Legislature(1999 - 2000)

04/14/1999 01:09 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         HOUSE RESOURCES STANDING COMMITTEE                                                                                     
                   April 14, 1999                                                                                               
                     1:09 p.m.                                                                                                  
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Scott Ogan, Co-Chair                                                                                             
Representative Jerry Sanders, Co-Chair                                                                                          
Representative Beverly Masek, Vice Chair                                                                                        
Representative John Harris                                                                                                      
Representative Carl Morgan                                                                                                      
Representative Ramona Barnes                                                                                                    
Representative Jim Whitaker                                                                                                     
Representative Reggie Joule                                                                                                     
Representative Mary Kapsner                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
HOUSE BILL NO. 104                                                                                                              
"An Act revising the procedures and authority of the Alaska                                                                     
Commercial Fisheries Entry Commission, the Board of Fisheries, and                                                              
the Department of Fish and Game to establish a moratorium on                                                                    
participants or vessels, or both, participating in certain                                                                      
fisheries; and providing for an effective date."                                                                                
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
* HOUSE BILL NO. 116                                                                                                            
"An Act relating to the Board of Agriculture and Conservation, to                                                               
the agricultural revolving loan fund, to the disposal of state                                                                  
agricultural land, and to the Alaska Natural Resource Conservation                                                              
and Development Board; and providing for an effective date."                                                                    
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
SENATE JOINT RESOLUTION NO. 20                                                                                                  
Relating to the removal of beaver from Washington, D.C.                                                                         
                                                                                                                                
     - [PENDING REFERRAL] SCHEDULED BUT NOT HEARD                                                                               
                                                                                                                                
(* First public hearing)                                                                                                        
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HB 104                                                                                                                    
SHORT TITLE: ENTRY MORATORIA ON PARTICIPANTS/VESSELS                                                                            
SPONSOR(S): REPRESENTATIVES(S) HUDSON, Austerman                                                                                
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/19/99       260     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 2/19/99       260     (H)  FSH, RES                                                                                            
 3/08/99               (H)  FSH AT  5:00 PM CAPITOL 124                                                                         
 3/08/99               (H)  MOVED CSHB 104(FSH)                                                                                 
 3/08/99               (H)  MINUTE(FSH)                                                                                         
 3/10/99       408     (H)  FSH RPT  CS(FSH) NT 4DP                                                                             
 3/10/99       408     (H)  DP: KAPSNER, MORGAN, WHITAKER, HUDSON                                                               
 3/10/99       408     (H)  ZERO FISCAL NOTE (F&G)                                                                              
 3/10/99       408     (H)  REFERRED TO RES                                                                                     
 4/14/99               (H)  RES AT  1:00 PM CAPITOL 124                                                                         
                                                                                                                                
BILL: HB 116                                                                                                                    
SHORT TITLE: BOARD OF AGRICULTURE AND CONSERVATION                                                                              
SPONSOR(S): REPRESENTATIVES(S) JAMES, Harris                                                                                    
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/26/99       324     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 2/26/99       324     (H)  RESOURCES, FINANCE                                                                                  
 3/10/99       418     (H)  COSPONSOR(S): HARRIS                                                                                
 4/14/99               (H)  RES AT  1:00 PM CAPITOL 124                                                                         
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
REPRESENTATIVE BILL HUDSON                                                                                                      
Alaska State Legislature                                                                                                        
Capitol Building, Room 108                                                                                                      
Juneau, Alaska  99801                                                                                                           
Telephone:  (907) 465-3744                                                                                                      
POSITION STATEMENT:  Testified as sponsor of HB 104.                                                                            
                                                                                                                                
MARY McDOWELL, Commissioner                                                                                                     
Commercial Fisheries Entry Commission                                                                                           
Alaska Department of Fish and Game                                                                                              
8800 Glacier Highway, Suite 109                                                                                                 
Juneau, Alaska  99801-8079                                                                                                      
Telephone:  (907) 789-6160                                                                                                      
POSITION STATEMENT:  Answered questions on HB 104.                                                                              
                                                                                                                                
AMY DAUGHERTY, Lobbyist                                                                                                         
  for Pacific Associates and Alliance Fisheries                                                                                 
327 West 11th Street, Number 2                                                                                                  
Juneau, Alaska  99801                                                                                                           
Telephone:  (907) 463-2568                                                                                                      
POSITION STATEMENT:  Testified in support of HB 104.                                                                            
                                                                                                                                
RAYMOND CAMPBELL                                                                                                                
P.O. Box 23216                                                                                                                  
Ketchikan, Alaska  99901-8216                                                                                                   
Telephone:  (907) 247-3626                                                                                                      
POSITION STATEMENT:  Testified on HB 104.                                                                                       
                                                                                                                                
GERON BRUCE, Legislative Liaison                                                                                                
Office of the Commissioner                                                                                                      
Alaska Department of Fish and Game                                                                                              
P.O. Box 25526                                                                                                                  
Juneau, Alaska  99802-5526                                                                                                      
Telephone:  (907) 465-6143                                                                                                      
POSITION STATEMENT:  Testified in support of HB 104.                                                                            
                                                                                                                                
REPRESENTATIVE JEANNETTE JAMES                                                                                                  
Alaska State Legislature                                                                                                        
Capitol Building, Room 102                                                                                                      
Juneau, Alaska  99801                                                                                                           
Telephone:  (907) 465-3743                                                                                                      
POSITION STATEMENT:  Testified as sponsor of HB 11.                                                                             
                                                                                                                                
DAVID ROGERS, Chair                                                                                                             
Alaska Natural Resource Conservation and Development Board                                                                      
                                                                                                                                
POSITION STATEMENT:  Opposed HB 116 as currently drafted.                                                                       
                                                                                                                                
MARCIA WARD                                                                                                                     
Ward Farms                                                                                                                      
PO Box 1087                                                                                                                     
Delta Junction, Alaska 99737                                                                                                    
Telephone:  (907) 895-5415                                                                                                      
POSITION STATEMENT:  Supported HB 116.                                                                                          
                                                                                                                                
ROBERT FRANKLIN, State President                                                                                                
Alaska Farm Bureau                                                                                                              
PO Box 75184                                                                                                                    
Fairbanks, Alaska 99707                                                                                                         
Telephone:  (907) 488-7738                                                                                                      
POSITION STATEMENT:  Supported HB 116.                                                                                          
                                                                                                                                
STEVE GIBSON, Director                                                                                                          
Homer Soil and Water Conservation District                                                                                      
1622 Highland Drive                                                                                                             
Homer, Alaska 99603                                                                                                             
Telephone:  (907) 235-6487                                                                                                      
POSITION STATEMENT:  Expressed concerns with HB 116.                                                                            
                                                                                                                                
JACKIE BECKER, Active Member and Officer                                                                                        
Kenai Farm Bureau                                                                                                               
PO Box 2832                                                                                                                     
Soldotna, Alaska 99669                                                                                                          
Telephone:  (907) 262-7013                                                                                                      
POSITION STATEMENT:  Supported HB 116.                                                                                          
                                                                                                                                
SIG RESTAD                                                                                                                      
Northland Pioneer Grange                                                                                                        
H03 Box 9571                                                                                                                    
Palmer, Alaska 99645                                                                                                            
Telephone:  (907) 745-3165                                                                                                      
POSITION STATEMENT:  Opposed HB 116 as currently written.                                                                       
                                                                                                                                
JIM ELLISON, Publisher                                                                                                          
Alaska Farmer Magazine                                                                                                          
PO Box 55590                                                                                                                    
North Pole, Alaska 9705                                                                                                         
Telephone:  (907) 488-1970                                                                                                      
POSITION STATEMENT:  "The Alaska Farmer Magazine supports it, maybe                                                             
                     not quite just like it's written, but as what                                                              
                    we see is going to be the finished product."                                                                
                                                                                                                                
BRUCE WILLARD, Rancher                                                                                                          
40520 Waterman Road                                                                                                             
Homer, Alaska 99603                                                                                                             
Telephone:  (907) 235-8830                                                                                                      
POSITION STATEMENT:  Expressed the need for continued work on                                                                   
                     HB 116.                                                                                                    
                                                                                                                                
DOUG WITTE, Program Coordinator                                                                                                 
Alaska Association of Conservation Districts                                                                                    
351 West Parks Highway, Suite 101                                                                                               
Wasilla, Alaska 99654                                                                                                           
Telephone:  (907) 373-7923                                                                                                      
POSITION STATEMENT:  Pledged full support of future legislative                                                                 
                     efforts to encourage agricultural development.                                                             
                                                                                                                                
K. KIRK                                                                                                                         
Plweger Farms                                                                                                                   
PO Box 261                                                                                                                      
Delta Junction, Alaska 99737                                                                                                    
Telephone:  (907) 895-6248                                                                                                      
POSITION STATEMENT:  Fully supported this program.                                                                              
                                                                                                                                
ROB WELLS, Director                                                                                                             
Division of Agriculture                                                                                                         
1800 Glenn Highway, Suite 12                                                                                                    
Palmer, Alaska 99645                                                                                                            
Telephone:  (907) 745-7200                                                                                                      
POSITION STATEMENT:  Expressed concerns with HB 116.                                                                            
                                                                                                                                
SCOTT MILLER                                                                                                                    
Misty Mountain Farms                                                                                                            
HC 60 Box 4140                                                                                                                  
Delta Junction, Alaska 99737                                                                                                    
Telephone:  (907) 895-6208                                                                                                      
POSITION STATEMENT:  Supported HB 116.                                                                                          
                                                                                                                                
WAYNE BOUWENS, 65 year Alaskan resident                                                                                         
Chairman, Palmer Soil and Water Conservation District                                                                           
Box 1274                                                                                                                        
Palmer, Alaska 99645                                                                                                            
Telephone:  (907) 745-3687                                                                                                      
POSITION STATEMENT:  Expressed the need to do more work on HB 116.                                                              
                                                                                                                                
DICK ZOBEL, Member                                                                                                              
AKNRCDB and the Wasilla Soil and Water Conservation District                                                                    
Wasilla, Alaska 99687                                                                                                           
Telephone:  (907) 376-5640                                                                                                      
POSITION STATEMENT:  Testified that the bill that would include two                                                             
                     people would not do the job.                                                                               
                                                                                                                                
BARBARA COTTING, Legislative Assistant                                                                                          
     to Representative James                                                                                                    
Alaska State Legislature                                                                                                        
Capitol Building, Room 102                                                                                                      
Juneau, Alaska  99801                                                                                                           
Telephone:  (907) 465-3743                                                                                                      
POSITION STATEMENT:  Responded to questions.                                                                                    
                                                                                                                                
PETE FELLMAN, Delta Dairy Farmer                                                                                                
No address provided.                                                                                                            
Telephone:  (907) 465-4359                                                                                                      
POSITION STATEMENT:  Testified on HB 116.                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-25, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CO-CHAIR SCOTT OGAN called the House Resources Standing Committee                                                               
meeting to order at 1:09 p.m. [date stated on record as April 13].                                                              
Members present at the call to order were Representatives Ogan,                                                                 
Sanders, Masek, Harris, Morgan, Barnes and Whitaker.                                                                            
Representative Joule arrived just after the call to order, and                                                                  
Representative Kapsner arrived at 1:20 p.m.                                                                                     
                                                                                                                                
HB 104 - ENTRY MORATORIA ON PARTICIPANTS/VESSELS                                                                                
                                                                                                                                
Number 0101                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN announced that the first item of business would be                                                                
House Bill No. 104, "An Act revising the procedures and authority                                                               
of the Alaska Commercial Fisheries Entry Commission, the Board of                                                               
Fisheries, and the Department of Fish and Game to establish a                                                                   
moratorium on participants or vessels, or both, participating in                                                                
certain fisheries; and providing for an effective date."  Before                                                                
the committee was CSHB 104(FSH).                                                                                                
                                                                                                                                
Number 0154                                                                                                                     
                                                                                                                                
REPRESENTATIVE BILL HUDSON, Alaska State Legislature, sponsor,                                                                  
noted that Mary McDowell of the Commercial Fisheries Entry                                                                      
Commission (CFEC) could answer technical questions.  He explained                                                               
that HB 104 amends existing moratorium law to provide for a                                                                     
streamlined and more effective process, in order to better manage                                                               
Alaska's fisheries resources.  The current moratorium statute,                                                                  
which Ms. McDowell could address, has proven cumbersome and                                                                     
unworkable.  That, in turn, prevents quick response - not only by                                                               
the CFEC, but also by other agencies - to fisheries that are                                                                    
growing too rapidly to ensure effective management.  As a result,                                                               
both the resource and the economic livelihoods of the participants                                                              
could be jeopardized.                                                                                                           
                                                                                                                                
REPRESENTATIVE HUDSON pointed out that a new element is allowing                                                                
petitioners to request a moratorium directly from the CFEC.  The                                                                
moratorium would be established if the CFEC found that it was                                                                   
necessary to promote the conservation and sustained yield                                                                       
management of the resource, and the economic health and stability                                                               
of commercial fishing in the state.  The bill also authorizes the                                                               
CFEC to implement a moratorium on entry of new vessels, as well as                                                              
participants, providing an additional management tool when a number                                                             
of different skippers are used on one vessel, as occurs in some                                                                 
offshore fisheries.                                                                                                             
                                                                                                                                
REPRESENTATIVE HUDSON informed members that HB 104 allows the state                                                             
to extend its moratorium authority to offshore fisheries adjacent                                                               
to state waters, when it is consistent with federal law.  The                                                                   
state's fisheries go out three miles, and the territorial sea goes                                                              
out twelve miles.  However, there are fisheries that move in and                                                                
out of both state and federal waters.  Wherever there is a                                                                      
consistency, the CFEC would be able to apply this moratorium, to                                                                
take care of the health of the fisheries there.                                                                                 
                                                                                                                                
REPRESENTATIVE HUDSON advised the committee that the bill also                                                                  
authorizes the CFEC to extend the current moratorium on the Bering                                                              
Sea Korean hair crab and the weathervane scallop fisheries for an                                                               
additional two years.  "We gave, by law, a few years back, the                                                                  
authority or the ability for them to create a four-year                                                                         
moratorium," he noted, "and this would give them an additional two                                                              
years."  He indicated that Ms. McDowell could explain why that is                                                               
needed, then reminded members that a similar bill had passed the                                                                
House during the Twentieth Alaska State Legislature, with                                                                       
overwhelming support.                                                                                                           
                                                                                                                                
Number 0490                                                                                                                     
                                                                                                                                
REPRESENTATIVE BARNES brought attention to two letters from Ray                                                                 
Campbell, which discussed the belief that amendments made to HB 204                                                             
the previous year had greatly improved the bill, but were not                                                                   
included in the present legislation.  She asked why Representative                                                              
Hudson had chosen not to introduce the final version from the                                                                   
previous legislature.                                                                                                           
                                                                                                                                
REPRESENTATIVE HUDSON answered that it was primarily at the                                                                     
recommendation of the CFEC.  He deferred to Ms. McDowell.                                                                       
                                                                                                                                
Number 0632                                                                                                                     
                                                                                                                                
MARY McDOWELL, Commissioner, Commercial Fisheries Entry Commission                                                              
(CFEC),  Alaska Department of Fish and Game (ADF&G), explained that                                                             
this bill incorporates everything adopted by the House last year,                                                               
but is missing one amendment made in the Senate Resources                                                                       
Committee; that amendment had jumped into the next phase, saying                                                                
that any fishery that came under a moratorium under these                                                                       
provisions could not later go under a limited entry program with a                                                              
transferable permit.  Other changes have been made to address                                                                   
concerns expressed as the previous bill went through.  In                                                                       
particular, Co-Chairman Ogan had expressed concern about making                                                                 
sure that the Board of Fisheries continued to have involvement in                                                               
the process; that has been incorporated in several places in the                                                                
bill.                                                                                                                           
                                                                                                                                
Number 0734                                                                                                                     
                                                                                                                                
REPRESENTATIVE BARNES asked why the Senate Resources Committee                                                                  
amendment was not incorporated.  She also requested that Ms.                                                                    
McDowell address the fact that once a limited entry permit exists,                                                              
it becomes a thing of value that can be sold or transferred.                                                                    
                                                                                                                                
MS. McDOWELL noted that transferability is controversial, in that                                                               
it creates value for permits when they are transferred for money.                                                               
However, that feature has kept the limited entry program as Alaskan                                                             
as it is today.  It is a constitutional way for permits to change                                                               
hands, from a parent to a child, for example, and still not be                                                                  
considered a closed class under the federal constitution and                                                                    
interstate commerce.  Without transferability, if the permits came                                                              
back to the state, to be handed back out, the list of those who                                                                 
would receive them would have to include nonresidents and everyone                                                              
else.  A parent could no longer transfer a permit to his or her                                                                 
child, to keep it in the family.                                                                                                
                                                                                                                                
Number 0836                                                                                                                     
                                                                                                                                
REPRESENTATIVE BARNES said she doesn't believe that is a good                                                                   
argument.  She asked whether it is not a fact that permit owners                                                                
sell their permits outside of their families, "for big bucks."                                                                  
                                                                                                                                
MS. McDOWELL agreed they can be sold, although many permits change                                                              
hands as a gift, inheritance or survivorship to the spouse at the                                                               
death of the permit holder.  Restating that transferability has                                                                 
always been controversial, she reported that 77 percent of all                                                                  
permits are in the hands of Alaskans, and the system has been                                                                   
upheld as constitutional.  The legislature, in adopting limited                                                                 
entry, had felt that transferability was a feature of the program                                                               
that would help make that happen, she added, which seems to have                                                                
proven true over the years.                                                                                                     
                                                                                                                                
Number 0943                                                                                                                     
                                                                                                                                
REPRESENTATIVE BARNES responded that although limited entry was                                                                 
approved by a constitutional amendment, that doesn't make it right.                                                             
She said the resources belong to all the people of this state,                                                                  
adding, "I don't believe that 77 percent of the permits are still                                                               
held by Alaskan residents, because people from Washington, Oregon,                                                              
North Carolina and all over own those permits and come up here and                                                              
fish every year, when Alaskan people can't fish."                                                                               
                                                                                                                                
Number 1021                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN asked Ms. McDowell to specifically address Section 1,                                                             
as well as the remainder of the bill.                                                                                           
                                                                                                                                
MS. McDOWELL explained that the bill essentially fine-tunes and                                                                 
updates this one aspect of the limited entry law.  The intent is to                                                             
meet the needs of the evolving Alaska fisheries.  Although current                                                              
law has a moratorium provision for the CFEC, it is not a useful                                                                 
tool because it requires a long, cumbersome process.  Fishermen who                                                             
recognize the need for some kind of cap on their fishery would have                                                             
to petition the commissioner of the ADF&G, who would then go to the                                                             
Board of Fisheries; the board would schedule it on their agenda,                                                                
then decide whether to give the commissioner of the ADF&G                                                                       
permission to then petition the CFEC.  This process could take                                                                  
months or years.                                                                                                                
                                                                                                                                
MS. McDOWELL pointed out that the lengthy process could actually                                                                
worsen the situation by causing a rush into that fishery by                                                                     
speculators.  "As soon as you notify people that we're considering                                                              
having a lid put on this fishery, and then give them a year or two                                                              
to rush in, participate and get grandfathered in, you actually                                                                  
aggravate the problem," she explained, adding that no one has ever                                                              
petitioned for a moratorium under the current statute, because it                                                               
is so cumbersome and counterproductive.                                                                                         
                                                                                                                                
MS. McDOWELL noted that the situation that gives rise to the need                                                               
for a more effective moratorium process didn't exist when the                                                                   
Limited Entry Act was passed in 1973, when people could primarily                                                               
make a living in one fishery.  Now fisheries are diversifying, she                                                              
said.  New fisheries are springing up, for under-utilized species                                                               
and gear types, for example.  This is good economic development and                                                             
diversification for the state, and it creates job opportunities.                                                                
However, these new fisheries tend to come into existence and expand                                                             
very rapidly, and they can quickly create a resource conservation                                                               
or overcapitalization problem.  That is why a more efficient                                                                    
moratorium process is more important than ever now.  Ms. McDowell                                                               
advised members:                                                                                                                
                                                                                                                                
     Currently, ... the only tool we have for getting a quick                                                                   
     handle on an expanding fishery is limited entry.  So,                                                                      
     this bill could actually avoid the need to go straight to                                                                  
     a limited entry permit program in a fishery.  If a                                                                         
     fishery is mushrooming, a moratorium would give us a tool                                                                  
     for putting a temporary lid on that fishery, and give us                                                                   
     four years to assess the resource, look over the fishery,                                                                  
     go the Board of [Fisheries] and see if they have an                                                                        
     alternative way of getting a handle on that fishery -                                                                      
     gear restrictions or whatever.                                                                                             
                                                                                                                                
     So, it's possible that this moratorium tool would                                                                          
     actually prevent the need to go into limited entry in                                                                      
     some of these fisheries, because it buys you some time to                                                                  
     get a lid on something that's getting out of control and                                                                   
     figure out what the next step should be.  During that                                                                      
     four years, we could assess the situation, determine                                                                       
     whether we need to propose limited entry and, if so, how                                                                   
     to best structure it to conserve the resource and take                                                                     
     care of the orderly development of that fishery, and to                                                                    
     look for alternatives to limited entry for that fishery.                                                                   
                                                                                                                                
     So, we believe that the ability to administratively enact                                                                  
     a moratorium like this is a very important management                                                                      
     tool, ... and helps keep our options open for the future.                                                                  
     And the whole bill is structured to make this process so                                                                   
     that the fishermen could petition the entry commission.                                                                    
     There'd be an open public process, then, for public                                                                        
     comment and so on, ... while that moratorium is in place,                                                                  
     and just avoids this need to go through this convoluted                                                                    
     process of going to the commissioner, who goes to the                                                                      
     board, who goes back to the commissioner, who comes to                                                                     
     the commission.  And we believe this process is a sound                                                                    
     one.                                                                                                                       
                                                                                                                                
Number 1304                                                                                                                     
                                                                                                                                
MS. McDOWELL advised members that Representative Hudson had asked                                                               
her to address the issue of extending moratoriums.  She reported                                                                
that the moratoriums enacted by the legislature in the last two                                                                 
years - on dive fisheries, scallops and hair crab - have all been                                                               
for four years.  This bill allows for those moratoriums, or any                                                                 
enacted in the future under this statute, if necessary, to be                                                                   
extended for up to two more years.  She stated:                                                                                 
                                                                                                                                
     We would hope to not have to use that tool in any                                                                          
     fishery, because people need some certainty, and there                                                                     
     should, ... in most cases, be time to resolve the                                                                          
     question in four years.  If there is an instance where                                                                     
     you can't resolve it in four years, we believe the                                                                         
     ability to extend is an important thing to have.  For                                                                      
     example, if the Board of [Fisheries] is planning to take                                                                   
     action and get a lid on things some other way, this would                                                                  
     buy time for doing that.                                                                                                   
                                                                                                                                
     In the case of the scallop fishery and the Korean hair                                                                     
     crab fishery, the legislature put those under a                                                                            
     moratorium based on the vessels, not on the individuals.                                                                   
     We don't have a vessel limited entry program.  Right now,                                                                  
     we don't really have a tool in place to limit those                                                                        
     fisheries before those moratoriums expire.  We've drafted                                                                  
     legislation to do that, but until that's passed, we don't                                                                  
     really have a tool for limiting those fisheries.  If we                                                                    
     didn't have the ability to extend this, and the                                                                            
     moratorium would expire on those fisheries, it gets                                                                        
     thrown wide-open to open access again, and probably would                                                                  
     create a rush of nonresidents into the fisheries.  So,                                                                     
     that provision for extending the moratorium is one we                                                                      
     would hope to not have to use, but believe is an                                                                           
     important tool to have in place, in case it ever is                                                                        
     needed.                                                                                                                    
                                                                                                                                
Number 1409                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN referred to Ms. McDowell's comments about creating a                                                              
rush into a fishery.  He noted that interstate commerce laws                                                                    
prohibit discrimination against nonresidents.                                                                                   
                                                                                                                                
MS. McDOWELL explained that in the case of the fisheries under                                                                  
moratorium now, if the moratorium expired and there were no                                                                     
limitation in place, it would go back to open access and anyone                                                                 
could get back in.  In the case of a couple of the fisheries in the                                                             
Exclusive Economic Zone (EEZ), the concern is that several other                                                                
fisheries have been closed; license limitation has been put in                                                                  
place in federal waters, and "there are boats looking for things to                                                             
do, many of those nonresident vessels that could move into the                                                                  
fisheries."  If there were a lag time between when a moratorium was                                                             
proposed and its implementation, there potentially would be a rush                                                              
of speculators who weren't already active participants, who may                                                                 
jump in to see whether they can be grandfathered in.                                                                            
                                                                                                                                
Number 1499                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN asked whether, if this moratorium legislation isn't                                                               
passed, the ADF&G, through the board, could limit seasons or take                                                               
a total poundage limit, for example.                                                                                            
                                                                                                                                
MS. McDOWELL affirmed that, noting that those are tools the board                                                               
has all of the time.  The moratorium wouldn't even be proposed in                                                               
a fishery if tools were already in place to keep a lid on that                                                                  
fishery, she explained.  A moratorium could get a handle on a                                                                   
fishery that is mushrooming and hold it at its present level while                                                              
the Board of Fisheries has time to act.  If the board had tools and                                                             
met in the meantime, and if it found a way to get a handle on that                                                              
fishery, then the need to limit it, at the end of the moratorium,                                                               
would go away.                                                                                                                  
                                                                                                                                
Number 1544                                                                                                                     
                                                                                                                                
REPRESENTATIVE BARNES recalled that the last moratorium, for the                                                                
dive fishery, was for four years.  Noting the request to provide                                                                
authorization to extend that two years, she asked, "In four years,                                                              
you mean to tell me, the board of fish and game has not addressed                                                               
the problem in that dive fishery?"                                                                                              
                                                                                                                                
MS. McDOWELL answered that the moratorium is in place now, in the                                                               
dive fishery, and they hope it will be resolved by the end of the                                                               
four years; a number of species are under that one moratorium.                                                                  
This bill would not extend that moratorium, but it would provide                                                                
the ability to do that.  Ms. McDowell pointed out that there are                                                                
several proposals floating around, about combined fisheries or                                                                  
endorsements, for example, where one permit would be handed out for                                                             
all the dive fisheries, but there would be endorsements for                                                                     
individual species.  She stated:                                                                                                
                                                                                                                                
     We don't have the ability to do that now.  But if the                                                                      
     legislature decided that you were interested in providing                                                                  
     that tool, there might be a reason to hold off on                                                                          
     finalizing the action on limitation until we knew whether                                                                  
     that tool was going to be provided. ... We would always                                                                    
     try to finish making a decision in four years, because                                                                     
     people need certainty, they need to get on their lives.                                                                    
     And if it's going to be opened up, it needs to be opened                                                                   
     up; if it's going to be limited, it needs to be limited.                                                                   
     So, our goal would always be [to] resolve it in four                                                                       
     years.  We're primarily concerned about hair crab and                                                                      
     scallops right now, where it's a vessel moratorium.  We                                                                    
     don't have a vessel limitation program.  We don't have a                                                                   
     way to limit those right now, ... unless given the tools                                                                   
     to do a vessel limitation.                                                                                                 
                                                                                                                                
Number 1675                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN noted that he had provided members with copies of the                                                             
section of Title 16 that is repealed by Section 1 of the bill.                                                                  
                                                                                                                                
Number 1705                                                                                                                     
                                                                                                                                
AMY DAUGHERTY, Lobbyist for Pacific Associates and Alliance                                                                     
Fisheries, came forward, clarifying that she was speaking on behalf                                                             
of hair crabbers and scallop vessel owners.  She read her written                                                               
testimony into the record, with comments, as follows:                                                                           
                                                                                                                                
     I'm here to speak in support of this legislation.  In my                                                                   
     four-year tenure with the Fisheries Committee, I assisted                                                                  
     in putting through two statutory moratoriums, for the                                                                      
     hair crab  and scallop fisheries.  In both cases, the                                                                      
     harvesting effort was beginning to exceed what those                                                                       
     small fisheries could endure, so we contained them                                                                         
     legislatively.  We were fortunate that these situations                                                                    
     were dealt with so expediently in a political setting,                                                                     
     but that was before most of the legislature's attention                                                                    
     was on budget concerns and subsistence.                                                                                    
                                                                                                                                
     Of particular importance in this bill are Sections 2 and                                                                   
     8, which would allow CFEC to extend the current                                                                            
     moratoriums up to two years.  The hair crabbers and                                                                        
     scallopers, who I now represent, are in support of                                                                         
     extending their current moratoriums, especially if a more                                                                  
     long-term solution cannot be attained.  It is critical                                                                     
     that we not let these fisheries open up again.  In both                                                                    
     cases, open access would open a floodgate of effort, to                                                                    
     the extent where these small fisheries ... would be                                                                        
     difficult or impossible to manage ....                                                                                     
                                                                                                                                
     Particularly in the hair crab fisheries, now that AFA                                                                      
     [American Fisheries Act] has passed and pollock is                                                                         
     essentially co-oped, there's a lot of flexibility, so                                                                      
     that they can assign their pollock quota.  And this, I                                                                     
     believe, is the only fishery that's open in the EEZ,                                                                       
     which is just a red flag for people to rush into. ...                                                                      
                                                                                                                                
     I hope the legislature will enable the state with this                                                                     
     management tool.  Both of these fisheries reside                                                                           
     primarily offshore in federal waters yet have been                                                                         
     delegated to the state for management.  Both have a                                                                        
     higher percentage of Alaskan involvement than most                                                                         
     offshore fisheries.  If the state effectively "drops the                                                                   
     ball" or neglects to show interest, it increases the                                                                       
     likelihood that these fisheries will return to federal                                                                     
     management.  It's in Alaska's best interest to have its                                                                    
     fishery management tools in place.                                                                                         
                                                                                                                                
     My partner, Joe Kyle, is an Alaskan designate on the                                                                       
     North Pacific Fishery Management Council, and he couldn't                                                                  
     be with us today.  But he stated on numerous occasions                                                                     
     that Alaska needs to show its capability in fisheries                                                                      
     management, in order to retain control of these                                                                            
     fisheries, and also to keep our state's best interest                                                                      
     prevailing in the offshore fisheries.  He has indicated                                                                    
     that restoring a license limitation program under a                                                                        
     federal regime would most probably decrease Alaska's                                                                       
     involvement in these fisheries.  It's just a matter of                                                                     
     numbers out there.                                                                                                         
                                                                                                                                
     Why should you care?  These fisheries add to Alaska's                                                                      
     economy.  They pay landing tax or business tax and fuel,                                                                   
     and, I believe, $1,000 annual license fees.  Some                                                                          
     Alaskans participate in these fisheries.  Some have                                                                        
     direct employment, and some have indirect.  They can't                                                                     
     help but add to the Alaskan economy when they sell to                                                                      
     processors onshore or the product is shipped through                                                                       
     Anchorage after charter planes pick up the produce from                                                                    
     the grounds.  They buy fuel and groceries from Alaskans.                                                                   
     They strengthen our state's infrastructure.                                                                                
                                                                                                                                
     This legislation will enable CFEC to more effectively do                                                                   
     their job, limiting participation when fishing effort                                                                      
     exceeds a level of sustainability - resource and economic                                                                  
     sustainability.  I urge your support for HB 104.                                                                           
                                                                                                                                
Number 1989                                                                                                                     
                                                                                                                                
RAYMOND CAMPBELL testified via teleconference from Ketchikan.  A                                                                
former commercial fisherman, he told members he was put out of                                                                  
business on a moratorium.  It seems that public access is being                                                                 
described as a convoluted procedure, he said.  "We're talking about                                                             
very valuable resources here, and to have a small group of people                                                               
go in and petition the CFEC, to put a moratorium on a fishery, and                                                              
then have the CFEC just do it, it seems to be taking a lot of the                                                               
public process out of it," he stated.                                                                                           
                                                                                                                                
MR. CAMPBELL said he understands that there have been more than ten                                                             
requests to place other fisheries under a moratorium.  If this bill                                                             
goes through, the CFEC could shut down those fisheries through a                                                                
moratorium, putting people out of work.  Furthermore, he suggested,                                                             
removal of transferability and getting rid of the money incentive                                                               
may keep speculators from getting into the fisheries.  If this bill                                                             
goes through, he wants to see it amended as HB 204 was amended in                                                               
the last session.  "And I think the whole issue of limited entry                                                                
won't be an issue anymore, if we take the transferability and the                                                               
money incentive out of it," he concluded.                                                                                       
                                                                                                                                
Number 2115                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN asked Mr. Campbell about his letter dated March 11,                                                               
1999, which says in the fourth paragraph that there have been                                                                   
transfers of moratorium permits, which puts a value on them.  He                                                                
asked Mr. Campbell if he could cite specific examples of what the                                                               
transfers have been.                                                                                                            
                                                                                                                                
MR. CAMPBELL answered, "There have been transfers of the moratorium                                                             
permits in the dive fisheries; there have been medical transfers.                                                               
... One of the things that the dive moratorium did was it gave                                                                  
permits to people who never participated in the urchin fishery, and                                                             
maybe Miss [McDowell] can give us numbers on how many medical                                                                   
transfers there's been on moratorium permits in the dive fishery.                                                               
And that is driven by money, too. ... On a medical transfer,                                                                    
there's money traded."                                                                                                          
                                                                                                                                
Number 2261                                                                                                                     
                                                                                                                                
GERON BRUCE, Legislative Liaison, Office of the Commissioner,                                                                   
Alaska Department of Fish and Game (ADF&G), came forward,                                                                       
specifying that the ADF&G supports this legislation.  He said he                                                                
would focus on biological issues relating to why a moratorium is                                                                
helpful in maintaining the health of the resources.  He told                                                                    
members:                                                                                                                        
                                                                                                                                
     As both the sponsor and Ms. McDowell indicated, there's                                                                    
     increased interest in Alaska in developing the new                                                                         
     fisheries on species that are currently under-utilized or                                                                  
     not utilized at all. ... In nearly all cases involving                                                                     
     these species, the department knows very little about                                                                      
     their life history, the distribution, how productive they                                                                  
     are, how they will respond to commercial harvest. ... And                                                                  
     so, we are very cautious in approaching new fisheries,                                                                     
     and there have been cases where new fisheries have been                                                                    
     started - abalone is probably the instance I'd like to                                                                     
     use the best in Southeast Alaska, where an abalone                                                                         
     fishery started off at a very low level at first,                                                                          
     interest in it expanded, harvest rapidly expanded, beyond                                                                  
     what the resource could support, the fishery collapsed,                                                                    
     and we no longer have an abalone fishery.                                                                                  
                                                                                                                                
     And while there are mechanisms that we can put on - using                                                                  
     seasons, quotas or trip limits, other kinds of things -                                                                    
     you don't always know which of those tools are                                                                             
     appropriate.  And you have to remember, always, that                                                                       
     we're starting, with these new fisheries, with very, very                                                                  
     limited information about the size of the resource, its                                                                    
     productivity, and its ability to respond to intensive                                                                      
     harvest.  So, ... we often need some time to begin to                                                                      
     develop some information, because in some cases, the                                                                       
     fishery may actually be the only way we have of                                                                            
     collecting information.  We're not getting increased                                                                       
     funding for supporting new fisheries, so there's very                                                                      
     limited funds.  We basically have to borrow from the                                                                       
     staff that's dedicated to existing fisheries to try to                                                                     
     begin to collect this information.  And so, sometimes the                                                                  
     fishery itself is a very important data collection tool.                                                                   
                                                                                                                                
     However, being a fishery, it ... doesn't operate the same                                                                  
     way that a scientific survey would.  And that's part of                                                                    
     the reason why you need to be cautious, and why a                                                                          
     moratorium like this would be very helpful.  It helps the                                                                  
     department be able to ensure that while we may not have                                                                    
     exact data about the size of the resource and its                                                                          
     productivity, we can do our best to hold the harvest at                                                                    
     a conservative level, until we get enough information                                                                      
     that we can then increase the harvest or allow the                                                                         
     harvest to conform to what the resource ... can sustain.                                                                   
     So, for those reasons, Mr. Chairman, we are in support of                                                                  
     this legislation and urge you to pass it.                                                                                  
                                                                                                                                
Number 2437                                                                                                                     
                                                                                                                                
REPRESENTATIVE MASEK asked whether the number of permits is a                                                                   
factor in establishing a quota.                                                                                                 
                                                                                                                                
MR. BRUCE replied that it wouldn't be a factor in establishing the                                                              
quota, which would be based on the size of the resource, its                                                                    
productivity, its distribution, and the harvest that it could                                                                   
maintain on a sustained basis.                                                                                                  
                                                                                                                                
Number 2494                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN asked whether anyone else wished to testify, then                                                                 
announced that he wouldn't close public testimony at this time.                                                                 
[HB 104 was held over.]                                                                                                         
                                                                                                                                
HB 116 - BOARD OF AGRICULTURE AND CONSERVATION                                                                                  
                                                                                                                                
Number 2520                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN announced that the next item of business would be                                                                 
House Bill No. 116, "An Act relating to the Board of Agriculture                                                                
and Conservation, to the agricultural revolving loan fund, to the                                                               
disposal of state agricultural land, and to the Alaska Natural                                                                  
Resource Conservation and Development Board; and providing for an                                                               
effective date."  Co-Chair Ogan informed listeners that he didn't                                                               
intend to move the bill today, but was trying to arrange an                                                                     
informal hearing in his own district on Saturday, April 17, 1999,                                                               
as this affects his own district greatly.                                                                                       
                                                                                                                                
Number 2546                                                                                                                     
                                                                                                                                
REPRESENTATIVE JEANNETTE JAMES, Alaska State Legislature, sponsor,                                                              
explained that HB 116 would establish some continuity in the                                                                    
agricultural activities of the state as well as consolidate some                                                                
activities by making three boards into one.  The Board of                                                                       
Agriculture is set up to be the operative of the Division of                                                                    
Agriculture and the current director would be hired as the                                                                      
Executive Director by the board.  Personally, Representative James                                                              
believed that agriculture is best directed by those involved in                                                                 
agriculture.  She pointed out that the board would be the Board of                                                              
Agriculture and Conservation and would consist of nine members.  As                                                             
mentioned the current director of the Division of Agriculture would                                                             
be the Executive Director, one member would be the commissioner of                                                              
the Department of Natural Resources (DNR), two members would be                                                                 
from Alaska Soil & Water Conservation, and four from different                                                                  
enterprises involved in the commercial production of agriculture.                                                               
Of those four, one would be from a statewide agricultural promotion                                                             
organization and one with business or financial expertise.  This                                                                
would be a three year, rotating board.  Representative James                                                                    
commented that this is a work in progress and there is no intent to                                                             
make a decision on this legislation this year.                                                                                  
                                                                                                                                
REPRESENTATIVE HARRIS moved to adopt the proposed committee                                                                     
substitute (CS), version LS0407\N, Cook, 4/8/99, as the working                                                                 
document before the committee.  There being no objection, it was so                                                             
ordered.                                                                                                                        
                                                                                                                                
REPRESENTATIVE JAMES pointed out that the legislation does not                                                                  
currently have a fiscal note because a fiscal note cannot be                                                                    
prepared until the process with the legislation is completed.                                                                   
                                                                                                                                
CO-CHAIR OGAN commented that at first glance, HB 116 looks as if it                                                             
would save money.                                                                                                               
                                                                                                                                
REPRESENTATIVE JAMES said that is the goal.                                                                                     
                                                                                                                                
CO-CHAIR OGAN turned to the public testimony.                                                                                   
                                                                                                                                
Number 2788                                                                                                                     
                                                                                                                                
DAVID ROGERS, Chair, Alaska Natural Resource Conservation and                                                                   
Development Board (AKNRCDB), pointed out that AKNRCDB is one of the                                                             
boards that is proposed to be merged with the new Agriculture and                                                               
Conservation Board.  He noted that most folks have never heard of                                                               
AKNRCDB or understand soil and water conservation districts, but                                                                
due to time constraints he said he would not go into the detail on                                                              
that.  Mr. Rogers informed the committee that AKNRCDB is a governor                                                             
appointed, five member board which represents all of the regions of                                                             
the state.  The board works closely with the 11 soil and water                                                                  
conservation districts.  The board is a link between the districts                                                              
and the government, in particular the Department of Environmental                                                               
Conservation (DEC) and the Department of Natural Resources (DNR).                                                               
The board provides administrative support and money pass through                                                                
and can also advise the commissioner with regard to agricultural                                                                
grazing and timber issues.  Furthermore, the AKNRCDB is the board                                                               
of supervisors for the Alaska District which is the twelfth                                                                     
conservation district, all the area outside of the 11 organized                                                                 
soil and water conservation districts.  Mr. Rogers reviewed the                                                                 
location of the districts which may be the first public-private                                                                 
partnership.                                                                                                                    
                                                                                                                                
MR. ROGERS announced that he supported the concept of an                                                                        
agriculture policy board, but he was concerned with giving the                                                                  
board land management authority.  With regard to merging the                                                                    
Agricultural Revolving Loan Fund (ARLf) and the Dairy Board, he was                                                             
neutral.  Mr. Rogers strongly opposed merger of AKNRCDB with the                                                                
new board.  The AKNRCDB is not just an agricultural board, but a                                                                
board that also concerns itself with conservation issues in                                                                     
general.  The fear is that absorption into a new board with many                                                                
duties...                                                                                                                       
                                                                                                                                
TAPE 99-25, SIDE B                                                                                                              
                                                                                                                                
MR. ROGERS appreciated the efforts to bring the commissioner and                                                                
two members into the mix, but concern remains.  Therefore, he                                                                   
opposed HB 116 as currently drafted.                                                                                            
                                                                                                                                
CO-CHAIR OGAN inquired as to why the chairman of the AKNRCDB                                                                    
resides in Juneau.                                                                                                              
                                                                                                                                
MR. ROGERS informed the committee that he is a representative of                                                                
Southeast Alaska as well as an oyster farmer.  Therefore, he                                                                    
qualified as an cooperator.  He offered his help to the committee.                                                              
                                                                                                                                
Number 2878                                                                                                                     
                                                                                                                                
MARCIA WARD, Ward Farms, testified via teleconference from Delta                                                                
Junction.  Ms. Ward supported HB 116 as it is currently drafted.                                                                
She did not understand the opposition of Mr. Rogers and others in                                                               
conservation.  Ms. Ward believed that AKNRCDB would become a                                                                    
stronger board with seven conservation members.  She guessed that                                                               
the four farmer representatives on the new board would be                                                                       
cooperators and members of the local and state soil and water                                                                   
conservation districts.  She also suspected that one statewide                                                                  
agricultural promotion organization would have a cooperator as a                                                                
representative.  Therefore, conservation would benefit from this                                                                
proposal.                                                                                                                       
                                                                                                                                
MS. WARD stressed that agriculture needs to be represented and                                                                  
farmers in the business of farming need to sit on the new board.                                                                
Furthermore, consolidation must occur in the interest of money.                                                                 
She commented that it has been quite some time since an                                                                         
appropriation has been received from the legislature to support                                                                 
agriculture.  Yet, the National Resource Conservation Service                                                                   
(NRCS) board takes money from ARLf to fund their board and                                                                      
executive director with no return to the ARLf.  She noted that she                                                              
and her husband have used the ARLf in the past.  For new farmers,                                                               
the gap is tightening.  She emphasized the need for low interest                                                                
money to support new developing farmers and the need for control of                                                             
agricultural lands.  "The Division of Lands clings to agricultural                                                              
lands as though they were a goldmine of their own."  In conclusion,                                                             
Ms. Ward urged the committee to consider HB 116 as currently                                                                    
drafted.                                                                                                                        
                                                                                                                                
Number 2711                                                                                                                     
                                                                                                                                
ROBERT FRANKLIN, State President, Alaska Farm Bureau, testified                                                                 
next via teleconference from Fairbanks.  He noted that HB 116 was                                                               
discussed at length during the Spring board meeting.  Furthermore,                                                              
the construction and support of a Board of Agriculture has been on                                                              
the resolution board for years.  He commented that the Farm Bureau                                                              
will continue to work with legislators on this issue.  Mr. Franklin                                                             
supported HB 116.                                                                                                               
                                                                                                                                
STEVE GIBSON, Director, Homer Soil and Water Conservation District,                                                             
testified via teleconference from Homer.  He noted that first he                                                                
would speak for the district.  The Homer district has determined                                                                
that reorganization may or may not be a good choice, but the                                                                    
inclusion of the district would be a loss of representation.  He                                                                
identified the narrowing focus as the main reason for "not coming                                                               
on board with the proposed statute."   The conservation concerns                                                                
for miners, the timber industry, et cetera would not be recognized                                                              
as agriculture.  Furthermore, there may be geographical problems                                                                
with regard to some areas being more represented than others.                                                                   
                                                                                                                                
MR. GIBSON then spoke as an individual.  He believed that there                                                                 
will be a considerable long-term fiscal impact with HB 116.  This                                                               
legislation would place many state resources into the ARLf and                                                                  
discounts many of those assets based upon the nine member board.                                                                
That should be reviewed.  Additionally, the board is exempted from                                                              
the public meeting which may be problematic, especially since the                                                               
board is empowered to own its own members' money.                                                                               
                                                                                                                                
Number 2500                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN stated that he had received the Association of Soil                                                               
and Water Conservation letter dated April 5, 1999, from Omar                                                                    
Stratman.  Co-Chair Ogan asked if Mr. Gibson had seen the letter.                                                               
                                                                                                                                
MR. GIBSON said it was brought to his attention this morning.  He                                                               
commented that the Homer district would second the comments in the                                                              
letter.                                                                                                                         
                                                                                                                                
JACKIE BECKER, Active Member and Officer, Kenai Farm Bureau,                                                                    
testified via teleconference from Kenai.  She informed the                                                                      
committee that she and her husband were currently planning and                                                                  
working toward owning their own farm.  Ms. Becker supported HB 116                                                              
and believed the new board would help save money through                                                                        
consolidation.  Furthermore, the life of the ARLf would be extended                                                             
which is important for the next generation of farmers, her son.                                                                 
Currently, that does not look to be the case.  She did not believe                                                              
this consolidation would harm the other boards as much as they                                                                  
think.  There is no intent to destroy any other boards.                                                                         
Additionally, it is important to have active agricultural community                                                             
members as part of the board.                                                                                                   
                                                                                                                                
Number 2344                                                                                                                     
                                                                                                                                
SIG RESTAD, Northland Pioneer Grange, testified next via                                                                        
teleconference from the Mat-Su Valley.  Upon the agricultural                                                                   
committee's review, it is opposed to the current draft of HB 116.                                                               
He recognized that all of state government, including the Division                                                              
of Agriculture, has room for improvement.  However, there is no                                                                 
reason to "reinvent the wheel."  He stated, "A board of seven that                                                              
is kind of a quasi unit, away from the regular governmental                                                                     
procedures does not sound like a way to build up communications                                                                 
with administration and work with the administration."  He                                                                      
questioned how employees would respond under the proposed                                                                       
arrangement.  With regard to the language referring to the notion                                                               
that "land sales and management income may be appropriated," Mr.                                                                
Restad did not believe one could be assured such would be                                                                       
appropriated to the board.  He pointed out that there is                                                                        
legislation from territorial days which utilizes the language                                                                   
"appropriations shall be made to operate this legislation" and that                                                             
is not the case.  Furthermore, there are fiscal additions that are                                                              
not necessary.  He shared some of the concerns of soil and water                                                                
conservation with regard to their ability to maintain their work                                                                
with only two members.  Over many years, the Grange has taken  the                                                              
stand that the Division of Agriculture has an agricultural                                                                      
responsibility, a land conservation and development responsibility,                                                             
and a consumer responsibility.  The division should continue to be                                                              
funded through appropriated funds.  On the other hand, ARLf was                                                                 
established to make agricultural related loans and funds generated                                                              
were to be used to operate the fund and revolve for the benefit of                                                              
future farmers with agricultural loans.  He stressed the need to                                                                
maintain that intent.  There are other ways than HB 116 that could                                                              
better accomplish this.                                                                                                         
                                                                                                                                
CO-CHAIR OGAN requested that any written testimony should be                                                                    
provided to the committee.                                                                                                      
                                                                                                                                
Number 2131                                                                                                                     
                                                                                                                                
ART GRISWOLD, End of the Alaska Highway Grange, testified via                                                                   
teleconference from Delta Junction.  Mr. Griswold supported HB 116.                                                             
In response to Co-Chair Ogan, Mr. Griswold explained that a grange                                                              
is a farmer's paternal organization dating back to the Civil War.                                                               
The grange began to help farmers organize and deal with politics.                                                               
For example, the National Grange has paid lobbyists to advocate for                                                             
legislation and support of agriculture.  Currently, there are four                                                              
active granges in Alaska.                                                                                                       
                                                                                                                                
MR. GRISWOLD commented that he believed Representative James has an                                                             
answer to a potential problem.  There need to be continuing funds                                                               
to develop agriculture.  He recognized that the state will not be                                                               
able to continue to fund agriculture and therefore, it needs to                                                                 
become self-sustaining.  Mr. Griswold said that he would rather pay                                                             
five percent interest to Alaska's fund rather than the federal five                                                             
percent.                                                                                                                        
                                                                                                                                
Number 1920                                                                                                                     
                                                                                                                                
JIM ELLISON, Publisher, Alaska Farmer Magazine, testified via                                                                   
teleconference from Fairbanks.  Mr. Ellison informed the committee                                                              
that he farms stock and fowl.  He commented that one must remember                                                              
that this is about agriculture.  There is no question that a board                                                              
can better represent farmers and land conservation.  Mr. Ellison                                                                
noted that he has farmed and ranched in Alaska for 30 years and has                                                             
never had to use state funds.  If the desire is for agriculture to                                                              
grow in Alaska, there must be people in positions with agricultural                                                             
experience.  He believed this to be a good start.  "The Alaska                                                                  
Farmer Magazine supports it, maybe not quite just like it's                                                                     
written, but as what we see is going to be the finished product."                                                               
                                                                                                                                
BRUCE WILLARD, Rancher, testified via teleconference from Homer.                                                                
He noted that he has been a rancher since 1959.  Mr. Willard                                                                    
supported the Board of Agriculture having people on the board that                                                              
are in agriculture.  Other than that, more work on the legislation                                                              
is necessary.  He believed that the folks from the soil and water                                                               
conservation boards have some "qualified reasons" for opposition.                                                               
                                                                                                                                
Number 1698                                                                                                                     
                                                                                                                                
DOUG WITTE, Program Coordinator, Alaska Association of Conservation                                                             
Districts, testified via teleconference from the Mat-Su Valley.                                                                 
The aforementioned reference to the letter dated April 5, 1999, was                                                             
sent to each member of the House Resources Committee.  He explained                                                             
that the Alaska Association of Conservation Districts is a                                                                      
501(c)(3) nonprofit organization which supports the efforts of all                                                              
13 Alaskan soil and water conservation districts.  These 13                                                                     
districts represent 65 locally elected supervisors and more than                                                                
850 private land owners.  At the convention in March, the                                                                       
association supported the concept of the Board of Agriculture.                                                                  
However, the association opposes the consolidation of the AKNRCDB                                                               
and any of the authorities under AS 41.10 as outlined by Mr.                                                                    
Rogers.  The association supports the appointment of a member of                                                                
the Alaska Conservation District movement to one of the nine member                                                             
boards.  Furthermore, the association does not recognize any cost                                                               
savings as a result of the proposed consolidation under HB 116.  He                                                             
expressed interest in being involved in the fiscal note process.                                                                
                                                                                                                                
MR. WITTE commented, "Although a number of out supervisors and/or                                                               
cooperators with the districts have a whole-hearted concern and                                                                 
interest in issues such as the operation management of Matanuska                                                                
Maid, Mt. McKinley meats, and ... other assets within the [indisc.]                                                             
portfolio; they also have an interest in the day-to-day                                                                         
responsibilities, marketing and inspection unit within the Division                                                             
of Agriculture and they probably have ... an interest in the                                                                    
policies and procedures that guide ARLf operating, development, and                                                             
processing loans."  Mr. Witte informed the committee that the main                                                              
mission of the association is "to guide the development of lands                                                                
classified for agriculture following proven soil and water                                                                      
conservation methods and that the integrity of the farm and ranch                                                               
resources are protected over time."  Under AS 38.05.321 a farm                                                                  
development plan was required as part of a agriculture land sale                                                                
contract until two years ago.  The farm development plan outlined                                                               
the location of the farmsteaders and real property improvements as                                                              
well as areas to be managed for commercial timber.  These are                                                                   
obviously tied to the physical features of the farm tract and                                                                   
easily expressed on a map and referred to as the conservation plan.                                                             
That is the document the soil and water conservation districts are                                                              
expected to provide the land contract holder.  Currently, this is                                                               
on a voluntary basis per 11 AC 67.180. Although the farm                                                                        
development plan under AS 39.05.321 was repealed by SB 109, the                                                                 
conservation planning requirement remains.  Whether  land and                                                                   
resource concerns are agriculture, it is critical to recognize the                                                              
physical and environmental limitations.  This type of planning is                                                               
done to support and offer the type of science and natural resource                                                              
management assistance which is practically unavailable to the                                                                   
average private landowner.  Mr. Witte pledged support of future                                                                 
legislative industry development of agriculture in Alaska.                                                                      
                                                                                                                                
Number 1295                                                                                                                     
                                                                                                                                
K. KIRK, Plweger Farms, indicated that HB 116 was a great piece of                                                              
legislation.  For the first time, people in agriculture will be                                                                 
making decisions on agriculture.  Overall, HB 116 is written well.                                                              
He commented, "Fort the first time, since we started this                                                                       
agriculture program, ... it is meeting the requirements of the                                                                  
farmer."  He recalled the clearing requirements when this program                                                               
first began.  The farmers received the farms with the trees on the                                                              
farms in October.  The farmers were told that the first payment had                                                             
to be received the next October.  This meant that a farm had to be                                                              
clear, put into production, and make a profit on the farm within                                                                
the first year.  The man that made that decision did not know what                                                              
farmers had to do.  That caused problems and ultimately led to the                                                              
state giving a moratorium for a year.  Mr. Kirk fully supported                                                                 
this program.                                                                                                                   
                                                                                                                                
ROB WELLS, Director, Division of Agriculture, testified via                                                                     
teleconference from the Mat-Su Valley.  Mr. Wells noted that the                                                                
division has some concerns, but the division's current position is                                                              
neutral.  He discussed the meeting schedule of the ARLf board and                                                               
the Creamery Corporation.  The Creamery Corporation was                                                                         
purposefully set up an arm's length from ARLf in order that it was                                                              
not subject to state procurement rules.  This allowed them to run                                                               
similar to a private enterprise.  That procedure has been                                                                       
successful to date.  He expected that the new Board of Agriculture                                                              
under HB 116, due to the board's new responsibilities, would have                                                               
more meetings.  Therefore, there are concerns regarding the                                                                     
perceived savings through consolidation of these boards.  The                                                                   
current ARLf board has demonstrated that it is fiscally                                                                         
conservative as evidenced by the Division of Legislative Audit who                                                              
viewed ARLf loan procedures and approval in 1997 to be approaching                                                              
what is expected in the private lending sector.                                                                                 
                                                                                                                                
MR. WELLS expressed concern with the CS in regard to the                                                                        
independent authority of this Board of Agriculture and whether it                                                               
is not part of the executive branch.  If it is part of the                                                                      
executive branch, this board would be subject to the Executive                                                                  
Ethics Act.  He noted that the Division of Lands has significant                                                                
concerns with the Title 38 land disposal responsibilities in HB
116.  Mr. Wells announced that he had pledged to work with                                                                      
Representative James over the interim to develop solutions.                                                                     
                                                                                                                                
Number 0592                                                                                                                     
                                                                                                                                
SCOTT MILLER, Misty Mountain Farms, testified via teleconference                                                                
from Delta Junction.  He informed the committee that he was the                                                                 
local Delta Chapter, Farm Bureau President.  Mr. Miller supported                                                               
HB 116 for three reasons.  Firstly, HB 116 brings the current ARLf                                                              
interest rates more in line with other lending institutions which                                                               
is necessary to support agricultural development.  Secondly, there                                                              
is no meaningful assistance for the drought situation in Delta                                                                  
Junction.  He indicated it to be in the state's interest to have a                                                              
restructuring program for farmers.  Thirdly, Mr. Miller supported                                                               
the concept of the Board of Agriculture as well as having farmers                                                               
directing quality and development.  This legislation makes good                                                                 
sense and would help Alaskan agriculture develop and build its                                                                  
agricultural industry.                                                                                                          
                                                                                                                                
WAYNE BOUWENS, 65 year Alaskan resident; Chairman, Palmer Soil and                                                              
Water Conservation District, testified next via teleconference from                                                             
the Mat-Su Valley.  He noted that he has been involved in                                                                       
agriculture for most of those 65 years.  Mr. Bouwens said that he                                                               
would like to see a Division of Agriculture.  He commented that the                                                             
soil and water conservation movement will suffer under the proposed                                                             
new board.  In conclusion, Mr. Bouwens said HB 116 needs more work.                                                             
                                                                                                                                
Number 0206                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN announced that he planned to meet with those                                                                      
interested in this issue in his district individually after the                                                                 
town meeting scheduled for Saturday, April 17, 1999.                                                                            
                                                                                                                                
DICK ZOBEL, Member, AKNRCDB, testified via teleconference from the                                                              
Mat-Su Valley.  He believed Mr. Rogers had outlined the AKNRCDB's                                                               
position.  He noted that he has been involved with the conservation                                                             
districts since 1976 and is therefore, a member of the Wasilla Soil                                                             
and Water Conservation District which is a member of the Alaska                                                                 
Association of Soil and Water Conservation Districts.  He recalled                                                              
the use of the word "power" during the hearing.                                                                                 
                                                                                                                                
TAPE 99-26, SIDE A                                                                                                              
                                                                                                                                
MR. ZOBEL stressed that the conservation districts are not power                                                                
organizations.  These districts are made up of volunteers.  Anyone                                                              
that enters the local conservation district is sent by the state or                                                             
is a private landowner requesting help.  Mr. Zobel commented that                                                               
the conservation districts do not want power.  The comment that HB
116 is an agricultural bill makes the conservation districts, the                                                               
state association, and the state board apprehensive because they                                                                
have a broader vision than just agriculture.  Mr. Zobel turned to                                                               
the issue of funding and stressed that there were years that no                                                                 
funding was received and creative measures were taken to provide                                                                
the service.  In closing, the bill that would include two people                                                                
(from the soil and water conservation districts) would not do the                                                               
job.                                                                                                                            
                                                                                                                                
Number 0244                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN stated that if anyone wanted to add further comments,                                                             
he would allow that at this time.                                                                                               
                                                                                                                                
MR. FRANKLIN requested that Representative James address the                                                                    
conservation issue.  He did not see anything in HB 116 that affects                                                             
the districts.                                                                                                                  
                                                                                                                                
BARBARA COTTING, Legislative Assistant to Representative James,                                                                 
Alaska State Legislature, responded that there is no intention to                                                               
take anything away from the districts.  The idea is to consolidate                                                              
several boards who are not effective standing alone in order to                                                                 
strengthen the functions of all the boards.  How that is                                                                        
accomplished probably does need work.  Therefore, everything is                                                                 
open for negotiation.  Ms. Cotting agreed with Mr. Franklin that                                                                
the language in HB 116, as currently written, does not affect the                                                               
conservation districts.                                                                                                         
                                                                                                                                
MR. FRANKLIN pointed out that there are two different entities, 13                                                              
soil and water conservation districts and the state soil and water                                                              
conservation board.                                                                                                             
                                                                                                                                
PETE FELLMAN, Delta Dairy Farmer, informed the committee that he                                                                
has been actively farming for 20 years and has been involved with                                                               
soil and water conservation for that time as well.  He noted that                                                               
he was testifying on his own behalf, although he is staff to                                                                    
Representative Harris.  Mr. Fellman turned to the makeup of the                                                                 
board.  One of the members must be of a general business background                                                             
which could be in mining, logging, fishing, et cetera.  Two of the                                                              
members will be actively involved with soil and water conservation                                                              
districts.  One of the members would be the commissioner of DNR,                                                                
who would have statewide interest.  Therefore, four members would                                                               
be farmers or from farmer groups.  Currently, there are 13                                                                      
conservation districts while only four districts are represented by                                                             
people living in that district.  The number proposed under HB 116                                                               
would have eight people from the 13 districts who could be on the                                                               
conservation board.  Therefore, these groups will become more valid                                                             
and more fully represent the state.  Mr. Fellman emphasized that                                                                
this will not affect most of the money that comes to soil and water                                                             
conservation which comes through a federal division, NRCS.  He                                                                  
indicated that there is no controversy surrounding the ARLf and the                                                             
need to move the interest in line with the Farm Service Agency                                                                  
(FSA) which can help farmers during such situations as droughts.                                                                
He referred to the letter from Omar Stratman(ph); this will not                                                                 
affect the districts.                                                                                                           
                                                                                                                                
CO-CHAIR OGAN acknowledged that this is a major change in the way                                                               
business is done in agriculture.  He noted his support of                                                                       
agriculture due to its importance in everyone's life.  HB 116 was                                                               
held in committee.                                                                                                              
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
There being no further business before the committee, the House                                                                 
Resources Standing Committee meeting was adjourned at 2:57 p.m.                                                                 

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