00 PM | HB 218 | 
| HB 218 Letter of Support SEAGO 2.12.20.pdf | HFSH       2/13/2020 11:00:00 AM HFSH 2/20/2020 11:00:00 AM HRES 3/13/2020 1:00:00 PM HRES 3/18/2020 1:00:00 PM | HB 218 | 
| HB 218 Amendment #1 Rep. Kreiss-Tomkins.pdf | HFSH       2/20/2020 11:00:00 AM | HB 218 | 
| HB 218 Amendment #2 Rep. Kreiss-Tomkins.pdf | HFSH       2/20/2020 11:00:00 AM | HB 218 |