Legislature(1997 - 1998)

02/24/1998 01:08 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         HOUSE RESOURCES STANDING COMMITTEE                                    
                 February 24, 1998                                             
                     1:08 p.m.                                                 
                                                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Representative Bill Hudson, Co-Chairman                                        
Representative Scott Ogan, Co-Chairman                                         
Representative Beverly Masek, Vice Chair                                       
Representative Ramona Barnes                                                   
Representative Fred Dyson                                                      
Representative Joe Green                                                       
Representative William K. (Bill) Williams                                      
Representative Irene Nicholia                                                  
Representative Reggie Joule                                                    
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
All members present                                                            
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
PRESENTATION BY GREGORY FRANK COOK:  PUBLIC TRUST DOCTRINE                     
HOUSE BILL NO. 406                                                             
"An Act relating to subsistence uses of fish and game."                        
                                                                               
     - SCHEDULED BUT NOT HEARD                                                 
(* First public hearing)                                                       
                                                                               
PREVIOUS ACTION                                                                
                                                                               
No previous action to record                                                   
                                                                               
WITNESS REGISTER                                                               
                                                                               
GREGORY FRANK COOK, Attorney At Law                                            
P.O. Box 240618                                                                
Douglas, Alaska 99824                                                          
Telephone:  (907) 586-9719                                                     
POSITION STATEMENT: Gave a presentation on the public trust                    
                    doctrine and answered questions of the                     
                    committee members.                                         
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 98-16, SIDE A                                                             
Number 0001                                                                    
                                                                               
CO-CHAIRMAN SCOTT OGAN called the House Resources Standing                     
Committee meeting to order at 1:08 p.m.  Members present at the                
call to order were Representatives Hudson, Ogan, Masek, Barnes, and            
Dyson.  Representatives Williams, Joule, Nicholia, and Green                   
arrived at 1:13 p.m., 1:14 p.m., 1:15 p.m. and 2:09, respectively.             
                                                                               
PRESENTATION BY GREGORY FRANK COOK:  PUBLIC TRUST DOCTRINE                     
                                                                               
CO-CHAIRMAN OGAN announced the first order of business was a                   
presentation by Gregory Frank Cook on the public trust doctrine.               
                                                                               
Number 0109                                                                    
                                                                               
GREGORY FRANK COOK, Attorney At Law, explained the public trust                
doctrine is not simple or pure.  It is a common law doctrine - a               
product of what judges say as they decide individual cases.  It is             
not a creature of statute and it is constantly evolving.  In                   
addition, each state formulates what the public trust doctrine                 
means within its own border. Alaska's version draws on many                    
different sources including the state of Arkansas.                             
                                                                               
CO-CHAIRMAN OGAN announced the presence of Representatives Joule               
and Williams.                                                                  
                                                                               
MR. COOK further stated another important part of Alaska's public              
trust doctrine is Article VIII, Section 3, "common use," of the                
state constitution.  He cited about 15 years ago the Sage Brush                
Initiative was passed and codified in statute - AS 38.05.502.  The             
public trust was integrated into it.  But, to his knowledge, it has            
never been the subject of any decision by the Alaska Supreme Court             
or even cited.  Nonetheless, it is a very powerful statute because             
it makes it clear that the public trust doctrine in Alaska does not            
end at tidelands, but extends upland and to unappropriated                     
minerals.  Thus, there are lands, waters, tidelands, uplands,                  
unappropriated minerals, and many natural resources that are part              
of the public trust doctrine.                                                  
                                                                               
Number 0586                                                                    
                                                                               
MR. COOK further stated the purpose of the public trust doctrine               
is, generally speaking, to limit the legislative and executive                 
branches in the sales or other dispositions of certain types of                
property.  It also requires the management of certain types of                 
property which comprises the corpus of the trust, according to a               
certain standard.  The types of properties covered by the public               
trust doctrine are "jus privatum" and "jus publicum."  "Jus                    
privatum" is law applying to private types of property such as                 
chairs, desks, cars, and computers.  "Jus publicum" is law applying            
to the public trust such as waters, land beneath navigable waters,             
fishery resources, and wildlife.                                               
                                                                               
Number 0732                                                                    
                                                                               
REPRESENTATIVE RAMONA BARNES stated Alaska is unique because it is             
the only state that holds subsurface rights to its minerals for the            
people.  She asked Mr. Cook to comment on the right.                           
                                                                               
Number 0783                                                                    
                                                                               
MR. COOK replied the right is addressed in AS 38.05.502, which                 
specifies that all unappropriated minerals in the state are held in            
trust for the benefit of the people.  Later, he will discuss the               
obligations of the legislative and executive branches, the                     
restrictions on disposing of the assets, and the requirement to                
obtain top dollar for them.                                                    
                                                                               
Number 0835                                                                    
                                                                               
CO-CHAIRMAN OGAN stated a good example of the public trust is the              
oil in the state.  Citizens own the oil collectively and receive a             
dividend off of its earnings representing their shares.  He asked              
Mr. Cook whether it is a fair analysis.                                        
                                                                               
Number 0860                                                                    
                                                                               
MR. COOK replied, "Yes."  The public trust doctrine does not                   
prohibit leases of minerals or oil.  According to the Alaska                   
Supreme Court, leases are of finite duration, they do not convey a             
fee-simple interest, they are subject to competitive bidding, and              
they do not constitute an irrevocable alienation of assets                     
forbidden by a trust.                                                          
                                                                               
Number 0892                                                                    
                                                                               
CO-CHAIRMAN OGAN stated, in terms of the distribution, the United              
States Supreme Court has ruled that the state can not discriminated            
based on length of residency and equal protection.                             
                                                                               
MR. COOK replied by nodding his head affirmatively.                            
                                                                               
Number 0937                                                                    
                                                                               
                                                                               
MR. COOK further said, in reference to the public trust doctrine,              
the state does not act as a proprietor; it acts as a trustee.  It              
acts on behalf of somebody else.  In addition, the public trust                
doctrine guarantees equality of access to fish, wildlife, and                  
water.  Thus, the public trust doctrine and the equal access                   
clauses together - Article VIII, Sections 3, 15, and 17 - prohibit             
special privileges or exclusive rights.  One of the privileges that            
has been addressed by the Alaska Supreme Court is the rural-urban              
distinction - McDowell.  The principle of equal access is often                
blended with equal protection and public trust considerations.                 
                                                                               
Number 1058                                                                    
                                                                               
CO-CHAIRMAN OGAN announced that Representative Nicholia joined the             
meeting some time ago.                                                         
                                                                               
Number 1065                                                                    
                                                                               
REPRESENTATIVE FRED DYSON asked Mr. Cook to define the word                    
"indefeasible."                                                                
                                                                               
MR. COOK replied it means one that can not be taken away.                      
                                                                               
Number 1084                                                                    
                                                                               
MR. COOK further explained, in reference to the public trust                   
doctrine, that the government acts as the fiduciary while the                  
public is the beneficiary.  The fiduciary is someone who stands in             
a special relationship to a beneficiary.  A fiduciary must be                  
scrupulously fair, deal with the beneficiary at all times in the               
upmost of good faith, and act with the full knowledge and consent              
of the beneficiary.  The fiduciary in this case, the state, holds              
legal title to the assets covered by the trust.  The beneficiary is            
someone who holds the equitable interest in the body of the trust.             
The beneficiary in this case is all the people of the state and the            
consideration of future generations.  The corpus is the body of                
assets held by the trustee that are managed according to fiduciary             
duties.                                                                        
                                                                               
Number 1234                                                                    
                                                                               
MR. COOK further explained the fiduciary duties of a trustee - the             
legislature - are loyalty (no self-profit or deals) and to not                 
delegate common law.  The legislature, however, delegates to the               
executive branch.  There is a duty to furnish information to the               
beneficiary such as the value and status of a resource.  It is a               
duty that other legislatures have not paid sufficient attention to,            
especially in terms of planning what the future holds.  The                    
legislature has defined the sustained yield principle, but only in             
terms of timber.  He is not aware of any legislative definitions or            
administrative regulations that comes close to defining sustained              
yield in terms of fisheries or wildlife.                                       
                                                                               
Number 1347                                                                    
                                                                               
REPRESENTATIVE BARNES asked Mr. Cook whether the issue of fiduciary            
responsibility in the context of public trust would be analogous to            
the Permanent Fund Dividend Program's corpus and the legislature               
determining how the interest is used.                                          
                                                                               
MR. COOK replied it is directly applicable.  The legislature is                
charged with the management of the resource, while at the same                 
time, there are broad parameters to guide actions for its equitable            
and wise management.                                                           
                                                                               
Number 1408                                                                    
                                                                               
REPRESENTATIVE IRENE NICHOLIA referred to the issue of fiduciary               
responsibility in terms of planning for the future, and asked Mr.              
Cook whether the public trust doctrine will not resolve the                    
federal-state impasse according to Ostrosky.                                   
                                                                               
Number 1432                                                                    
                                                                               
MR. COOK replied he has not read Ostrosky in a few years.                      
                                                                               
Number 1460                                                                    
                                                                               
REPRESENTATIVE NICHOLIA stated it says that the public trust                   
doctrine will not resolve the federal-state impasse.                           
                                                                               
Number 1478                                                                    
                                                                               
MR. COOK further explained another duty of the legislature as a                
fiduciary is to deal impartially with all of the beneficiaries of              
the trust.  It dovetails closely with several of the provisions in             
the state constitution requiring equal protection of the laws.  As             
the trustee, the legislature is not allowed to favor one subset of             
the beneficiaries. Classifications can be made, but they must be               
done for proper purposes and pass muster under equal protection                
analysis.  The trend has been to forbid preference for one subset              
of state residents based on where they reside - the rural                      
preference.                                                                    
                                                                               
Number 1588                                                                    
                                                                               
CO-CHAIRMAN BILL HUDSON asked Mr. Cook how limited entry fits into             
the public trust doctrine.  It grants Alaskans and non-Alaskans an             
exclusive right to fish in exclusive areas.                                    
                                                                               
Number 1628                                                                    
                                                                               
MR. COOK replied the Alaska Supreme Court says there is tension                
between the limited entry system and the equal access clauses -                
Article VIII, Sections 3, 15 and 17.  It fits in, however, because             
of the language in Section 15 and because of the constitutional                
amendment.  The court has sought to harmonize Section 15 with                  
Sections 3 and 17 because of the tension.  In addition, there have             
been statements made by the state supreme court expressing concern             
as the price of a limited entry permit escalates that it perhaps               
does not fit improperly.                                                       
                                                                               
Number 1706                                                                    
                                                                               
MR. COOK further stated the public trust doctrine does not prevent             
an amendment to the constitution.  The Constitution of the State of            
Alaska guarantees, in his opinion, to the people the right and the             
specific procedures to be amended.  It is not an unqualified right,            
however.  The constitution could not be amended to remove the right            
of liberty, for example, because it is a fundamental part of a                 
republican government.  There is an argument that the public trust             
doctrine only describes inherent and vested property rights that               
can not be divested.  He does not think that the public trust                  
doctrine would prevent an amendment to the constitution that would             
limit the common use clause either.                                            
                                                                               
Number 1789                                                                    
                                                                               
CO-CHAIRMAN OGAN stated the United States Supreme Court said in                
Illinois Central Railroad Company (1892), "the state could no more             
advocate its trust over property in which the whole people are                 
interested in, and that it can advocate its police powers and                  
administration of government for the preservation of the peace."               
                                                                               
Number 1815                                                                    
                                                                               
MR. COOK stated there is more to the case than what was read.                  
There are exceptions and circumstances in which a state can convey             
some portion of a public trust asset.  In CWC Fisheries v. Bunker              
(1988), the Alaska Supreme Court discussed the two-part test for               
alienating items that are part of the public trust in terms of                 
revocation.  The court said the legislature could transfer a                   
portion of tidelands to a private owner if he was building a wharf             
for public use, for example.  Therefore, the state has the ability             
to favor one public trust use over another, but it can not favor               
private interests over the public's interest.                                  
                                                                               
Number 1923                                                                    
                                                                               
REPRESENTATIVE BILL WILLIAMS asked Mr. Cook how the public trust               
doctrine affects what was negotiated in 1971 under the Alaska                  
Native Claims Settlement Act.  Language in the conference committee            
report expected both the Secretary of Interior and the state to                
take any action necessary to protect the subsistence needs of                  
Alaskan Natives.  He wondered whether the public trust doctrine                
would protect the state's right that was negotiated away.                      
                                                                               
Number 1962                                                                    
                                                                               
MR. COOK replied it is a very good question.  He did not want to               
give a casual answer to such a complicated question.  Nonetheless,             
it would be beyond the power of a congressional meeting to make a              
statement that would change the Constitution of the State of                   
Alaska.                                                                        
                                                                               
Number 1998                                                                    
                                                                               
REPRESENTATIVE WILLIAMS replied, given that it was a statement and             
its inadequate implementation resulted in the Alaska National                  
Interest Lands Conservation Act (ANILCA), he asked Mr. Cook how it             
affects the public trust doctrine.                                             
                                                                               
Number 2035                                                                    
                                                                               
MR. COOK replied the public trust doctrine at the state level does             
not alter the supremacy clause of the Constitution of the United               
States.  If Congress acts according to the authority granted to it             
by the Constitution, then those laws would be the supreme laws of              
the land.                                                                      
                                                                               
Number 2060                                                                    
                                                                               
REPRESENTATIVE WILLIAMS asked Mr. Cook whether he is saying that               
Title VIII of ANILCA is the supreme law of land.                               
                                                                               
MR. COOK replied he will stick with the words he used.                         
                                                                               
REPRESENTATIVE WILLIAMS asked Mr. Cook to make it clearer then.                
                                                                               
MR. COOK stated, if Congress acts pursuant to authority granted to             
it by the Constitution of the United States, then such law is the              
supreme law of the land.                                                       
                                                                               
Number 2081                                                                    
                                                                               
REPRESENTATIVE WILLIAMS stated Title VIII of ANILCA is the supreme             
law of the land then.                                                          
                                                                               
Number 2086                                                                    
                                                                               
MR. COOK stated whether or not Title VIII of ANILCA was properly               
adopted is under litigation now which is the reason he can not                 
answer Representative Williams with certainty.                                 
                                                                               
Number 2117                                                                    
                                                                               
REPRESENTATIVE REGGIE JOULE asked Mr. Cook whether the legislature             
should attempt to trust the public for advise on how to administer             
the public trust doctrine.  He wondered whether a constitutional               
amendment is seeking advise on how to administer the public trust              
doctrine.                                                                      
                                                                               
Number 2173                                                                    
                                                                               
MR. COOK replied it is the job of the legislature to determine                 
whether or not it should go to the ballot.  But, yes the                       
legislature can trust the public, and yes it should seek the advise            
of the public on how to administer the resources as part of the                
public trust doctrine.  The legislature at the same time should                
recognize that the public does not have all the answers.  But, this            
is a representative government and legislators act on behalf of                
their public.  The concurring opinion of the Fairness in Salmon                
Harvest (F.I.S.H.) initiative was that an initiative is not the                
appropriate way to manage fish and wildlife resources.  It turns               
the role of a beneficiary into a trustee.                                      
                                                                               
Number 2271                                                                    
                                                                               
CO-CHAIRMAN OGAN read the following from the book, Putting the                 
Public Trust Doctrine to Work - Second Edition:                                
                                                                               
     "When a state attempts to protect its public trust                        
     resources, it is less likely to loose on claims of                        
     federal preemption because the state is acting in an area                 
     of its traditional power."                                                
                                                                               
CO-CHAIRMAN OGAN stated the United States Supreme Court has ruled              
that traditional state powers include the right to manage                      
indigenous fish and game within its borders.                                   
                                                                               
CO-CHAIRMAN OGAN further read the following:                                   
                                                                               
     "The 'supreme' court maintains its presumption against                    
     federal preemption when Congress legislates an area of                    
     traditional state power."                                                 
                                                                               
CO-CHAIRMAN OGAN referred to case in Wyoming and asked Mr. Cook to             
comment on the obligation of the trustees to manage as a                       
traditional state power versus the federal supremacy clause.                   
                                                                               
Number 2331                                                                    
                                                                               
MR. COOK replied the question is very similar to Representative                
Williams' question in that it is extremely complex.  There is a                
presumption against preemption and a test to determine whether or              
not preemption should be applied.  And, yes the management of fish             
and wildlife is traditionally within the purview of a state's                  
authority.  However, the Eighth Circuit Court of Appeals in Brown              
(Minnesota) found that the federal government was held to have the             
authority to regulate hunting on state lands and over state waters             
because it would affect nearby federally owned lands.                          
                                                                               
Number 2418                                                                    
                                                                               
CO-CHAIRMAN OGAN noted, for the record, the case in Wyoming dealt              
with migratory water fowl, a non-indigenous species to the state in            
which traditionally the federal government has had more authority              
in managing.                                                                   
                                                                               
Number 2426                                                                    
                                                                               
REPRESENTATIVE NICHOLIA asked Mr. Cook whether the legislature is              
really asking the people....                                                   
                                                                               
TAPE 98-16, SIDE B                                                             
Number 0000                                                                    
                                                                               
REPRESENTATIVE NICHOLIA continued.  She referred to the issue of               
federal law as supreme over public land and the December 1, 1998               
deadline to comply with federal law, and asked Mr. Cook whether                
the legislature is asking the people in the state to manage these              
lands, rather than what type of management they want - a dual                  
system of federal government on federal lands and state government             
on state lands - or come into compliance with federal law and place            
federal management on all laws.                                                
                                                                               
Number 0043                                                                    
                                                                               
MR. COOK replied it is a political question, not a legal question.             
Therefore, she is better placed to answer it.                                  
                                                                               
Number 0054                                                                    
                                                                               
REPRESENTATIVE NICHOLIA replied it is not only a political                     
question.  There are legal aspects because of Title VIII provisions            
in ANILCA.  "You stated that the federal law has supremacy over                
public lands in the state of Alaska and so that supremacy law has              
a supremacy over state laws."                                                  
                                                                               
Number 0069                                                                    
                                                                               
MR. COOK replied there is nothing in ANILCA that requires Alaska to            
amend the constitution.                                                        
                                                                               
Number 0074                                                                    
                                                                               
REPRESENTATIVE NICHOLIA replied yes there is.  Title VIII of ANILCA            
places a rural priority.                                                       
                                                                               
MR. COOK replied it simply says "if" the state wants to manage                 
within certain parameters then it must provide for a rural                     
priority.  And, if the state does not accept the federal                       
government's parameters then the federal government will manage                
those lands.  There is nothing in ANILCA that says the state "must"            
adopt a constitutional amendment.                                              
                                                                               
Number 0099                                                                    
                                                                               
REPRESENTATIVE NICHOLIA asked Mr. Cook, if the state does not adopt            
an amendment to the constitution for a rural priority, will the                
state be out of compliance with federal law.                                   
                                                                               
Number 0111                                                                    
                                                                               
MR. COOK replied, "Right."                                                     
                                                                               
Number 0116                                                                    
                                                                               
REPRESENTATIVE JOULE wondered whether the legislature could place              
a subsistence constitutional amendment on the ballot, without                  
violating the public trust doctrine, just as the legislature passed            
a resolution to place an amendment on the ballot for limited entry.            
                                                                               
Number 0164                                                                    
                                                                               
MR. COOK replied he does not see any prohibition on amending the               
constitution.   In his opinion, the common use clause is subject to            
amendment, but not the equal protection clauses.  Equal protection             
is included in the Fourteenth and Fifth Amendments of the                      
Constitution of the United States.  It is a different matter than              
the public trust doctrine even though they interface and dovetail.             
They are legally and conceptually distinct.  In his opinion, equal             
protection could not be taken out of the constitution.                         
                                                                               
Number 0210                                                                    
                                                                               
CO-CHAIRMAN OGAN stated there is legislation, House Bill 406, that             
would give a use-preference based on the sustained yield principle             
in Article VIII, "subject to preferences among beneficial uses."               
He asked Mr. Cook to explain the difference of a preference based              
on "uses" versus "users" - users being the rural priority and uses             
being the use of fish and game - in terms of equal protection.                 
                                                                               
Number 0248                                                                    
                                                                               
MR. COOK replied the written material provided would be a better               
source to answer the question.  Nonetheless, Article VIII, Section             
4, requires the state to manage fish, wildlife, waters, and other              
replenishable resources according to the sustained yield principle             
subject to preferences among beneficial uses.  The Alaska Supreme              
Court made it clear in McDowell that "uses" rather than "users"                
were intended to be addressed by the provision.  Decisions since               
1992 have addressed the issue referring to McDowell.  In addition,             
the Alaska Supreme Court has said over and over again, as-long-as              
access or category of use to the resource is not denied, the equal             
access clauses of the constitution are not implicated and there is             
no violation.  For example, the Alaska Supreme Court has said in a             
variety of cases that beneficial uses can be defined in terms of               
the use made of the resource such as commercial, subsistence, and              
sport fishing.  The term "beneficial uses" actually comes from the             
world of water law where it is described in terms of agricultural,             
domestic, household, and municipal use of water, for example.  They            
are uses that require a diversion of water from its natural place              
and an appropriation by a user in order to perfect a right to the              
water.  "Users" on the other hand, are a class of Alaskans such as             
the urban-rural dichotomy.  The Alaska Supreme Court has expressly             
said it is all right for the boards to make allocation decisions;              
discriminate for a valid purpose - resource conservation; and,                 
treat different subgroups differently - State v. Gilbert.  In                  
Gilbert, the Board of Fisheries was allowed to treat Chignik                   
seiners differently than Stepovak setnetters.  The state supreme               
court had to recognize that the board must make allocation                     
decisions inherent to conservation and management of the resources.            
But, the way the resource is allocated is fundamental, the                     
distinction between uses and users.  "As-long-as you're not setting            
up a closed category of users and you've got a resource                        
conservation purpose, then the discrimination, with other things               
being equal, should pass muster."                                              
                                                                               
Number 0481                                                                    
                                                                               
CO-CHAIRMAN OGAN asked Mr. Cook whether the legislature is well                
within its constitutional authority to set up a preferential use               
for sustenance in a time of shortage to further the sustained yield            
principle.                                                                     
                                                                               
Number 0504                                                                    
                                                                               
MR. COOK replied it is be beyond most people's debate that                     
subsistence uses is a beneficial use of the resources, therefore,              
the legislature is entitled to adopt statutes that prefer                      
subsistence use.  At the same time, the equal access clauses make              
it clear that the legislature can not create a closed class of                 
people.  He referred to the document that he provided to the                   
committee members today.  It describes the historical reasoning of             
other states' decisions in terms of Balkanization as a violation of            
equal protections.                                                             
                                                                               
Number 0568                                                                    
                                                                               
REPRESENTATIVE WILLIAMS asked Mr. Cook how the public trust                    
doctrine affected the Katie John case.                                         
                                                                               
Number 0579                                                                    
                                                                               
MR. COOK replied he has not reviewed the Katie John case.  He                  
preferred not to give a snap response.                                         
                                                                               
Number 0598                                                                    
                                                                               
CO-CHAIRMAN HUDSON referred to "uses" versus "users" and asked Mr.             
Cook, if the legislature established beneficial uses, which can                
only be affected by users, wouldn't the users also have to also fit            
the concept of beneficial trust.                                               
                                                                               
Number 0631                                                                    
                                                                               
MR. COOK replied the term "exclusive use" is expressly prohibited              
by Article VIII, Section 15 - a derivative of the White Act from               
the 1920s.  It has also been interpreted by the Supreme Court in               
Hines v. Grimes Packing Company.  It is the kind of prohibition                
that the Alaska Supreme Court relied on to invalidate the                      
intrastate residential preference in McDowell.  Therefore, as the              
state constitution now stands, the prohibition on exclusive uses               
and special privileges (the common use clause) and the special                 
guarantee of equal protection in Article VIII, combine to prohibit             
that kind of discrimination.                                                   
                                                                               
Number 0707                                                                    
                                                                               
REPRESENTATIVE JOULE asked Mr. Cook whether a rural preference is              
really a closed class because there is no prohibition against                  
somebody moving to a rural area or somebody moving out of a rural              
area.                                                                          
                                                                               
Number 0739                                                                    
                                                                               
MR. COOK replied the precise issue was addressed by Justice                    
Rabinowitz in his dissenting opinion in McDowell.                              
                                                                               
Number 0764                                                                    
                                                                               
REPRESENTATIVE JOULE asked Mr. Cook, in regards to the public trust            
doctrine, how does it work with Article XII, Section 12.                       
                                                                               
Number 0788                                                                    
                                                                               
MR. COOK replied, "I don't know."                                              
                                                                               
Number 0800                                                                    
                                                                               
REPRESENTATIVE BARNES referred to the issue of limited entry and               
stated the people decided to give away a portion of their resources            
to a particular group of people when they voted on it.  The                    
arguments presented at the time were concerns about out-of-state               
fishermen, a depressed resource, Alaskans holding the limited entry            
permits, and the benefits remaining within Alaska.  "We all know               
that a large number of those permits today are held by people                  
outside of Alaska and were sold to them early on by many of them               
from the rural areas of the state because they didn't understand,              
I think, the value of those fishery permits as it related to the               
future of the economy of the areas."  She wondered, if the question            
was placed before a court today of general jurisdiction in terms of            
the promise made to the people, and the fact that an exclusive                 
number of people hold permits (mostly outsiders), their high value,            
and the issue of migratory fish controlled by the National Oceanic             
and Atmospheric Administration, how it would hold together under               
the public trust doctrine.  The scenario that led the people to                
vote one way no longer exists.                                                 
                                                                               
Number 0932                                                                    
                                                                               
MR. COOK replied the question has a lot of out-of-state commercial             
fishers nervous.  Clearly, the question could be decided                       
differently under the facts present today.  There is no advantage              
to speculate how it would come out, but it is a concern that has               
been raised by the Alaska Supreme Court.  In addition, consistent              
with the public trust doctrine, a state may prefer its residents as            
a whole over nonresidents.  It would not be a violation of the                 
public trust doctrine to say that only Alaskan residents can hunt              
for moose when it is for a legitimate conservation purpose.  The               
issue is addressed in the materials that he provided to the                    
committee members today.                                                       
                                                                               
Number 1041                                                                    
                                                                               
REPRESENTATIVE BARNES stated it is troubling because the state,                
through the legislative branch, holds the fish and wildlife in the             
public's trust, and spends a great deal of money to manage a                   
portion of the fisheries resource for a large number of out-of-                
state fishermen.                                                               
                                                                               
Number 1066                                                                    
                                                                               
MR. COOK stated it is one of the reasons that justifies charging               
out-of-state fishermen higher fees.                                            
                                                                               
Number 1090                                                                    
                                                                               
REPRESENTATIVE BARNES replied the state can charge a higher fee on             
certain game permits, for example, because there is a clear nexus              
between the cost of management and the cost of the outsiders to                
hunt.                                                                          
                                                                               
Number 1126                                                                    
CO-CHAIRMAN OGAN asked Mr. Cook to continue his presentation.                  
                                                                               
Number 1147                                                                    
                                                                               
MR. COOK stated the public trust doctrine applies to tidelands,                
either washed by the tide or filled in and no longer washed by the             
tide; navigable lakes and streams; uplands, a result of the Sage               
Brush Initiative; and beds of navigable lakes and streams, a result            
of a 1995 special and temporary act passed by the legislature.                 
                                                                               
MR. COOK further stated the public trust doctrine protects the                 
right of equal access to the sea for the purposes of commerce,                 
navigation,  and fishing.  It protects fish and wildlife and the               
equal access to them, including the conservation of fish and                   
wildlife habitat which is often more important than harvest                    
restriction such as bag limits, open, and closed seasons.  Habitat             
is every bit as important to protect because without it, the                   
population is gone.  The public trust doctrine is also seen to                 
protect recreational uses such as swimming, fishing, hunting,                  
viewing, and science.  There has not been an explicit ruling from              
the state supreme court yet on recreational uses, but the temporary            
act passed in 1985 by the legislature extended the public trust                
doctrine to those types of uses.  In addition, the state should                
also look at the quality and quantity of the resources left for the            
future generations.                                                            
                                                                               
Number 1260                                                                    
                                                                               
MR. COOK stated, in conclusion, the public trust doctrine is                   
potentially a powerful tool, but it is not a panacea.  It is not a             
universal cure.  It is not a guarantee against federal management              
of any kind.  The state has lived with varying degrees of federal              
management of resources without any undue effect for a long time.              
He cited migratory water fowl as an example; and the International             
Pacific Halibut Commission as an effective body for fisheries                  
management.  It is a mixed bag because nobody wants to go back to              
the bad-old-days of federal management of Seattle interests and                
fish traps.  The public trust doctrine does not answer the                     
confrontation between sovereigns.  The public trust doctrine,                  
however, is a constitutional guarantee that the state government               
will not violate its fiduciary duties, including the duty of                   
impartiality.  The public trust doctrine is of very little use                 
unless the legislature recognizes and understands it and the                   
judicial branch is willing to enforce it.  The public trust                    
doctrine, as it blends with the equal protection clauses in the                
state constitution, requires that the resources are open to the                
public on equal terms without a preference.  Thus, any contrary                
state or municipal action is impermissible, except for conservation            
restrictions and preferences among beneficial uses.  The public                
trust doctrine does not prevent the Board of Game or the Board of              
Fisheries from conserving or allocating scarce resources, but it               
does prevent allocating them through devises that limit user                   
groups.  The state constitution can be amended.  The common use                
clause can be amended - a concurring opinion by Justice Compton                
(ph).  "I believe that the public trust doctrine probably, may be,             
diminished.  It may be modified.  It may even be emasculated                   
through the constitutional amendment process, but it certainly does            
not have to be done."  The public trust doctrine may not be                    
entirely eliminated any more than equal protection could be fully              
denied.  The public trust doctrine is simply the name given to the             
rationale that is relied on that limits the power of the people who            
temporarily occupy the seats of government when they seek to                   
transfer the assets that belong to the public as a whole to private            
hands.                                                                         
                                                                               
Number 1524                                                                    
                                                                               
MR. COOK further stated, "My own preference is that the state,                 
through you, would pay more attention to the duty to give                      
information to the public.  I don't think we know enough about our             
fish and wildlife resources, and our water resources.  In                      
particular, I don't think we know enough about what those                      
populations are, what kind of harvest they can sustain, and what               
kind of yield you want them to sustain or the public might want                
them to sustain.  I would like to see the legislature consider,                
perhaps not decide, what it means in our constitution to say                   
sustained yield outside of the context of timber which is the only             
place you've looked at it.  I would like the legislature to pay                
particular attention to the issue of our waters.  Our state waters             
often receive short shrift, in particular, the reservation of in-              
stream flow for the benefit of fish and wildlife, and for the                  
benefit of public recreation, and commercial use, and subsistence              
use has to some extent run into a brick wall.  Applications by the             
state to speak to that reservation of water issue are simply not               
processed by the Department of Natural Resources and that is in                
many ways a failure of the state to properly take care of this                 
public trust resource."                                                        
                                                                               
MR. COOK thanked the committee members for looking at the state                
constitution and the public trust doctrine.  He called their                   
attention to an article written in December of 1994 in the Alaska              
Law Review.                                                                    
                                                                               
Number 1665                                                                    
                                                                               
REPRESENTATIVE BARNES commented the issue of reserved water rights             
is going to become a tremendous issue in the state.  She asked Mr.             
Cook whether he is aware of any federal law on the books that                  
specifically reserve water rights to the federal government in                 
Alaska.                                                                        
                                                                               
Number 1702                                                                    
                                                                               
MR. COOK replied he is aware of "supreme" court decisions that                 
constitute federal common law.  However, statutory laws that govern            
reserved federal water rights is an area beyond his area of                    
expertise, but he is familiar with federal case law.                           
                                                                               
Number 1727                                                                    
                                                                               
REPRESENTATIVE BARNES stated there is a whole process under federal            
law to reserve a water right in Alaska.  "I don't believe that                 
there has ever been a time when the federal government has ever                
gone through that regulatory process to reserve any water rights in            
this state."  Therefore, the Ninth Circuit Court of Appeals or any             
other court that reaches a conclusion on reserved water rights                 
needs to be challenged in the Supreme Court of the United States.              
                                                                               
Number 1775                                                                    
                                                                               
REPRESENTATIVE BARNES further stated the legislature holds the                 
common property resources in trust and delegates a portion of its              
responsibilities to different agencies through statutes.  She asked            
Mr. Cook his opinion on an agency undermining the law or making a              
statement that a law is a floor and not a ceiling.                             
                                                                               
Number 1835                                                                    
                                                                               
MR. COOK replied the Ninth Circuit Court of Appeals is not alone in            
its decisions on federal reserved water rights.  The United States             
v. Cappaert case is the original decision on the issue from the                
United States Supreme Court.  There is also another court case                 
dealing with puff fish in the Death Valley Natural Monument in                 
regards to federal reservations.                                               
                                                                               
Number 1908                                                                    
                                                                               
REPRESENTATIVE BARNES asked Mr. Cook whether he would agree that               
there is only one federally recognized reservation in the state -              
Metlakatla.                                                                    
                                                                               
Number 1921                                                                    
                                                                               
MR. COOK replied yes at this point in time, pending a decision from            
the United States Supreme Court on Venetie.                                    
                                                                               
Number 1945                                                                    
                                                                               
REPRESENTATIVE BARNES stated there can be federally reserved water             
rights without going through a litany process.                                 
                                                                               
MR. COOK stated the term "reservation" in the law is broader than              
the meaning of an Indian reservation.  It speaks broadly to areas              
of land that the federal government owns and manages for specific              
purposes.  For example, the Tongass National Forest was the first              
forest reservation in the country.                                             
                                                                               
Number 2064                                                                    
                                                                               
REPRESENTATIVE BARNES asked Mr. Cook whether the federal government            
would have to go through a specific provision to reserve the water             
within the reservation.                                                        
                                                                               
Number 2078                                                                    
                                                                               
MR. COOK replied he does not know, but he does not think so.  There            
is still the doctrine of implied federal reserved water rights.                
                                                                               
MR. COOK further replied, in regards to the standard delegation                
analysis, the state supreme court would look to whether or not the             
agency was acting in a way that was reasonably necessary for the               
purposes of the effectuation of the statute.  If an agency exceeded            
its authority, a claim under the Administrative Procedure Act would            
be upheld.  An agency's interpretation of the statute would also               
get some weight.                                                               
                                                                               
Number 2168                                                                    
                                                                               
REPRESENTATIVE BARNES asked Mr. Cook what if the statute is clear              
on its face.                                                                   
                                                                               
MR. COOK replied clarity is always in the eye of the beholder.  If             
a court feels that a statute is clear on its face, there would be              
no room for interpretation.  It would be an administrative and                 
executive function.                                                            
                                                                               
Number 2218                                                                    
                                                                               
CO-CHAIRMAN HUDSON asked Mr. Cook whether the same trustee                     
responsibility of the legislative and executive branches exists at             
the federal level.  He wondered whether Congress and the President             
have a public trust over all of the federal lands in Alaska along              
with the state legislative and executive branches.                             
                                                                               
Number 2266                                                                    
                                                                               
MR. COOK replied, "Yes."  But, it is not just like a state's public            
trust doctrine.  There are at least 51 different public trust                  
doctrines from the individual states, and the federal public trust             
doctrine is less developed.                                                    
                                                                               
Number 2300                                                                    
                                                                               
CO-CHAIRMAN HUDSON referred to ANILCA and asked Mr. Cook, if a                 
federal law requires a particular handling of a public trust that              
is in conflict with a state's constitution, could it be amended and            
still be within the purview of the public trust doctrine.                      
                                                                               
Number 2360                                                                    
                                                                               
MR. COOK replied the federal government can do things that state               
governments can not because of the Fourteenth Amendment.  The                  
federal government can treat different groups of citizens in ways              
that state governments can not.  The federal government plays by               
different rules when executing trust responsibilities.                         
                                                                               
Number 2410                                                                    
                                                                               
CO-CHAIRMAN HUDSON referred to the Alaska Statehood Act, and                   
wondered whether the federal government has violated the state's               
statehood rights.                                                              
                                                                               
TAPE 98-17, SIDE A                                                             
Number 0027                                                                    
                                                                               
MR. COOK replied the court decision regarding the 90/10 split would            
answer the question.  But, he has not found legal arguments that               
rely on the compacts theory persuasive.  Instead, he has been more             
persuaded with the arguments that Congress has the right to pass               
legislation further down the road to change what an earlier                    
congress has done.  It does not sound fair, but that is the more               
persuasive legal argument.                                                     
                                                                               
Number 0206                                                                    
                                                                               
REPRESENTATIVE BARNES commented the Alaska Statehood Act and the               
constitution were voted on by the people as a compact between the              
people and the federal government.  She, therefore, wondered how               
one could change it while the other one could not.                             
                                                                               
Number 0235                                                                    
                                                                               
MR. COOK replied it seems to be the way it works.  Congress is                 
supreme.  There was no doubt about who bought and owned who at the             
time and how Alaska became a sovereign state.  It is easy to accept            
legally, not emotionally, that Congress can change a statute                   
previously adopted.  The option at the time was to remain as a                 
territory, but the Territorial Commission was managing the fish and            
wildlife.  The rights given through the Alaska Statehood Act,                  
legally, could be to some extent taken away.  He is not fully                  
versed on the compacts theory, however.                                        
                                                                               
Number 0401                                                                    
                                                                               
REPRESENTATIVE JOE GREEN wondered whether the federal government               
could break contracts with other countries.  He also wondered                  
whether a state could break a contract with a company, and would               
the breaker of a contract be subject to the damages.                           
                                                                               
Number 0459                                                                    
                                                                               
MR. COOK replied the questions are beyond the scope of what he is              
prepared to discuss today.  But, yes the United States breaks                  
agreements with other countries and other countries break                      
agreements with the United States and sometimes there are damages              
available.  It is a matter of international law.  And, yes the                 
United States breaks contracts with private companies and sometimes            
there are damages available.                                                   
                                                                               
Number 0551                                                                    
                                                                               
CO-CHAIRMAN OGAN referred to the 1953 Submerged Land Act in which              
states were granted the title to submerged lands beneath water.                
The Act gave a fair amount of authority to the federal government              
for the "use, development, improvement or control arising from the             
constitutional authority of Congress to regulate or improve                    
navigation to provide for flood control or the production of                   
power."  The Act also affirms the right and the power of the states            
to "manage, administer, lease, develop, and use the said lands and             
natural resources in accordance with all applicable state law."                
The dissenting opinion from Judge Cynthia Hall in Katie John quoted            
the Submerged Land Act and begged the legislature to fix it.  In               
addition, it was unthinkable a number of years ago that the federal            
government would even consider it had the right to manage fisheries            
on navigable waters.  He asked Mr. Cook to comment on the case law.            
                                                                               
Number 0711                                                                    
                                                                               
MR. COOK replied federal fisheries management has traditionally                
occurred in the sea beyond the three-mile limit inscribed to the               
state.  The concept of navigability has been vague over the years              
and subject to pulsating definitions.  Federal management of fish              
and wildlife inside the state, outside of federal reservations, has            
not been the norm in the past.  Nonetheless, the federal government            
has powers that it does not need to exercise.  But, sometime it                
does not know it has powers until the Supreme Court says so.  He               
looks forward to a statement by the Supreme Court that might give              
a greater measurement of state management authority over fisheries             
on navigable streams of which the bed is owned by the state.                   
                                                                               
Number 0861                                                                    
                                                                               
CO-CHAIRMAN HUDSON stated, in the even the state loses single                  
management and the federal government takes over, how accountable              
would the federal government be for the mismanagement of the common            
resources.                                                                     
                                                                               
Number 0903                                                                    
                                                                               
MR. COOK replied it would be incorrect to say that the state has               
sole management authority right now in light of the extensive                  
federal responsibilities exerted for a number of years over marine             
fisheries, fishing and hunting on federal lands, the Migratory Bird            
Treaty Act, the Fur Seal Protection Act, and the Marine Mammal                 
Protection Act.  Therefore, if the state does not conform to                   
ANILCA, it stands to lose its limited amount of management                     
authority that it now has on federal lands.  The state would still             
retain management authority over state lands and some state waters.            
                                                                               
MR. COOK further replied, in reference to accountability, the state            
would not get anything.  The state has a very broad standard of                
equitable and wise management, according to the Metlakatla                     
decision.  He does not know, however, whether there are enforceable            
and justiciable management standards that pertain to the federal               
government.  It would be tough to make a case against the federal              
government to get relief in general, but maybe in a specific                   
situation.                                                                     
                                                                               
Number 1115                                                                    
                                                                               
CO-CHAIRMAN OGAN noted the latest amendment to ANILCA says, "In                
accordance with Title VIII of this Act, the Secretary of Interior              
is 'required' to manage fish and wildlife for subsistence uses on              
'all' public lands in Alaska because of the failure of state law to            
provide a rural preference."  It is interesting to note that                   
contrary to Senator Stevens' comments, the subsection would only be            
repealed on the date a law is not adopted.  Therefore, a rural                 
priority would also extend authority, not just judicial or implied             
authority, to the Secretary of Interior.  He asked Mr. Cook whether            
the state is slowly being reduced to territorial status.                       
                                                                               
Number 1183                                                                    
                                                                               
MR. COOK replied there is not anything inherently evil about                   
federal management, but the state's perspective is generally                   
superior to the federal's perspective.  He is proud to have been a             
members of the Department of Fish and Game; it is the operation                
that should be in charge of the state's resources.                             
                                                                               
CO-CHAIRMAN OGAN thanked Mr. Cook for his time today and for the               
time it took to prepare for the meeting.                                       
                                                                               
Number 1223                                                                    
                                                                               
REPRESENTATIVE NICHOLIA asked Co-Chairman Ogan when the committee              
members will receive a sectional analysis for the new proposed                 
committee substitute.                                                          
                                                                               
CO-CHAIRMAN OGAN replied a partial sectional analysis has been                 
provided.  He does not want to order more than one as the bill                 
changes.                                                                       
                                                                               
Number 1253                                                                    
                                                                               
REPRESENTATIVE JOULE asked Co-Chairman Ogan whether a fiscal not is            
being developed.                                                               
                                                                               
CO-CHAIRMAN OGAN replied a fiscal note is forthcoming.  A bill can             
not be passed out of a committee without one.                                  
                                                                               
Number 1269                                                                    
                                                                               
CO-CHAIRMAN OGAN recessed the meeting to the call of the chair at              
3:03 p.m.                                                                      
                                                                               
                                                                               

Document Name Date/Time Subjects