Legislature(2013 - 2014)BARNES 124

03/11/2013 01:00 PM House RESOURCES


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01:03:22 PM Start
01:03:40 PM HB158
03:13:27 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 158 DNR HUNTING CONCESSIONS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         March 11, 2013                                                                                         
                           1:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Eric Feige, Co-Chair                                                                                             
Representative Dan Saddler, Co-Chair                                                                                            
Representative Peggy Wilson, Vice Chair                                                                                         
Representative Mike Hawker                                                                                                      
Representative Craig Johnson                                                                                                    
Representative Kurt Olson                                                                                                       
Representative Paul Seaton                                                                                                      
Representative Geran Tarr                                                                                                       
Representative Chris Tuck                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Andrew Josephson                                                                                                 
Representative Bob Herron                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 158                                                                                                              
"An  Act authorizing  the commissioner  of  natural resources  to                                                               
implement a  hunting guide concession program  or otherwise limit                                                               
the  number  of  individuals  authorized   to  conduct  big  game                                                               
commercial guiding on state land."                                                                                              
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 158                                                                                                                  
SHORT TITLE: DNR HUNTING CONCESSIONS                                                                                            
SPONSOR(s): REPRESENTATIVE(s) COSTELLO                                                                                          
                                                                                                                                
03/05/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/05/13       (H)       RES, JUD, FIN                                                                                          
03/11/13       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE MIA COSTELLO                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as sponsor of HB 158.                                                                          
                                                                                                                                
ED FOGELS, Deputy Commissioner                                                                                                  
Office of the Commissioner                                                                                                      
Department of Natural Resources (DNR)                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided a PowerPoint overview of the DNR's                                                              
state's guide concession program.                                                                                               
                                                                                                                                
MR. FLEENER, Deputy Commissioner                                                                                                
Office of the Commissioner                                                                                                      
Alaska Department of Fish & Game (ADF&G)                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Presented a PowerPoint and answered                                                                      
questions during the discussion of HB 158.                                                                                      
                                                                                                                                
MR. KELLY VREM, Master Guide 102; Chair                                                                                         
Big Game Commercial Services Board (BGCSB)                                                                                      
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  Testified and answered questions during the                                                              
discussion of HB 158.                                                                                                           
                                                                                                                                
MR. PAUL JOHNSON, Registered Guide 463                                                                                          
Gull Cove, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of HB 158.                                                               
                                                                                                                                
TED SPRAKER, Chair                                                                                                              
Board of Game (BOG)                                                                                                             
Soldotna, Alaska                                                                                                                
POSITION STATEMENT:  Testified and answered questions during the                                                              
discussion of HB 158.                                                                                                           
                                                                                                                                
CLARK COX, Natural Resources Manager                                                                                            
Department of Natural Resources (DNR)                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified and answered questions during the                                                              
discussion of HB 158.                                                                                                           
                                                                                                                                
POSITION STATEMENT:  Testified and answered questions during the                                                              
discussion of HB 158.                                                                                                           
                                                                                                                                
THOR STACEY, Registered Guide 1194; Lobbyist                                                                                    
Alaska Professional Hunters Association (APHA)                                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the discussion of HB 158.                                                               
                                                                                                                                
JOE KLUTSCH, Master Guide 91; Representative                                                                                    
Alaska Professional Hunters Association (APHA)                                                                                  
King Salmon, Alaska                                                                                                             
POSITION STATEMENT:  Testified during the discussion of HB 158.                                                               
                                                                                                                                
BILL STEVENSON, Registered Guide 661                                                                                            
Sutton, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the discussion of HB 158.                                                               
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:03:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  ERIC   FEIGE  called   the  House   Resources  Standing                                                             
Committee meeting to order at  1:03 p.m.  Representatives Hawker,                                                               
Johnson, Tuck,  Olson, P. Wilson,  Tarr, Saddler, and  Feige were                                                               
present at the  call to order.  Representative  Seaton arrived as                                                               
the  meeting  was in  progress.    Representatives Josephson  and                                                               
Herron were also present.                                                                                                       
                                                                                                                                
                 HB 158-DNR HUNTING CONCESSIONS                                                                             
                                                                                                                                
1:03:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE  announced that the  only order of  business would                                                               
be HOUSE  BILL NO. 158,  "An Act authorizing the  commissioner of                                                               
natural  resources  to  implement   a  hunting  guide  concession                                                               
program or  otherwise limit the number  of individuals authorized                                                               
to conduct big game commercial guiding on state land."                                                                          
                                                                                                                                
1:04:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MIA COSTELLO,  Alaska  State Legislature,  stated                                                               
that  HB 158  would give  the Commissioner  of the  Department of                                                               
Natural  Resources   authority  to  implement  a   hunting  guide                                                               
concession  program.   She explained  the purpose  of introducing                                                               
this bill is for the state  to answer the question of whether the                                                               
state should have  a guide concession area program.   She offered                                                               
that  last  legislative   session  the  legislature  appropriated                                                               
funding  for Department  of Natural  Resources (DNR)  to work  on                                                               
public comment  and preparation  for such a  program.   While the                                                               
issue is not new, HB 158  would allow the legislature to weigh in                                                               
and take  public testimony.   She expressed  an interest  in land                                                               
stewardship,  wildlife conservation,  and  to  promote a  healthy                                                               
hunting guide industry.                                                                                                         
                                                                                                                                
REPRESENTATIVE COSTELLO said  the state management of  game is an                                                               
important issue.   Several departments  and two boards  have been                                                               
involved  in this  issue.   Additionally,  she  advised that  the                                                               
House  Finance  budget  subcommittee  removed  funding  for  this                                                               
program since it  is important for the legislature  to answer the                                                               
aforementioned question.                                                                                                        
                                                                                                                                
1:07:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COSTELLO raised  the  issue  of overcrowding  and                                                               
over  utilization  in  some  game  management  areas  (GMUs)  and                                                               
underutilization  in other  GMU areas.   Additionally,  conflicts                                                               
with other user  groups routinely occur.  She  offered her belief                                                               
this is  a significant issue for  the state to address,  which is                                                               
one  reason the  committee room  is so  full today.   This  issue                                                               
pertains to land management and  game management issues that must                                                               
be answered.  She summarized her  interest is to ensure the state                                                               
manages its game and resources for generations to come.                                                                         
                                                                                                                                
1:08:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON  inquired   whether  the  sponsor  has                                                               
considered  allowing  the  hunting guide  concession  program  to                                                               
evolve  regionally to  address  over  or underutilization  rather                                                               
than to take a statewide approach.                                                                                              
                                                                                                                                
REPRESENTATIVE COSTELLO  said the DNR's Division  of Mining, Land                                                               
and Water have conducted work related  to this issue.  One of the                                                               
things the  DNR has  indicated is  that it  would like  to retain                                                               
some flexibility  to address  some of  the issues.   Thus  HB 158                                                               
specifically gives  the power of  creating such a program  to the                                                               
commissioner, while the details  would be designed by regulation,                                                               
especially through the ongoing public comment period.                                                                           
                                                                                                                                
1:09:15 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE noted that today's testimony is by invitation.                                                                   
                                                                                                                                
1:10:28 PM                                                                                                                    
                                                                                                                                
ED  FOGELS,  Deputy  Commissioner, Office  of  the  Commissioner,                                                               
Department  of Natural  Resources (DNR),  introduced himself  and                                                               
recognized some members  of the audience.  He  offered to provide                                                               
an  overview   of  the  guide  concession   program,  noting  the                                                               
department began  its efforts in  2006.  The department  has been                                                               
asked to  provide a  solution and this  is DNR's  proposal, which                                                               
should not be  taken lightly since the  program could potentially                                                               
significantly increase  government and  will require a  number of                                                               
staff to implement  and run the proposed  program.  Additionally,                                                               
the  bill  would  create  more oversight  and  regulation  of  an                                                               
industry  at  a  time  when  government  is  moving  toward  less                                                               
regulation.                                                                                                                     
                                                                                                                                
1:12:25 PM                                                                                                                    
                                                                                                                                
MR.  FOGELS asked  to focus  on the  problems to  be solved.   He                                                               
related that  the Alaska Department  of Fish & Game  (ADF&G), the                                                               
Board of Game  (BOG), and the Big Game  Commercial Services Board                                                               
(BGCSB) have  helped outline the  issues related to big  game and                                                               
guiding.  First, one question that  has been asked is why DNR has                                                               
been  assigned  to  solve  the  issue.   He  predicted  that  the                                                               
testimony   from  the   BOG  and   the  BGCSB   will  be   fairly                                                               
enlightening.  Second,  he asked whether this  proposal will help                                                               
the guiding  industry, which is  an important sector  of Alaska's                                                               
economy that contributes  hundreds of millions of  dollars to the                                                               
state's economy.  He stated  that members of the guiding industry                                                               
will testify on the proposal.   Third, he asked whether the guide                                                               
concession  program (GCP)  would  help the  state's wildlife  and                                                               
answered that the ADF&G and BOG  will testify on the GCP's effect                                                               
on wildlife  management.  Finally,  he asked whether  the program                                                               
will help the public and if  non-guided members will benefit.  He                                                               
suggested that  the board members  will be able to  enlighten the                                                               
committee  and  members  of  the   public  will  testify  on  the                                                               
proposal.                                                                                                                       
                                                                                                                                
1:13:41 PM                                                                                                                    
                                                                                                                                
MR.  FOGELS provided  a brief  history of  the guide  industry in                                                               
Alaska.   In 1974,  the BOG established  an area  system limiting                                                               
guides to operate  within Exclusive Guide Areas (EGA).   By 1976,                                                               
the  program was  extended statewide  [slide  2].   In 1978,  the                                                               
Alaska Supreme Court  (ASC) found the EGA system unconstitutional                                                               
for several reasons.   First, the ASC found a  lack of connection                                                               
to  wildlife  management.    Second,  the  ASC  found  the  guide                                                               
industry did not  provide any remuneration to the  state.  Third,                                                               
the  ASC  found  the  industry was  not  subject  to  competitive                                                               
bidding and  exclusivity, and  finally, the  ASC found  the guide                                                               
areas  were of  unlimited duration  without contractual  terms or                                                               
restrictions.                                                                                                                   
                                                                                                                                
MR. FOGELS explained the proposed  Guide Concession Program (GCP)                                                               
in HB 158 [slide 3].  He  explained that the DNR is responding to                                                               
a problem  identified by  members of  the guiding  community, the                                                               
BGCSB,  and  the  Board  of Game  (BOG).    Additionally,  former                                                               
Governor Palin supported the DNR  proposal as did a strong sector                                                               
of the guiding industry.  In  essence, the program would create a                                                               
system  that  manages  and distributes  guided  hunting  pressure                                                               
through a  competitive process that  would be implemented  on all                                                               
state lands.                                                                                                                    
                                                                                                                                
1:15:16 PM                                                                                                                    
                                                                                                                                
MR.  FOGELS highlighted  the reason  to implement  the system  on                                                               
state lands,  including briefly  outlining the  issues identified                                                               
by  the guide  industry, the  BGCSB ,and  the BOG.   The  issues,                                                               
related  to  the  ongoing  problems   identified  in  the  field,                                                               
included   a    decreased   incentive   to    practice   wildlife                                                               
conservation, especially  in high  use areas.   The  industry has                                                               
experienced  a   decreased  quality  of  experience   for  guided                                                               
clients.   Other  problems  include  increased conflicts  between                                                               
user   groups,  an   overall  lack   of  land   stewardship,  and                                                               
difficulties enforcing game laws.   In short, these represent the                                                               
problems the DNR would attempt to accomplish with its program.                                                                  
                                                                                                                                
1:16:07 PM                                                                                                                    
                                                                                                                                
MR.  FOGELS turned  to slide  5, entitled,  "Anticipated Benefits                                                               
and Most Common  Concerns of the GCP."  He  explained an economic                                                               
reason exists to  help the guiding industry in  Alaska.  Although                                                               
the  primary goal  of  the  GCP is  to  promote  a healthy  guide                                                               
industry, other concerns have been  raised about the program from                                                               
the public and some guides.                                                                                                     
                                                                                                                                
MR.  FOGELS briefly  reviewed the  2011 Guide  License by  Class,                                                               
indicating  the  total  number  of  guides  is  1,428,  with  312                                                               
contracting guides,  or those who  booked at least one  trip last                                                               
year [slide 6].                                                                                                                 
                                                                                                                                
1:17:15 PM                                                                                                                    
                                                                                                                                
MR.  FOGELS  highlighted  that the  concession  system  has  been                                                               
implemented  on  other  lands in  Alaska,  with  110  concessions                                                               
available on  Fish and  Wildlife refuges  [slide 7].   Currently,                                                               
the U.S.  Park Service  has 36 concessions,  and the  U.S. Forest                                                               
Service has  35 concessions.   If the  DNR's GCP goes  forward an                                                               
additional  298 concessions  would be  added for  a total  of 479                                                               
concessions.   Recalling  the 312  contracting guides  previously                                                               
mentioned,  he noted  there are  currently more  concessions than                                                               
guides operating at this time.                                                                                                  
                                                                                                                                
MR. FOGELS  related that  a white paper  was distributed  in 2009                                                               
with  a  113-day  comment  period, in  which  277  comments  were                                                               
received  [slide  8].    A  proposed  decision  was  released  on                                                               
February 15,  2012, with  a 68-day comment  period, in  which 190                                                               
comments were  received.  The  DNR just finished a  37-day public                                                               
comment period for the Framework  Management Document released on                                                               
January  23, 2013,  with the  department  receiving 77  comments.                                                               
Currently,  the DNR  has been  working  to fully  analyze the  77                                                               
comments,  although   most  of   the  comments   were  reasonably                                                               
supportive of the  program.  He noted very  specific feedback was                                                               
received.   He offered  his belief that  the department  can work                                                               
within many of the comments,  but some go beyond the "sideboards"                                                               
placed by the ASC's decision.                                                                                                   
                                                                                                                                
1:19:20 PM                                                                                                                    
                                                                                                                                
MR.  FOGELS described  the proposed  GCP Design  [slide 9].   The                                                               
program would  offer two types  of concessions, full  and limited                                                               
concessions.   The  full  concession has  been  designed for  the                                                               
guide who  has been  in the business  as a  serious professional,                                                               
noting 208 guides  fit this category.   Additionally, the limited                                                               
concession  has  been  designed  for  entry-level  guides,  which                                                               
currently number 90.   Each guide would be required  to submit an                                                               
application  to compete  for the  136 guide  areas in  the state.                                                               
All applications  would then  be evaluated  and scored  by panels                                                               
comprised of agency  staff.  The concessions would  be offered to                                                               
the highest scoring applicants within  each guide concession area                                                               
and  according to  number of  concessions available  and type  of                                                               
concession application.   He  indicated that  no bidding  will be                                                               
allowed under this proposal.                                                                                                    
                                                                                                                                
MR. FOGELS  discussed violations  [slide 10].   He said  that DNR                                                               
scoring  will reflect  any violations  by guides.   Additionally,                                                               
while  the  fee  structure  is   complicated,  it  is  ultimately                                                               
designed  to pay  for the  cost of  the program  estimated to  be                                                               
about $1.4 million per year.   As the program is implemented, the                                                               
fees  will  be evaluated  to  make  sure  the program  costs  are                                                               
covered, which will be set by  regulation.  In essence, the DNR's                                                               
goal  is to  cover costs  but not  overcharge or  undercharge for                                                               
concessions.                                                                                                                    
                                                                                                                                
1:21:56 PM                                                                                                                    
                                                                                                                                
MR.   FOGELS   directed   attention  to   slide   12,   entitled,                                                               
"Transferability and  Vacancies."  Concession areas  would not be                                                               
allowed to be  transferred, sold, or exchanged so as  not to risk                                                               
being  unconstitutional.   He  emphasized  this  initiated a  big                                                               
debate  on  the  program;  however, the  Department  of  Law  has                                                               
indicated  it is  important not  to risk  being unconstitutional.                                                               
Additionally,  a system  for vacancies  has been  developed.   He                                                               
indicated  the  system is  somewhat  complicated,  which will  be                                                               
discussed in more detail later.                                                                                                 
                                                                                                                                
1:22:42 PM                                                                                                                    
                                                                                                                                
MR.  FOGELS  pointed  out  two  slides provide  a  sense  of  the                                                               
concession area  maps [slides 13-14].   He stated that  maps have                                                               
been prepared for the whole state.   He offered to print them off                                                               
for the committee and indicated a  web link also allows people to                                                               
download  the  map  and  review  them on-line.    The  areas  are                                                               
numbered, depicting the number of  concessions in parenthesis and                                                               
showing the split between full and limited concessions.                                                                         
                                                                                                                                
MR. FOGELS directed attention to  slide 15, entitled, "Historical                                                               
Information."   This  slide indicates  the  progression over  the                                                               
years, including  what was proposed  in the 2009 white  paper, in                                                               
last year's proposal,  and the current proposal.   He offered his                                                               
belief  that  each version  has  considered  public comments  and                                                               
industry comments and program has  been adjusted accordingly.  He                                                               
said the DNR  feels that the current framework  is "pretty close"                                                               
although  he imagined  some  adjustments will  still  need to  be                                                               
made.    However,  given  the   legal  framework  that  DNR  must                                                               
currently operate under  and the framework of  the Alaska Supreme                                                               
Court's  decision, it  is not  likely that  too many  significant                                                               
modifications will be made.                                                                                                     
                                                                                                                                
MR. FOGELS  briefly discussed the current  and required statutory                                                               
authority [slide 16].  He  said given the current authority under                                                               
AS 38.05.020, AS  38.05.035, and AS 38.05.850,  the Department of                                                               
Law believes  the DNR has  the authority to develop  the program.                                                               
This bill  will help  to clarify  the GCP  program and  allow for                                                               
additional debate and discussion before the legislature.                                                                        
                                                                                                                                
1:25:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  asked for  further explanation  on the                                                               
historical  information.   She asked  for  clarification on  full                                                               
assistant guide concessions.                                                                                                    
                                                                                                                                
MR.  FOGELS   replied  the  DNR   has  two  different   kinds  of                                                               
concessions, which are  full and limited concessions.   Under the                                                               
proposal, each guide will be allowed  to have a certain number of                                                               
assistant guides.   As you can see the number  has increased from                                                               
the  2012 figures  [slide  15].   The lead  guide  can have  more                                                               
assistant guides, which  allows him/her to take  out more clients                                                               
into  the  field.   Thus  the  greater  the number  of  assistant                                                               
guides, the more clients that can  be served.  Therefore, the DNR                                                               
felt  strongly that  the  number of  assistant  guides should  be                                                               
capped; otherwise, the  effect is to not cap the  level of guided                                                               
use in an area.                                                                                                                 
                                                                                                                                
1:26:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  asked for  the number  of camps  served by                                                               
guides in each area as compared to the current use.                                                                             
                                                                                                                                
MR. FOGELS  responded that under  the proposal, a  guide assigned                                                               
three full  concessions can have  six assistant guides  for each,                                                               
or a total of 18 assistant  guides.  Theoretically, the number of                                                               
camps or  clients served  would depend  on the  guiding operation                                                               
but the proposal outlines the total  workforce for the area.  The                                                               
current guide areas don't mesh with  the proposed GCP areas so it                                                               
is more  difficult to estimate  the number  of clients.   Some of                                                               
these problem areas have more  than three guides, with some areas                                                               
having as  many as  twenty guides.   He  offered his  belief that                                                               
this proposal  would reduce the  hunting pressure in some  of the                                                               
well-used areas.                                                                                                                
                                                                                                                                
1:28:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  related a  scenario  in  which 20  guides                                                               
worked.  He asked whether this proposal would allow 18 camps.                                                                   
                                                                                                                                
MR. FOGELS  responded that  it's important to  keep in  mind that                                                               
while there may be 20 guides in  an area, each will have a number                                                               
of assistant  guides, which would  mean that more than  20 guides                                                               
could  work  in  an  area.   However,  currently  the  number  of                                                               
assistant guides is not restricted for an area.                                                                                 
                                                                                                                                
1:29:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  said  he  would like  the  department  to                                                               
provide an  estimate on the  number of camps  currently operating                                                               
in  order to  compare it  to the  number of  camps that  would be                                                               
permitted under the proposal.                                                                                                   
                                                                                                                                
CO-CHAIR  SADDLER asked  who requested  the  number of  assistant                                                               
guides  to increase  from  three  to the  six  allowed under  the                                                               
current proposal.                                                                                                               
                                                                                                                                
MR. FOGELS replied  that DNR had proposed  three assistant guides                                                               
in its 2012 proposal, but  received substantial comments from the                                                               
industry urging  the department to  allow more  assistant guides.                                                               
In fact,  a strong contingent of  guides did not want  any limits                                                               
on the number of assistant guides.   While the DNR and ADF&G felt                                                               
strongly that some cap was  necessary, the DNR agreed to increase                                                               
the cap based on comments to the 2012 proposal.                                                                                 
                                                                                                                                
1:30:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON asked whether  the department would work                                                               
with the ADF&G to adjust "take" based on over utilization.                                                                      
                                                                                                                                
MR. FOGELS  answered yes; DNR  would be able to  conduct periodic                                                               
evaluation of  the program to see  how it is working  in terms of                                                               
fees  or  guides per  area.    He  emphasized  the DNR  plans  on                                                               
periodic evaluation and will adjust  the "take" if necessary.  He                                                               
reminded members that guided hunting  is not the only pressure on                                                               
an area and the BOG also manages the public hunts.                                                                              
                                                                                                                                
1:31:49 PM                                                                                                                    
                                                                                                                                
MR.  FLEENER, Deputy  Commissioner, Office  of the  Commissioner,                                                               
Alaska Department  of Fish &  Game (ADF&G), added that  the ADF&G                                                               
would   still   have   management  responsibilities   to   ensure                                                               
overharvest of  wildlife does not  occur.  Additionally,  the BOG                                                               
has  similar  responsibilities.    He  explained  that  when  the                                                               
department  notices  an impact  on  wildlife  resources, it  will                                                               
reduce harvest opportunities, as well.                                                                                          
                                                                                                                                
1:32:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON asked whether  the department has enough                                                               
biologists in  the field to  monitor activities.   She understood                                                               
the legislature has cut funding for positions.                                                                                  
                                                                                                                                
MR.  FOGELS  answered that  the  fees  for  the GCP  program  are                                                               
designed to fund  the staff for the program.   He understood that                                                               
approximately 11 DNR staff and one  or two staff from ADF&G would                                                               
manage   the  program.     He   anticipated  some   on-the-ground                                                               
enforcement will be  covered by these fees.   Additionally, other                                                               
ADF&G staff will be  doing field work, too.  He  said the hope is                                                               
that this program will be self-funding and self-sufficient.                                                                     
                                                                                                                                
1:33:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON said it  seems as though more guides and                                                               
more  assistant  guides  in  the program  would  result  in  more                                                               
funding  to cover  staff necessary  for the  program.   She asked                                                               
whether  there  are  any  checks  and  balances  to  prevent  the                                                               
possibility  of allowing  too  many guides  in  order to  sustain                                                               
program funding.                                                                                                                
                                                                                                                                
MR. FOGELS  answered that  the GCP program  has been  designed to                                                               
spread the guide concessions throughout  the state based on where                                                               
the guiding  activity and  game populations  exist.   Every guide                                                               
area will have  between 1-3 full concessions, he said.   The cost                                                               
has been designed based on the  DNR's best estimate on the number                                                               
of guides.   As the system changes, the regulations  will need to                                                               
be changed, which will also require public involvement.                                                                         
                                                                                                                                
1:35:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  returned to  the number of  assistant guides                                                               
allowed.  He recalled that originally  the white paper was set by                                                               
an operations  plan.  He  asked whether  the DNR planned  to have                                                               
someone  submit a  plan and  if the  department would  approve or                                                               
disapprove the number of guides.                                                                                                
                                                                                                                                
MR. FOGELS answered that is correct.   He explained the number of                                                               
assistant  guides would  have been  based  on a  proposal by  the                                                               
guides.                                                                                                                         
                                                                                                                                
1:36:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  referred to an  earlier map [slide 13].   He                                                               
asked  whether the  map was  a  1974 map  or if  it was  prepared                                                               
recently.                                                                                                                       
                                                                                                                                
MR.  FOGELS  answered  the map  was  recently  developed  through                                                               
substantial work  by ADF&G and  DNR, as  well as by  both boards.                                                               
In  further response  to Representative  Tuck, he  agreed it  was                                                               
created  in anticipation  for the  framework  document issued  in                                                               
January, which is contained in HB 158.                                                                                          
                                                                                                                                
1:37:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  for  the regulatory  process.   For                                                               
instance,  the  ADF&G found  too  many  bears were  being  taken,                                                               
whether the DNR would limit the number of assistant guides.                                                                     
                                                                                                                                
MR. FLEENER answered that question  is best answered by the ADF&G                                                               
and the  BOG.  He did  not envision that DNR  would review annual                                                               
program  changes  because  it  would  be  impossible  to  do  so.                                                               
Instead, the restrictions would clearly  come from ADF&G and BOG.                                                               
He suggested  that the DNR  would work in conjunction  with ADF&G                                                               
and  the BOG.    This  could result  in  changes  to draw  hunts,                                                               
general season  hunts, or by  restricting seasons and  bag limits                                                               
to address declining wildlife populations.                                                                                      
                                                                                                                                
1:39:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  asked  how   that  would  relate  to  the                                                               
restricted guide area concessions.                                                                                              
                                                                                                                                
MR.   FLEENER  offered   to  discuss   this  later   on  in   the                                                               
presentation.                                                                                                                   
                                                                                                                                
1:39:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR recalled in  1973 the legislature created the                                                               
Guide License Control Board.  She  asked whether the BGCSB is the                                                               
same board.                                                                                                                     
                                                                                                                                
MR. FOGELS answered  no; that the Guide License  Control Board no                                                               
longer exists.  He deferred to the BGCSB to provide the history.                                                                
                                                                                                                                
CO-CHAIR FEIGE  pointed out there was  a gap in time  between the                                                               
end of the  guide license control board and the  beginning of the                                                               
BGCSB.                                                                                                                          
                                                                                                                                
1:40:51 PM                                                                                                                    
                                                                                                                                
KELLY  VREM,  Master  Guide  102;   Chair,  Big  Game  Commercial                                                               
Services Board (BGCSB),  stated the guide board  was sunsetted in                                                               
the 1970s and  another board was instituted  and later sunsetted.                                                               
He offered  his belief  this is  the third  version of  the guide                                                               
licensing  board.   He deferred  to Paul  Johnson, the  immediate                                                               
past chairman of the BGCSB to answer.                                                                                           
                                                                                                                                
1:41:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  referred to  the boundaries of  the proposed                                                               
map and asked whether these  boundaries match the BOG boundaries,                                                               
in terms of allocation management.                                                                                              
                                                                                                                                
MR.  FLEENER   responded  that  these   maps  overlap   the  game                                                               
management units (GMU)  very well.  He said  the sub-units follow                                                               
those lines pretty well, too.                                                                                                   
                                                                                                                                
1:42:11 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER  referred  to  slide  14  in  members'  packets                                                               
entitled, "GCA  Map Close-up."   He asked what the  small squares                                                               
refer to since he cannot read the legend due to the print size                                                                  
                                                                                                                                
MR. FOGELS  answered he thinks  Co-Chair Saddler is  referring to                                                               
the  numbers in  brackets.   For example,  14-04 has  three total                                                               
concessions,  of those,  two would  be full  concessions and  one                                                               
would be a limited concession.                                                                                                  
                                                                                                                                
1:42:45 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER referred  to GCA  map  14-02 and  asked him  to                                                               
identify the full concessions and the limited concessions.                                                                      
                                                                                                                                
MR.  FOGELS answered  that  the concessions  will  only apply  to                                                               
state lands,  which are shaded  blue on the  map.  He  added that                                                               
the guides would be able to operate anywhere in the area.                                                                       
                                                                                                                                
1:43:35 PM                                                                                                                    
                                                                                                                                
MR. FOGELS directed attention to  slide 17, entitled, "Timeline,"                                                               
which  refers to  the framework  document prior  to HB  158 being                                                               
introduced.   Essentially, the timeline  begins with  the January                                                               
23-February  28,  2013  public  comment  period.    The  timeline                                                               
assumed regulations would  be developed in the  Spring and Summer                                                               
2013, and staff  would be hired in  the Fall 2013.   Next fall, a                                                               
call for applications would occur,  which he anticipated would be                                                               
approximately  1,000 applications.    The  applications would  be                                                               
scored  throughout  the Summer  2014  and  the DNR  would  notify                                                               
guides  approximately in  August-September  2014  of areas,  with                                                               
guide concession areas being effective  January 1, 2015.  However                                                               
this timeline may change based on HB 158, he said.                                                                              
                                                                                                                                
1:44:43 PM                                                                                                                    
                                                                                                                                
MR. FLEENER  reported that ADF&G  has worked closely with  DNR on                                                               
this for  about three years.   He named reasons for  the proposal                                                               
including impacts  to wildlife, reducing  overcrowding, improving                                                               
stewardship,  improving hunter  success  and satisfaction  rates,                                                               
and responding to  requests by the BGCSB and BOG  to make changes                                                               
to improve the overall system.   He mentioned the need for action                                                               
relates  to  increasing  problems,   which  includes  impacts  to                                                               
wildlife  populations, user  conflicts due  to overcrowding,  and                                                               
declining stewardship [slide 18].                                                                                               
                                                                                                                                
MR.  FLEENER  directed attention  to  slide  19, entitled,  "Case                                                               
Study -  Chugach Sheep."   This  example uses  the Dall  sheep in                                                               
Game  Management  Unit  (GMU)  14A since  some  of  the  greatest                                                               
conflicts in terms  of guide overcrowding relates  to Dall sheep.                                                               
He prefaced  his comments  by stating  the department  really has                                                               
not  identified any  population-wide negative  impacts from  user                                                               
conflicts  associated with  unregulated  guiding.   However,  the                                                               
ADF&G  has  identified  a number  of  areas  experiencing  severe                                                               
impacts to certain age classes.   For example, referring to slide                                                               
19, one  segment of  the Chugach Dall  sheep population  that has                                                               
been impacted is the number of  full-curl rams.  That part of the                                                               
population has experienced a significant  decrease.  The areas in                                                               
the  state with  the largest  impact  include GMU  13A, which  is                                                               
Glennallen and west,  GMU 13D, Glennallen and south,  and GMU 14A                                                               
which is  the Palmer-Wasilla area.   Additionally, the  ADF&G has                                                               
growing concerns about GMU 19C,  since the department has noticed                                                               
some  increases; however,  he anticipated  that the  problem will                                                               
worsen.                                                                                                                         
                                                                                                                                
1:47:46 PM                                                                                                                    
                                                                                                                                
MR. FLEENER, returning  to slide 19, pointed  out the overharvest                                                               
of full-curl rams and overcrowding.   The ADF&G went to a drawing                                                               
hunt in  2008 and the bar  graph significantly dropped.   He also                                                               
pointed  out the  significant  decrease  in hunter  opportunities                                                               
from  2007-2008.   The  numbers on  the left  side  of the  graph                                                               
indicates the  number of hunters  or permits awarded  whereas the                                                               
numbers  on the  right  side  of the  graph  indicate the  actual                                                               
number of  harvested rams.   The lines shown in  orange represent                                                               
resident harvest  while the green  lines depict  the non-resident                                                               
harvest.  In  essence, the slide shows a  significant decrease in                                                               
overall   hunter   opportunities.     He   pointed   out   severe                                                               
restrictions are  sometimes necessary  to resolve these  types of                                                               
conflicts.  For example, the  ADF&G and board instituted a permit                                                               
hunt in  2008 to  protect the segment  of wildlife  population in                                                               
trouble.                                                                                                                        
                                                                                                                                
MR. FLEENER said  also of importance to note is  the crossover of                                                               
success rates depicted.  He pointed out that beginning in 2004-                                                                 
2005  the  orange  line,  or resident  success  rate,  starts  to                                                               
decline and continued  to decline until 2010.  In  2002, the non-                                                               
resident  success  rate  began  to increase  [until  2005].    Of                                                               
course, resident hunters would be  vocal about their inability to                                                               
successfully harvest rams.  In  fact, the department continues to                                                               
hear about  overcrowding and resident  hunters not being  able to                                                               
meet  their needs.   According  to regional  wildlife staff,  the                                                               
declining   resident   participation   and  success   rates   are                                                               
attributed to overcrowding and conflicts on the ground.                                                                         
                                                                                                                                
1:49:57 PM                                                                                                                    
                                                                                                                                
MR. FLEENER  indicated it is easy  to see that ADF&G  was able to                                                               
resolve  the  problems  of  overharvest  and  overcrowding,  with                                                               
resident  success stabilized  and  increasing  beginning in  2008                                                               
through 2012.   Certainly, this  is logical given that  far fewer                                                               
hunters are on  the ground in drawing hunts so  the success rates                                                               
will increase and hunter satisfaction correspondingly increases.                                                                
                                                                                                                                
MR. FLEENER said the problem with severe limitations on non-                                                                    
resident opportunity  is that  it has  the potential  to decrease                                                               
state revenue  due to lost license  and tag fees, as  well as the                                                               
dollars  hunters  spend.   Moreover  it  makes it  difficult  for                                                               
hunting  guides  to  have  effective  business  planning  due  to                                                               
restrictions  on permits  and numerous  guides  operating in  the                                                               
same  area.   He  reiterated  that  the department  doesn't  only                                                               
consider dollars  and cents,  but the  committee should  be aware                                                               
the potential  for decreased revenue  exists if the ADF&G  or the                                                               
BOG  goes  to  very  restricted numbers  of  permits  instead  of                                                               
providing ample opportunity to hunters.                                                                                         
                                                                                                                                
MR. FLEENER  surmised that  the general  amount of  money brought                                                               
into the state  by guided hunters is  $12,000-$15,000 on average.                                                               
He anticipated  that this  topic will be  covered in  more detail                                                               
during testimony.                                                                                                               
                                                                                                                                
1:51:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON asked how  many licensed guides are non-                                                               
residents and how many licensed guides are residents.                                                                           
                                                                                                                                
1:52:22 PM                                                                                                                    
                                                                                                                                
MR.  PAUL JOHNSON,  Registered Guide  463,  noting he  previously                                                               
served on the  BGCSB, stated that about 15 percent  of the guides                                                               
are  non-resident guides.   He  said  that under  the common  use                                                               
clause  [in the  Alaska Constitution]  the state  cannot restrict                                                               
non-residents from  obtaining professional licenses.   In further                                                               
response to Representative Wilson,  he said that assistant guides                                                               
figures are higher, but he was  uncertain of the figures.  Still,                                                               
most of the assistant guides are residents, he said.                                                                            
                                                                                                                                
1:53:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  referred to slide 19  entitled "Case Study                                                               
- Chugach Sheep."  He asked  whether the purpose of the draw hunt                                                               
was to reverse the non-resident  take with non-residents taking a                                                               
greater share of the harvest.                                                                                                   
                                                                                                                                
MR. FLEENER answered  no; that is not the purpose  of the program                                                               
at all.   What he attempted to say is  that implementing a permit                                                               
was a last-ditch effort to  stabilize a decreasing segment of the                                                               
population  favored  for  hunting.   The  graph  illustrates  the                                                               
success  rate.   He referred  to  the 2008-2012  period in  which                                                               
animals  taken by  non-residents  were limited  to  two or  three                                                               
animals and  resident opportunity  highest being at  12 harvested                                                               
rams, which was less limited.   The department and BOG's goal has                                                               
been  to stabilize  the population  and  prevent the  8-year-old,                                                               
full-curl  ram population  from decreasing  any further  and also                                                               
increase the hunter success rates and overall satisfaction.                                                                     
                                                                                                                                
TED SPRAKER,  Chair, Board  of Game, stated  he would  cover this                                                               
topic during his presentation.                                                                                                  
                                                                                                                                
1:55:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON expressed  an interest  in how  the Alaska                                                               
GCP  program  would have  affected  the  ram harvest  and  hunter                                                               
numbers in  GMU 14A if it  had been implemented in  2008, instead                                                               
of  the draw  hunt, as  depicted on  the graph.   He  wondered if                                                               
concession guides  would take  a higher  percentage of  the rams.                                                               
It seems if  the problem is a biological problem,  it is probably                                                               
a different  solution, given  that residents hunt,  as well.   In                                                               
essence, he asked what effect  will the concession program versus                                                               
[draw hunt  policy have  with respect to]  the resident  and non-                                                               
resident take.                                                                                                                  
                                                                                                                                
MR. FLEENER  answered that from  the ADF&G's perspective  the end                                                               
result is to attain viable  wildlife populations that can sustain                                                               
harvests over the  long term.  He indicated  his primary interest                                                               
is to meet the needs  of Alaska residents, with subsistence being                                                               
first, and  to expand  the opportunity  to others  as harvestable                                                               
surplus  is available.   He  predicted  that the  GCP would  have                                                               
worked better since it would not  have necessitated the BOG to be                                                               
so  restrictive  [in  2008  by  instituting a  draw  hunt].    He                                                               
suggested the  [draw hunts]  make it much  tougher for  guides to                                                               
have a  business plan.   For example, if  a small number  of non-                                                               
resident permits  are available  but the number  of guides  in an                                                               
area is not  restricted, it could mean 25-30  guides and numerous                                                               
assistant guides are  operating in an area.   Therefore, it makes                                                               
it  tough  for  guides  to  develop their  business  plans.    He                                                               
anticipated the  guide representatives will discuss  this in more                                                               
detail;  however he  has heard  from guides  that when  hunts are                                                               
restricted to only a few  permits, guides don't know whether they                                                               
will be selected, which adversely affects their business plans.                                                                 
                                                                                                                                
1:57:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  understood the aforementioned  chart depicts                                                               
the number  of resident and  non-resident hunters.   However, the                                                               
total population  of rams is  not indicated.  He  understood that                                                               
in 2007, the ADF&G put in  place [draw hunt] measures to increase                                                               
the  population  densities  of  8-year old  rams.    The  measure                                                               
resulted in the number of  resident/non-resident permit hunts and                                                               
the harvested  amounts.   He understood Mr.  Fleener to  say that                                                               
wasn't a  good thing, or that  it could have been  prevented if a                                                               
concession plan  had been in place.   He asked whether  the [draw                                                               
hunt] was effective in increasing the ram population.                                                                           
                                                                                                                                
MR. FLEENER answered  absolutely.  He said the  success rates for                                                               
residents  increased;  however,  the  harvest  opportunities  for                                                               
residents  and non-residents  decreased since  far fewer  hunters                                                               
were in the  field.  From the perspective of  managing the single                                                               
age-class,  the draw  hunt was  successful.   He deferred  to Mr.                                                               
Spraker to elaborate.                                                                                                           
                                                                                                                                
1:59:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK pointed  out that the graph  doesn't show the                                                               
outcome, but  the ADF&G  "knows" [it  positively affected  the 8-                                                               
year-old ram population].                                                                                                       
                                                                                                                                
MR. FLEENER answered that is correct.                                                                                           
                                                                                                                                
1:59:43 PM                                                                                                                    
                                                                                                                                
MR. SPRAKER  offered to  weigh in since  the comments  have moved                                                               
into the BOG activities.  He  reminded members the BOG must first                                                               
manage on  a sustained yield  basis.  Therefore,  conservation is                                                               
the BOG's number one priority.   Next, the process is a step-down                                                               
process.    As  Representative  Tuck alluded  to,  there  is  the                                                               
"building  back" of  a  population, but  the  [permit hunt]  also                                                               
allows for  a quality  hunt.   While the  BOG doesn't  attempt to                                                               
quantify quality,  the BOG is  very cognizant of  overcrowding in                                                               
areas.                                                                                                                          
                                                                                                                                
MR. SPRAKER  explained the  process the BOG  took to  address the                                                               
Chugach ram  issue.  First,  the BOG considered  the conservation                                                               
issue.   As Mr. Fleener mentioned,  the number of legal  rams was                                                               
decreasing.     Second,  the  BOG  considered   overcrowding  and                                                               
competition in the  hunts.  He mentioned a prior  article he read                                                               
by Representative Mia Costello [not  in members' packets] that he                                                               
thought  hit on  a  number  of points  the  board must  consider.                                                               
Again,  he  characterized  the  process  as  being  a  "step-down                                                               
process," with  conservation considered  first and  crowded hunts                                                               
considered next.                                                                                                                
                                                                                                                                
2:01:17 PM                                                                                                                    
                                                                                                                                
MR. FLEENER continued his presentation.   He reviewed the harvest                                                               
success rate  in GMU 13D  and 14A [[slide  20].  The  harvest for                                                               
GMU 13D Tazeast dropped by 59  percent.  This slide indicates the                                                               
actual numbers of hunters and harvest.   In 2003, GMU 13D Tazeast                                                               
had  88 hunters  with  27  sheep harvested.    The resident  hunt                                                               
success rate  was 22 percent,  and the non-resident  success rate                                                               
was 65  percent.   By 2008, draw  permit hunts  were implemented,                                                               
which resulted in  43 hunters, 11 harvested sheep,  or 26 percent                                                               
resident  hunt  success  rate  as compared  to  79  percent  non-                                                               
resident  success rate.   This  depicts the  overall opportunity,                                                               
which  decreases by  more  than 50  percent  when the  department                                                               
switched  from a  general hunt  to a  draw permit  hunt.   On the                                                               
whole, these figures show a lot  of hunters, with very low hunter                                                               
success  rates,   and  a  reduction   of  50-80   percent  hunter                                                               
opportunity by  going to the  draw permit.  This  slide indicates                                                               
that when the  draw program was implemented,  it severely limited                                                               
hunter  opportunity,  which  has  a greater  negative  impact  on                                                               
resident   hunters;  however,   he   offered   his  belief   that                                                               
implementing the  permit hunt  did reestablish  healthy full-curl                                                               
ram populations and improved success rates.                                                                                     
                                                                                                                                
2:04:04 PM                                                                                                                    
                                                                                                                                
MR. FLEENER tuned  to slide 21, entitled, "ADF&G -  An example of                                                               
GCP  benefits."    He  read,  as  follows  [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
        · Unit 8, Kodiak) is by far ADF&G's most active area for                                                                
          guides in Region II.                                                                                                  
                                                                                                                                
        · Within the Kodiak archipelago there are 30 guide use                                                                  
          areas, about 6 of which have significant state lands                                                                  
          within them.                                                                                                          
                                                                                                                                
        · Although there are rarely guide-resident conflicts in                                                                 
          GMU 8,  passage of the proposed  guide concession would                                                               
          enhance our  ability to work cooperatively  with guides                                                               
          to assure residents have fair treatment.                                                                              
                                                                                                                                
        · If history is a good teacher, we can learn from the                                                                   
          Kodiak NWR  exclusive guide areas  that the  guides who                                                               
          are awarded  these concessions  are better  stewards of                                                               
          the resources, better  partners to let us  know what is                                                               
          going on  within their areas,  and are more  engaged in                                                               
          the public process.                                                                                                   
                                                                                                                                
        · The guides are also able to provide better services                                                                   
          for  their clients  because they  are  more willing  to                                                               
          invest   in  infrastructure   (e.g.   cabins  or   tent                                                               
          platforms) and they have a  better ability to advertise                                                               
          and provide hunts in the future.                                                                                      
                                                                                                                                
        · It would be an asset to state resources to implement a                                                                
          fair guide concession program.                                                                                        
                                                                                                                                
MR.  FLEENER said  the second  to the  last paragraph  summarizes                                                               
that guides  can have a  better ability to advertise  and provide                                                               
future hunts  if they  are operating  in an area.   Thus  a small                                                               
group  of guides  with a  long-term business  plan can  provide a                                                               
better quality  hunt for clients  as compared to  numerous guides                                                               
and assistant guides operating in  overcrowded areas in which ram                                                               
population issues have also developed.                                                                                          
                                                                                                                                
2:06:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE asked  whether  the number  of  game animals  has                                                               
increased or decreased statewide since  the policy changes in the                                                               
1990s.                                                                                                                          
                                                                                                                                
MR. FLEENER  answered that  it depends on  the species  and which                                                               
general  population is  under consideration.   For  example, some                                                               
caribou herds  have increased  and some have  decreased.   In his                                                               
data review, he  did not see any dramatic  declines that appeared                                                               
related to sheep.   He deferred to Mr. Spraker  to elaborate, due                                                               
to his  long-term board experience.   He said the  department has                                                               
done a  good job increasing  moose numbers  in some parts  of the                                                               
state; however,  Alaska is a big  state and game management  is a                                                               
very complex question.                                                                                                          
                                                                                                                                
2:08:25 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE  pointed out federal  lands within the  state have                                                               
concessions.   He  asked  for  the relative  health  of the  game                                                               
populations in those areas compared to state areas.                                                                             
                                                                                                                                
MR.  FLEENER responded  that  he could  speak  more about  hunter                                                               
satisfaction,  in general,  rather  than the  relative health  of                                                               
game populations  on federal  lands.   From his  discussions with                                                               
DNR, he  has heard  that many  guides prefer  to hunt  on federal                                                               
lands  due to  less crowded  hunting, good  wildlife populations,                                                               
and the target  age class of animals typically  being better than                                                               
on state land.                                                                                                                  
                                                                                                                                
2:09:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK,  referring to  the six assistant  guides per                                                               
concession  [proposed   GCP  program],  assumed  that   the  most                                                               
qualified master  guides would  be selected  prior to  taking new                                                               
entrants.   He  asked  whether  the guides  could  be located  in                                                               
Montana while the six assistant guides were working in Alaska.                                                                  
                                                                                                                                
MR. FLEENER was unsure, but recalled  that the hunter must have a                                                               
registered  guide with  him  while out  hunting,  but perhaps  it                                                               
could be  the assistant guide.   He admitted  this is an  area in                                                               
which he is unfamiliar.                                                                                                         
                                                                                                                                
CO-CHAIR   FEIGE   noted   some  statutes   were   changed   last                                                               
legislature.                                                                                                                    
                                                                                                                                
MR.  JOHNSON  answered  that  the process  is  still  an  ongoing                                                               
process.     In   response  to   Co-Chair  Feige's   question  on                                                               
supervision levels, the provision is  not in HB 158; however, the                                                               
guide must  in the  state.  This  requirement was  not previously                                                               
required; however,  the supervision level will  be increased once                                                               
regulations are adopted.                                                                                                        
                                                                                                                                
2:11:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR asked whether the  operations plan used to be                                                               
part of  the proposal, but is  now limited to the  scoring system                                                               
that will be used.                                                                                                              
                                                                                                                                
MR.  FLEENER  answered  that  the guides  must  still  submit  an                                                               
operations plan as part of their application package.                                                                           
                                                                                                                                
2:12:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR referred to  the licensure system for guides,                                                               
including  assistant   guides,  master  guides,   and  registered                                                               
guides.   She  asked  whether the  criteria  will be  reevaluated                                                               
through the regulatory process if HB 158 passes.                                                                                
                                                                                                                                
MR.  FOGELS  said  he  believed   so.    He  suggested  that  the                                                               
regulatory process  will be  driven by the  bill that  is passed.                                                               
The  department will  receive guidance  on the  program and  will                                                               
adjust the regulations accordingly.                                                                                             
                                                                                                                                
2:13:09 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER inquired  why the  DNR is  tackling this  issue                                                               
instead of the ADF&G and the BOG.                                                                                               
                                                                                                                                
MR. FOGELS answered that the  1988 Alaska Supreme Court decision,                                                               
[Oswichek],  basically threw  out  the old  guide program,  which                                                             
specifically   pointed  to   DNR's  land   concession  and   land                                                               
permitting authority to implement the areas.                                                                                    
                                                                                                                                
MR. FLEENER  concurred.   However, the  ADF&G has  worked closely                                                               
with  DNR and  believes the  new  program will  help resolve  the                                                               
problem.    While  there  are  guides who  do  not  support  this                                                               
solution, he  has heard from a  number of guides who  support the                                                               
GCP's concession program.  Many  guides are asking for regulation                                                               
of their  own program, due to  impacts on the resource,  which he                                                               
characterized as  good stewardship.   He offered his  belief that                                                               
the ADF&G is trying to be responsive to that request.                                                                           
                                                                                                                                
2:15:24 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SADDLER asked  whether  not having  this program  would                                                               
require the BOG to have more draw permits.                                                                                      
                                                                                                                                
MR. FLEENER offered his belief that is correct.                                                                                 
                                                                                                                                
MR. FOGELS  added there are a  number of ways the  issue could be                                                               
resolved.  In fact, the  GCP program represents only one solution                                                               
to the  issue, so the debate  is whether this is  the appropriate                                                               
solution.  He pointed out  the full-curl ram population addressed                                                               
in slide 19,  which required the BOG to take  radical measures to                                                               
address.   He suggested Mr.  Spraker will speak to  the downsides                                                               
of that approach.                                                                                                               
                                                                                                                                
2:16:41 PM                                                                                                                    
                                                                                                                                
MR.  SPRAKER  explained  the  BOG   considers  DNR  to  have  the                                                               
authority to establish  the leasing program and set  up the guide                                                               
control use  areas, but  the ADF&G will  continue to  provide the                                                               
BOG  information to  make management  decisions  with respect  to                                                               
wildlife conservation.   In  essence, the DNR,  the ADF&G,  & the                                                               
BOG work  in unison,  but the BOG  has the  final decision-making                                                               
authority in terms of whether  a more restrictive harvest program                                                               
is adopted.                                                                                                                     
                                                                                                                                
2:17:21 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE understood  the guides would be  spread out across                                                               
the land  by DNR, but  the program  would not interfere  with the                                                               
ADF&G's  or  the BOG's  ability  to  manage game  populations  by                                                               
setting bag limits and seasons.                                                                                                 
                                                                                                                                
MR. SPRAKER answered yes.                                                                                                       
                                                                                                                                
2:17:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER echoed that as  the [ADF&G, & the BOG] considers                                                               
the  health of  the  resource, the  distribution  of the  guiding                                                               
effort would be one factor considered.                                                                                          
                                                                                                                                
[MR. SPRAKER nodded yes.]                                                                                                       
                                                                                                                                
[MR. FLEENER nodded yes.]                                                                                                       
                                                                                                                                
2:18:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  said it  seemed  like  the state  has  a                                                               
contract with the  guides.  He asked what the  process will be if                                                               
the  state's  contract  with  the  guides  is  broken  when  more                                                               
restrictive measures are put in place.                                                                                          
                                                                                                                                
MR.  FLEENER did  not  think  such changes  would  be breaking  a                                                               
contract because the guide concession  program does not guarantee                                                               
access or a successful hunt.   Instead, it provides opportunities                                                               
for guides  to take hunters  out to use the  land.  He  said that                                                               
aspect [land  use] would  always be  available through  the guide                                                               
concession program.  Additionally, the  ADF&G and BOG must always                                                               
manage the wildlife  populations, which will be  in the forefront                                                               
when the  department and the  board make decisions on  whether or                                                               
not a guide-concession program will exist.                                                                                      
                                                                                                                                
2:19:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON related  a scenario such that  in year one                                                               
hunts are allowed, but in year  two the hunts are restricted.  He                                                               
asked  whether the  state is  legally responsible  for a  guide's                                                               
lost revenue if  the state finds it must reduce  the terms of the                                                               
guide's  five-year  contracts.   He  expressed  concern over  the                                                               
liability.                                                                                                                      
                                                                                                                                
MR. FLEENER responded  that did not think the state  would be "on                                                               
the hook."  He  said that hunting is a gamble  due to weather and                                                               
game  populations.   He  deferred  to others  to  provide a  more                                                               
definitive legal viewpoint.                                                                                                     
                                                                                                                                
2:21:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON referred to the  chart on slide 20 for GMU                                                               
13D  that indicated  a 90  percent success  rate on  guided sheep                                                               
hunts  and 70  percent success  rate  for non-guided  hunts.   He                                                               
characterized  this statistic  meant hunters  using a  guide were                                                               
nearly guaranteed a successful sheep hunt.                                                                                      
                                                                                                                                
MR. FLEENER  answered yes; that  hunting with  a guide is  a good                                                               
way to be successful.                                                                                                           
                                                                                                                                
2:22:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  related he  has some  questions regarding                                                               
contracts  that  are  better  answered  by  the  House  Judiciary                                                               
Committee.  He recalled earlier  testimony that the permit holder                                                               
for the concession  would be in the area or  in an adjacent area.                                                               
He asked whether  the guide in question would have  two areas and                                                               
if a guide can have more than one area.                                                                                         
                                                                                                                                
2:22:53 PM                                                                                                                    
                                                                                                                                
CLARK  COX,  Natural  Resources Manager,  Department  of  Natural                                                               
Resources  (DNR), answered  that  under the  proposal guides  can                                                               
apply for and  hold up to three guide areas,  which is similar to                                                               
the current system.                                                                                                             
                                                                                                                                
2:23:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON asked whether  the areas would be adjacent                                                               
area.                                                                                                                           
                                                                                                                                
MR.  COX answered  that  the guide  use areas  don't  need to  be                                                               
adjacent areas.                                                                                                                 
                                                                                                                                
2:23:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  asked whether the  guide could be  in one                                                               
part of  the state with  clients hunting  in another part  of the                                                               
state.                                                                                                                          
                                                                                                                                
MR. COX pointed out that hunting seasons also vary.                                                                             
                                                                                                                                
REPRESENTATIVE JOHNSON asked  whether a guide could  hold a moose                                                               
permit  in three  different  areas.   In  further  response to  a                                                               
question, he  agreed a guide could  hold a moose, sheep,  or bear                                                               
permit in three different areas.                                                                                                
                                                                                                                                
2:23:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON,  returning  to  the  Chugach  case  study                                                               
[statistics on  slide 19], noted  an increase in the  guided non-                                                               
resident  take,  which  he  said caused  concern  about  the  ram                                                               
population and led  to the BOG limiting hunting  through a permit                                                               
hunt.   He asked how many  guides and camps participated  in that                                                               
elevated harvest.   He  expressed his interest  that if  the same                                                               
number  of guides  and  hunters under  the  six assistant  guides                                                               
could hunt  under the proposed  program, it might not  change the                                                               
biological  makeup of  the rams.    While some  guides might  not                                                               
participate to  ensure the health of  the herd, it seemed  to him                                                               
the  non-residents certainly  affected  the population  dynamics.                                                               
He  requested  the  population  and guide  figures  at  the  next                                                               
meeting  so  he could  see  how  this  proposal would  solve  the                                                               
problem.                                                                                                                        
                                                                                                                                
MR.  SPRAKER  responded that  36-38  guides  operated during  the                                                               
aforementioned case  study, [slide 19].   He agreed that  was the                                                               
primary reason for  BOG action to limit hunters  by instituting a                                                               
draw hunt.   He  characterized the competition  [at the  time] as                                                               
being "fierce."                                                                                                                 
                                                                                                                                
2:27:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR asked  whether this bill would  be limited to                                                               
non-residents  who  are required  to  obtain  guide services  for                                                               
hunting brown bear,  Dall sheep, or mountain goats.   She further                                                               
asked whether  the proposal  would be  expanded to  include black                                                               
bear, moose, or caribou.                                                                                                        
                                                                                                                                
MR. COX answered  no; that while this bill  primarily pertains to                                                               
guided  clients  a resident  could  hire  a  guide and  would  be                                                               
subject  to the  same requirements.    In further  response to  a                                                               
question, he said  the requirements apply to  all guided species,                                                               
including moose, black bear, and caribou.                                                                                       
                                                                                                                                
2:28:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR asked whether  the concession is transferable                                                               
if a business would was sold during the five-year timeline.                                                                     
                                                                                                                                
MR. COX  answered that  the concession  is nontransferable  so if                                                               
someone chose  to leave in  year two or three,  the authorization                                                               
would be referred back to the  department.  He commented that the                                                               
DNR would maintain a reserve list  of people who had competed for                                                               
the  guide use  area.    In the  event  a  vacancy occurred,  the                                                               
concession would go to the next person on the list.                                                                             
                                                                                                                                
2:28:58 PM                                                                                                                    
                                                                                                                                
MR. SPRAKER  provided his background.   He  said he has  lived in                                                               
Alaska for  40 years and  has served on  the Board of  Game (BOG)                                                               
for  three  governors.   Currently,  he  said  he serves  as  the                                                               
chairman of  the BOG  and he  previously served  on the  Big Game                                                               
Commercial Services  Board (BGCSB) from  2004-2013.  He  asked to                                                               
briefly  discuss  challenges  the  BOG will  face  if  the  guide                                                               
concession program is  not implemented [slide 22].   He clarified                                                               
that  he  would not  be  reviewing  the  budgets or  the  program                                                               
configuration, but  would focus  on the  wildlife resources.   He                                                               
indicated the  BOG has  two major  concerns.   First, the  BOG is                                                               
concerned about  conservation of the state's  wildlife resources.                                                               
Second, the  BOG has concerns about  overcrowding and competition                                                               
between resident and  non-resident hunters.  Thus  he has written                                                               
three  letters to  the BGCSB  to support  limiting the  number of                                                               
guides and  their ability to move  around the state.   He offered                                                               
his  belief that  the current  system, which  does not  limit the                                                               
number of guides,  has resulted in fairly  heavy, locally limited                                                               
overharvest of game.                                                                                                            
                                                                                                                                
2:30:58 PM                                                                                                                    
                                                                                                                                
MR. SPRAKER  related that  at every BOG  meeting since  2003, new                                                               
proposals  have  requested  some  reduction of  harvest  by  non-                                                               
residents.   In the  past few years,  these proposals  focused on                                                               
sheep harvest,  primarily due to  competition and  overharvest of                                                               
legal rams for sheep hunting.   However, he has also noticed some                                                               
proposals have  spread to encompass  all big game,  with requests                                                               
for  some type  of reduction  on  non-resident take  for all  big                                                               
game.                                                                                                                           
                                                                                                                                
MR.  SPRAKER stated  that the  requests to  the BOG  come in  two                                                               
forms.    First, proponents  would  like  to eliminate  all  non-                                                               
resident  hunters.   He  characterized this  request  as being  a                                                               
common statement.   At the  very least, proponents would  like to                                                               
stagger  the opening  hunting season  dates to  give residents  a                                                               
five-to-seven  day  head  start before  non-residents  can  hunt.                                                               
Second,  in  the  next level  of  proposals,  proponents  suggest                                                               
limiting  non-residents  to   only  participate  through  drawing                                                               
permits.  These proposals typically  include an allocation, which                                                               
is typically  around 10 percent.   In fact, he  recently reviewed                                                               
all the  hunts and estimated  the effect  of reducing them  to 10                                                               
percent.   Such  action would  make a  huge difference,  he said.                                                               
While the  BOG does not  look at  the financial aspects  and only                                                               
considers conservation  aspects, it is  aware of the  impacts. In                                                               
conclusion,  he said  reducing non-resident  take  to 10  percent                                                               
would have  a significant impact  in terms of the  hunter dollars                                                               
coming  into the  state  since  fees for  licenses  and tags  are                                                               
designated to the ADF&G for game management.                                                                                    
                                                                                                                                
2:33:06 PM                                                                                                                    
                                                                                                                                
MR. SPRAKER elaborated  on the overcrowding issue.   For example,                                                               
GMU 13D and 14A, the Palmer  to Glennallen area, had 36-38 guides                                                               
operating  in it.   The  BOG convened  a "town  hall" meeting  to                                                               
discuss overcrowding,  which resulted in  a good discussion.   It                                                               
was  at this  meeting that  he learned  the financial  difficulty                                                               
guides experience  on planning  based on permit  hunts.   All but                                                               
one of  eight guides at  the town  hall meeting said  they'd "had                                                               
enough" since  the competition  is so great  that clients  have a                                                               
limited  opportunity for  success.   These guides  indicated they                                                               
would rather have  permit hunts since it would  raise the quality                                                               
of  the hunt,  the size  of the  ram would  increase, the  client                                                               
would have  more rams to  consider, and the conservation  will be                                                               
addressed.   However, the  main reason  these guides  supported a                                                               
permit hunt is to address the overcrowding issues.                                                                              
                                                                                                                                
2:34:30 PM                                                                                                                    
                                                                                                                                
MR.  SPRAKER pointed  out the  BOG  will also  consider GMU  20A,                                                               
south of  Fairbanks, the spring  of 2014.  He  said approximately                                                               
13 guides  are registered  for the  area, but  what he  has heard                                                               
from guides  is that the area  can only support about  a third of                                                               
that number in order to provide quality hunts.                                                                                  
                                                                                                                                
MR.  SPRAKER  explained  there is  a  difference  between  guides                                                               
competing with guides  or competition between residents.   From a                                                               
BOG  perspective and  a state's  rights perspective,  competition                                                               
with guides adversely affects residents  because residents have a                                                               
tough time competing with the guided  hunts.  He pointed out most                                                               
guides are well  equipped with large camps, wall  tents, a string                                                               
of horses,  aircraft, or other  enhancements since this  is their                                                               
business.    Therefore,  the  average hunter  has  a  tough  time                                                               
getting game in areas with substantial guide competition.                                                                       
                                                                                                                                
MR.  SPRAKER pointed  out GMU  19C, west  of the  Denali National                                                               
Park and Preserve,  is an area that  receives competition between                                                               
guides.   One guide said that  competition in this area  has been                                                               
building, primarily due  to actions the BOG took in  GMUs 14A and                                                               
13D,  which  likely pushed  some  of  the  guides into  GMU  19C.                                                               
Again, when  an area is fully  utilized, the areas of  access are                                                               
limited,  with a  finite  number  of areas  to  access the  sheep                                                               
areas.   Additionally,  guides spend  the whole  season at  their                                                               
camps so it limits the residents who can hunt in these areas.                                                                   
                                                                                                                                
2:36:47 PM                                                                                                                    
                                                                                                                                
MR. SPRAKER said the next BOG  meeting will be held in Kenai next                                                               
Friday.  He  said the BOG has 53 proposals  to consider, of which                                                               
nine proposals  address some  type of  competition, overcrowding,                                                               
or over  harvest issues.   He concluded that  substantial concern                                                               
exists between guides and resident hunters.                                                                                     
                                                                                                                                
MR. SPRAKER, in  summary, said that the BGCSB  licenses about 15-                                                               
20 new  registered guides annually,  but in the  board's opinion,                                                               
the  state  cannot  accommodate  that  level  of  growth  without                                                               
additional  hunting  restrictions.   He  predicted  that the  new                                                               
guides will  have difficulties competing with  established guides                                                               
in their  area, but these guides  will likely be able  to compete                                                               
with residents.   Unless additional  limits are imposed,  it will                                                               
spill down  to the residents and  their ability to take  game, he                                                               
predicted.                                                                                                                      
                                                                                                                                
2:38:15 PM                                                                                                                    
                                                                                                                                
MR. SPRAKER raised another concern,  which he referred to as "hot                                                               
spot" hunts.   He explained  that as  the BOG remedies  one area,                                                               
the  problem is  pushed to  another area.   He  characterized the                                                               
"hot  spot"  hunts  as  problem  that has  been  addressed  in  a                                                               
piecemeal manner  since fixing one  area pushes use  into another                                                               
area.   He  recommended some  sort of  a "global"  approach as  a                                                               
better means to consider hunter pressure.                                                                                       
                                                                                                                                
MR.  SPRAKER  concluded that  adopting  a  system that  addresses                                                               
overcrowding and  overuse will  result in  a more  stable guiding                                                               
system that will benefit the resident Alaskan hunters.                                                                          
                                                                                                                                
2:40:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HAWKER   commented  that  slide  23   states  the                                                               
proposal  will promote  multi-generation family  businesses.   He                                                               
expressed concern that this may  create an entitlement mentality.                                                               
He   wondered  whether   this   will   create  special   interest                                                               
legislation that would not withstand constitutional muster.                                                                     
                                                                                                                                
CO-CHAIR FEIGE  pointed out that  Mr. Spraker represents  the BOG                                                               
and not the ADF&G.                                                                                                              
                                                                                                                                
2:41:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   TUCK    expressed   an   interest    in   better                                                               
understanding the wildlife conservation  portion of the proposal.                                                               
He recalled reasons  for the changes included the  guides did not                                                               
want  to compete  and ram  sizes were  smaller.   It sounds  like                                                               
limiting  the number  of guides  in an  area would  help, but  he                                                               
wondered if  [the proposal]  would reduce  the number  of overall                                                               
hunts.   He  was uncertain  how the  wildlife conservation  would                                                               
occur under the proposed GCP.                                                                                                   
                                                                                                                                
MR. SPRAKER  answered that  he has identified  one of  the issues                                                               
the BOG has struggled to address.   He said the BOG does not look                                                               
at  whether there  are  too many  guides,  but considers  whether                                                               
there  are  too many  hunters.    Thus  BOG determines  how  many                                                               
hunters can be allowed in an  area.  Since sheep requires hunters                                                               
to  take a  full curl  ram  and nothing  smaller, it  is a  self-                                                               
regulating  system.   Additionally,  the  BOG  has implemented  a                                                               
selected antler harvest  for non-residents for moose  and in most                                                               
areas  of the  state for  a bull  with a  minimum 50-inch  antler                                                               
spread with  four brow tines  or three  brow tines.   In essence,                                                               
the BOG  has moved to  a conservation approach by  limiting size.                                                               
However, the "bottom line" is that  in some cases there are still                                                               
too many hunters.   He agreed it would not  change the outcome to                                                               
allow just  as many guides in  an area without also  limiting the                                                               
total number  of hunters.   Certainly, the  guides must  submit a                                                               
request  or understanding  that  they take  a  certain number  of                                                               
moose or  bear in each  area, which is  submitted as part  of the                                                               
operational plan.   This  is one  way the  BOG has  requested the                                                               
conservation be addressed  in the GCP proposal.   Additionally, a                                                               
guide who  operates in an  area for  10 years under  a concession                                                               
will  be  looking  for  a  stable  financial  plan  so  he  would                                                               
basically "farm" the numbers of animals  he has in his area.  Not                                                               
only  does  the  GCP  promote   land  stewardship,  but  wildlife                                                               
stewardship will also be enhanced.   In conclusion, the BOG faces                                                               
many challenges,  but the last step  the BOG takes is  to require                                                               
permit hunts to severely restrict the numbers of hunters.                                                                       
                                                                                                                                
2:44:56 PM                                                                                                                    
                                                                                                                                
KELLY VREM,  Chair, Big Game  Commercial Services  Board (BGCSB),                                                               
referred  to  the  statement  [on slide  23]  the  proposal  will                                                               
promote multi-generation  family businesses.   He  explained that                                                               
he included  this statement in  his presentation because  most of                                                               
the  guides he  knows discourage  their sons  and daughters  from                                                               
entering  the business  since  guiding is  too  unstable at  this                                                               
point.    He envisioned  if  the  business  of guiding  was  more                                                               
stable,  the  guide's children  would  be  mentored, which  could                                                               
result in  better guides; however, he  did not mean to  imply the                                                               
children would take over the same GMU.                                                                                          
                                                                                                                                
MR. VREM  offered to cover  the remaining bullet points  on slide                                                               
23 entitled, "Big Game Commercial  Services Board - Perspective."                                                               
He said  Alaska cannot  avoid restricting  guide activities.   He                                                               
offered his  belief that  the state  is approaching  a saturation                                                               
point [of  hunters].  He offered  his belief that the  public and                                                               
even some guides  are getting fed up, including  some older, very                                                               
fit  guides.   He  agreed  that  guide concessions  promote  good                                                               
citizenship and stewardship.   The guides who  have federal guide                                                               
use areas  can have them  revoked if  they don't adhere  to their                                                               
operations  plan or  overharvest animals.   Further,  guides with                                                               
concessions  tend   to  develop  relationships  with   the  local                                                               
villages and local  hunters.  Finally, these  guides "farm" their                                                               
areas since they depend on them in future years.                                                                                
                                                                                                                                
2:48:15 PM                                                                                                                    
                                                                                                                                
MR. VREM  turned to  the bullet relating  that land  managers are                                                               
able  to help  BGCSB enforce  regulations.   The  BGCSB can  only                                                               
enforce behavior  and professional  standards; however,  the land                                                               
manager  controls the  access.   For example,  currently a  guide                                                               
operating on state land can  keep on operating despite violations                                                               
since  the DNR  must provide  the  land use  authorization.   The                                                               
control  that the  land managers  can exert  over an  occupant is                                                               
tremendous and  should not  be overlooked.   In  particular, this                                                               
has been evident  for guides operating on federal  lands who must                                                               
be in compliance.                                                                                                               
                                                                                                                                
MR.  VREM turned  to  the bullet  point  that concessions  insure                                                               
long-term  stability  for  future   guides.    He  suggested  the                                                               
concessions could create  a more stable guide  business, one that                                                               
allows guides to plan their businesses.                                                                                         
                                                                                                                                
MR. VREM  offered his belief that  in some areas of  the state it                                                               
is the transporters  exerting more pressure on  the resource than                                                               
are the guides, which he  experienced when he guided in Southwest                                                               
Alaska.  He   referred  to  AS  08.54.790   [12][B],  which  read                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
          [12] "transportation services" means the carriage                                                                     
     for compensation of big  game hunters, their equipment,                                                                    
     or big game  animals harvested by hunters  to, from, or                                                                    
     in  the  field;   "transportation  services"  does  not                                                                    
     include the  carriage by aircraft of  big game hunters,                                                                    
     their  equipment,  or  big game  animals  harvested  by                                                                    
     hunters ...                                                                                                                
          (B) by an air taxi operator or air carrier for                                                                        
     which  the   carriage  of   big  game   hunters,  their                                                                    
     equipment, or big game animals  harvested by hunters is                                                                    
     only  an incidental  portion of  its business;  in this                                                                    
     subparagraph,    "incidental"   means    transportation                                                                    
     provided to a  big game hunter by an  air taxi operator                                                                  
     or air carrier who does not ... "                                                                                          
                                                                                                                                
MR. VREM  offered his  belief that this  language creates  a huge                                                               
loophole.    The  BGCSB  will  need  the  legislature's  help  to                                                               
eliminate  this  provision   before  transporter  compliance  can                                                               
occur.  While he has  personally found most licensed transporters                                                               
are  honest, it  is  the  air taxis  who  operate  under the  [AS                                                               
08.54.790  [12](B)]  loophole  that   have  caused  most  of  the                                                               
problems.  On the North  Slope, the two biggest service providers                                                               
for  drop-off service  are "hiding"  behind this  exemption.   He                                                               
apologized  but needed  to  leave  the meeting  now  in order  to                                                               
travel to a BGCSB meeting.                                                                                                      
                                                                                                                                
2:52:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  whether penalty  provisions similar                                                               
to the  federal concessions would  be covered  under regulations.                                                               
He  specifically  asked  whether someone  working  outside  their                                                               
operational plan would be subject to suspension.                                                                                
                                                                                                                                
MR. VREM  replied that is  his assumption.   He said  he couldn't                                                               
speak for  the DNR,  but the federal  concessions have  an annual                                                               
performance review.   While he serves  on the BGCSB, he  has been                                                               
both  a commenter  and  a  spectator [on  federal  reviews.]   He                                                               
anticipated that the penalty provisions  would be more refined as                                                               
the process continues.                                                                                                          
                                                                                                                                
MR. COX responded  that absolutely, the permits  would be subject                                                               
to   terms  and   conditions,  which   will  be   established  by                                                               
regulation.                                                                                                                     
                                                                                                                                
2:53:44 PM                                                                                                                    
                                                                                                                                
MR. VREM,  responding to Representative Johnson's  fear about the                                                               
implied contract, emphasized  that guides do not  seek an implied                                                               
contract or  buyout provision.  He  said this has never  been the                                                               
case.                                                                                                                           
                                                                                                                                
2:54:56 PM                                                                                                                    
                                                                                                                                
THOR   STACEY;   Registered    Guide   1194;   Lobbyist,   Alaska                                                               
Professional Hunters Association (APHA), introduced himself.                                                                    
                                                                                                                                
JOE   KLUTSCH,   Master    Guide   91;   Representative,   Alaska                                                               
Professional Hunters Association (APHA), introduced himself.                                                                    
                                                                                                                                
2:55:25 PM                                                                                                                    
                                                                                                                                
MR. STACEY, who also holds  Registered Guide license number 1194,                                                               
is  testifying  on  behalf of  the  Alaska  Professional  Hunters                                                               
Association.   First,  guiding  is a  complex  issue involving  a                                                               
number  of agencies  with oversight  over commercial  hunting and                                                               
wildlife resources.   Currently,  in order to  obtain a  land use                                                               
authorization on  state lands, a  registered guide must  apply to                                                               
the DNR and pay a $500 fee.   It does not matter how many pending                                                               
investigations,  game violations  by  clients,  or problems  with                                                               
assistant guide  compliance, the  DNR is  compelled to  issue the                                                               
land use permit and has no  authority to deny, revoke, or suspend                                                               
the  land use  authorization.   However,  on  federal lands,  the                                                               
guide concession program  seeks to have the  most qualified guide                                                               
hold  a specific  geographic  unit.   The  selected applicant  is                                                               
subject to  a progressive fee  structure, but is chosen  based on                                                               
his  knowledge,   compliance  with  operating   permit,  reported                                                               
employee  safety record,  and  reported client  use  days in  the                                                               
field.                                                                                                                          
                                                                                                                                
2:57:08 PM                                                                                                                    
                                                                                                                                
MR. STACEY said  the DNR has an opportunity to  develop a similar                                                               
program in the  form of the guide concession program  (GCP).  The                                                               
question before  the committee should  not be focused  on whether                                                               
guides should  have six  assistant guides  or the  fee structure,                                                               
but whether to empower the  DNR to geographically restrict guides                                                               
based on a system that  rewards quality, experience, and promotes                                                               
stewardship among operators on its lands.                                                                                       
                                                                                                                                
MR.  STACEY  indicated  the  current   status  quo  has  been  to                                                               
encourage  an  unlimited  competitive  entry at  the  expense  of                                                               
degraded wildlife  resources and state  residents, non-residents,                                                               
and all  user groups.   He  supported the  [proposal in  HB 158],                                                               
which  would  empower  DNR  to  encourage  and  promote  a  guide                                                               
selection  program that  rewards the  most qualified  experienced                                                               
applicants, encourages them  to be wise stewards of  the land and                                                               
resources and  penalizes them or  revokes land  use authorization                                                               
if the guides violate the public's trust.                                                                                       
                                                                                                                                
2:58:18 PM                                                                                                                    
                                                                                                                                
MR.  STACEY  compared  APHA's  guides  operating  concessions  on                                                               
federal lands since 1988 to those  operating on state lands.  The                                                               
guides operating  on federal lands have  seen their opportunities                                                               
remain  stable  or flourish  whereas  guides  operating on  state                                                               
lands have  seen declining and  unstable businesses.   He offered                                                               
his belief  the state  program has  harmed the  public.   He said                                                               
that competitive, unrestricted,  commercial opportunity has never                                                               
been  the  state's  policy for  renewable  resource  development,                                                               
beginning  with  fish  trap restrictions.    In  conclusion,  the                                                               
proposed  guide   concession  program  would  reward   merit  and                                                               
experience when  selecting guides for concessions.   Finally, the                                                               
proposal  is designed  to charge  appropriate fees  and give  the                                                               
state the ability to deny or revoke permits.                                                                                    
                                                                                                                                
2:59:18 PM                                                                                                                    
                                                                                                                                
MR. KLUTSCH said he has been  living on the King Salmon Peninsula                                                               
for almost 40 years and has  operated a small summer guided sport                                                               
fishing operation.   He currently  operates Katmai  Guide Service                                                               
and is a  master guide, number 91.  Further,  he has been guiding                                                               
on federal lands  post-Owsichek.  He said everything  that he had                                                             
worked  for eight  years went  away when  the ruling  was issued.                                                               
Subsequently, a Task  Force on Guiding and Game  was appointed by                                                               
Governor  Steve  Cowper,  with  representatives  of  the  guiding                                                               
industry,  state, and  federal land  managers participating  over                                                               
several  years  to  formulate  a  series  of  recommendations  to                                                               
restructure some  type of statutory and  regulatory framework for                                                               
guiding.    While a  state  board  was  not authorized  to  rank,                                                               
evaluate, or  establish a specific  concession area,  the federal                                                               
U.S.  Fish and  Wildlife Service  (USFWS) and  the National  Park                                                               
Service (NPS)  established concessions.  He  described himself as                                                               
one of  the "guinea pigs" of  the federal concession system.   He                                                               
said currently  holds and has held  permits for over 25  years in                                                               
the Alaska  Peninsula Wildlife Refuge,  the Becharof  Refuge, the                                                               
Kodiak   National  Wildlife   Refuge,  and   the  National   Park                                                               
concession contract in Aniakchak National Monument and Preserve.                                                                
                                                                                                                                
3:01:23 PM                                                                                                                    
                                                                                                                                
MR. KLUTSCH said in short,  the justification for this system was                                                               
for  the  benefit of  the  [wildlife]  resources and  the  users.                                                               
Despite  the  regulatory  constraints of  federal  agencies,  the                                                               
quality of  the experience on  federal lands is far  greater than                                                               
it is  on state  lands.   He asked  to address  Representative P.                                                               
Wilson's question on accountability, which  he said is done by an                                                               
operations  plan.    He  detailed   the  operations  plan,  which                                                               
includes pre-season client rosters,  the proposed take by species                                                               
by date,  and the  assistant guides.   The operations  plan under                                                               
the proposed GCP  system would be administered  by DNR, including                                                               
a  requirement for  an  operations plan  and  a post-season  hunt                                                               
record submitted  to the  BGCSB.  In  fact, this  record provides                                                               
all the data, including the  hunters, the species hunted, and the                                                               
dates of the hunt.                                                                                                              
                                                                                                                                
MR.  KLUTSCH,  addressing  Representative Johnson's  question  on                                                               
whether  this  would  constitute  a contract,  said  the  federal                                                               
agencies address this under permit  stipulations, which says that                                                               
nothing in  the permit supersedes  the Board of  Game's authority                                                               
to set seasons and bag limits.                                                                                                  
                                                                                                                                
MR.  KLUTSCH   offered  his  belief   that  the  status   quo  is                                                               
unacceptable.     He   suggested  that   without  the   preferred                                                               
alternative  [as proposed  in HB  158],  wildlife resources  will                                                               
diminish, which  will primarily affect residents  and subsistence                                                               
users.   He acknowledged  the process  to develop  the concession                                                               
program has been a long one,  and his testimony has been repeated                                                               
each year.  In his view,  everything that was predicted to happen                                                               
has happened.   In conclusion,  he offered his belief  that these                                                               
problems can be fixed.                                                                                                          
                                                                                                                                
3:04:14 PM                                                                                                                    
                                                                                                                                
MR.  BILL STEVENSON,  Registered Guide  661, stated  he has  been                                                               
Alaska resident for  over 50 years and registered  guide for over                                                               
20 years.   He related he has significant experience  in GMUs 14A                                                               
and 13D.   He supported guide  use areas on state  lands, similar                                                               
to  the federal  guiding concession  program.   He said  having a                                                               
guide area  does not represent  an entitlement, but  is something                                                               
that must be  earned.  The catalyst for this  current push is the                                                               
overcrowding  of  guides in  GMUs  13D  and  14A in  the  Chugach                                                               
Mountains.   Prior  to   2000,   six  guides   operated  in   the                                                               
aforementioned  GMUs,  which  increased   in  2008  to  38  guide                                                               
operations.                                                                                                                     
                                                                                                                                
MR.  STEVENSON highlighted  what  he characterized  as an  almost                                                               
"silent  problem" which  is the  number  of clients  an air  taxi                                                               
takes into an area,  Previously,  only a few guides had their own                                                               
airplanes  so  operators  typically   could  avoid  one  another;                                                               
however, now, one air taxi operator  will take in over 50 clients                                                               
on  the ground  at one  time.   Several air  taxi operators  have                                                               
multiple aircraft,  while others  have a  single operator  with a                                                               
Super Cub.   In summary, he  agreed a guide area  system would be                                                               
great to  have in place, but  the transporter issue must  also be                                                               
addressed.                                                                                                                      
                                                                                                                                
3:06:52 PM                                                                                                                    
                                                                                                                                
MR. STEVENSON  said a  few problems  exist with  the forms/permit                                                               
applications that must be filled  out.  He emphasized that guides                                                               
with concessions can  act as stewards of the  lands and wildlife,                                                               
whereas  with  totally  unregulated  areas what  happens  is  the                                                               
mentality that  if you  do not  do it,  the next  guy will.   For                                                               
example,  if  one  air  taxi  doesn't  drop  clients  off  at  an                                                               
airstrip, the next  one will.  He  characterized the overcrowding                                                               
can be  visualized as layers  of transparencies with  lines drawn                                                               
for activity.   Over time some  lines get quite thick  and pretty                                                               
soon the entire transparency is blocked.                                                                                        
                                                                                                                                
MR.  STEVENSON specifically  characterized the  sheep populations                                                               
in GMUs  14A and 13D as  being a "perfect storm."   After several                                                               
difficult  winters,  sheep  populations   were  down.    Although                                                               
hunters don't  impact ewes and  lambs, since they hunt  rams, the                                                               
ewes are affected by nature  and eventually the ram population is                                                               
decreased.                                                                                                                      
                                                                                                                                
3:10:17 PM                                                                                                                    
                                                                                                                                
MR. STEVENSON identified the four  basic user groups as including                                                               
Native,  resident,  air taxis,  and  guides.   He  described  the                                                               
Native use he  is most familiar with as ones  that use relatively                                                               
small  areas  near  villages  and  expand  to  nearby  waterways.                                                               
Typically,  residents use  the road  system and  ATVs, with  some                                                               
aircraft  use.   Air taxis  and guides  are commercial  operators                                                               
have made significant investments and  make a living from profit.                                                               
He  suggested one  guide may  have 10-15  clients, but  many take                                                               
fewer  clients, although  a  few guides  take  out more  clients.                                                               
However, the  smallest air taxi  operator will take  more clients                                                               
to the field than any of the  guides.  He offered his belief that                                                               
the  proposed GCP  proposal would  limit the  smaller of  the two                                                               
user groups.   He estimated that non-resident  hunters take about                                                               
10 percent  of the game, but  contribute about 80 percent  of the                                                               
revenues.   He remarked that  by and large, the  guiding industry                                                               
is comprised of "good" guides with a few "bad apples."                                                                          
                                                                                                                                
MR.  STEVENSON emphasized  that a  guided client  contributes far                                                               
more revenue  to Alaska  than an unguided  client.   Overall, the                                                               
larger air  taxi operators may  contribute more than  guides, but                                                               
the air taxi  operators have a much larger  footprint and impact.                                                               
He offered his  belief that a GCP would be  a worthwhile program,                                                               
but only  if it will increase  the quality of the  experience for                                                               
the guiding industry  without leaving "the door  open further for                                                               
the air taxi operators."                                                                                                        
                                                                                                                                
3:13:20 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE  held over HB  158 and announced  public testimony                                                               
would be taken March 13, 2013.                                                                                                  
                                                                                                                                
3:13:27 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 3:13 p.m.                                                                 

Document Name Date/Time Subjects
HB0158A.pdf HRES 3/11/2013 1:00:00 PM
HB 158
HB158 Hearing Request.pdf HRES 3/11/2013 1:00:00 PM
HB 158
HB158 Sponsor Statement.pdf HRES 3/11/2013 1:00:00 PM
HB 158
HB158-DNR-MLW-3-8-13.pdf HRES 3/11/2013 1:00:00 PM
HB 158
HRES HB 158 DNR-F&G 3.11.13.pdf HRES 3/11/2013 1:00:00 PM
HB 158
HRES HB158 Letter Packet 1.PDF HRES 3/11/2013 1:00:00 PM
HB 158
HRES HB158 Letter Packet 2.PDF HRES 3/11/2013 1:00:00 PM
HB 158
HRES HB158 Letter Packet 3.pdf HRES 3/11/2013 1:00:00 PM
HB 158
HRES HB158 Letter Packet 4.pdf HRES 3/11/2013 1:00:00 PM
HB 158