Legislature(2015 - 2016)BARNES 124
03/25/2015 01:00 PM House RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| HB100 | |
| HB128 | |
| Confirmation Hearing(s): Board of Game | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 100 | TELECONFERENCED | |
| + | HB 128 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
March 25, 2015
1:01 p.m.
MEMBERS PRESENT
Representative Benjamin Nageak, Co-Chair
Representative David Talerico, Co-Chair
Representative Bob Herron
Representative Craig Johnson
Representative Kurt Olson
Representative Paul Seaton
Representative Andy Josephson
MEMBERS ABSENT
Representative Mike Hawker, Vice Chair
Representative Geran Tarr
OTHER LEGISLATORS PRESENT
Representative Jim Colver
COMMITTEE CALENDAR
HOUSE BILL NO. 100
"An Act establishing a credit against the net income tax for an
in-state processing facility that manufactures urea or ammonia;
and providing for an effective date."
- MOVED CSHB 100(RES) OUT OF COMMITTEE
HOUSE BILL NO. 128
"An Act establishing August 10 of each year as Alaska Wild
Salmon Day."
- MOVED HB 128 OUT OF COMMITTEE
CONFIRMATION HEARING(S):
Board of Game
Teresa Sager Albaugh - Fairbanks
Kip Fanning - Yakutat
- CONFIRMATION(S) ADVANCED
PREVIOUS COMMITTEE ACTION
BILL: HB 100
SHORT TITLE: UREA/AMMONIA FACILITY TAX CREDIT
SPONSOR(s): REPRESENTATIVE(s) CHENAULT
02/09/15 (H) READ THE FIRST TIME - REFERRALS
02/09/15 (H) RES, FIN
03/11/15 (H) RES AT 1:00 PM BARNES 124
03/11/15 (H) Heard & Held
03/11/15 (H) MINUTE(RES)
03/25/15 (H) RES AT 1:00 PM BARNES 124
BILL: HB 128
SHORT TITLE: ALASKA WILD SALMON DAY
SPONSOR(s): REPRESENTATIVE(s) EDGMON
02/27/15 (H) READ THE FIRST TIME - REFERRALS
02/27/15 (H) FSH, RES
03/12/15 (H) FSH RPT 4DP
03/12/15 (H) DP: HERRON, FOSTER, MILLETT, STUTES
03/12/15 (H) FSH AT 10:00 AM CAPITOL 120
03/12/15 (H) Moved HB 128 Out of Committee
03/12/15 (H) MINUTE(FSH)
03/25/15 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
DONALD BULLOCK, House Majority Staff
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: During the hearing on HB 100, explained the
purpose of Amendment 2.
REPRESENTATIVE BRYCE EDGMON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as prime sponsor of HB 128.
THERESA SAGER ALBAUGH, Appointee
Board of Game
Mentasta Pass, Alaska
POSITION STATEMENT: As appointee to the position of the Board
of Game, discussed her qualifications and answered questions.
KIP FANNING, Appointee
Board of Game
Yakutat, Alaska
POSITION STATEMENT: As appointee to the position of the Board
of Game, discussed his qualifications and answered questions.
GARY STEVENS
Chugiak, Alaska
POSITION STATEMENT: Testified in support of the appointments of
Ms. Albaugh and Mr. Fanning to the Board of Game.
AL BARRETTE
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of the appointment of
Ms. Albaugh to the Board of Game.
MIKE TINKER
Alaska Wildlife Conservation Association
Ester, Alaska
POSITION STATEMENT: Testified in support of the appointments of
Ms. Albaugh and Mr. Fanning to the Board of Game.
JAMES KOWALSKY
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to the appointments
of Ms. Albaugh and Mr. Fanning to the Board of Game.
THOR STACEY, Lobbyist
Alaska Professional Hunters Association (APHA)
POSITION STATEMENT: Testified in support of the appointments of
Ms. Albaugh and Mr. Fanning to the Board of Game.
ACTION NARRATIVE
1:01:05 PM
CO-CHAIR BENJAMIN NAGEAK called the House Resources Standing
Committee meeting to order at 1:01 p.m. Representatives
Johnson, Josephson, Herron, Olson, Seaton, Talerico, and Nageak.
Representative Tarr arrived as the meeting was in progress.
Representative Colver was also present.
HB 100-UREA/AMMONIA FACILITY TAX CREDIT
1:03:08 PM
CO-CHAIR NAGEAK announced that the first order of business is
HOUSE BILL NO. 100, "An Act establishing a credit against the
net income tax for an in-state processing facility that
manufactures urea or ammonia; and providing for an effective
date."
1:03:23 PM
REPRESENTATIVE SEATON moved to adopt Amendment 1, labeled 29-
LS0423\H.3, Nauman, 3/18/15, which read:
Page 1, line 10, following "delivered":
Insert "in the taxable year of the taxpayer"
Page 1, line 13, following "zero.":
Insert "An unused tax credit or portion of a tax
credit received under this section may not be carried
forward for use in a taxable year of the taxpayer
after the taxable year in which the credit is earned."
CO-CHAIR TALERICO objected for the purpose of discussion.
1:04:28 PM
REPRESENTATIVE SEATON explained Amendment 1 would ensure that
the credits are available for that year in that if the royalty
credits are greater than the corporate tax credit it cannot be
carried on for future years. He explained this is a 10-year
program that is available and those credits each year are
available, but must be used in that year.
CO-CHAIR TALERICO removed his objection. There being no further
objection, Amendment 1 passed.
1:05:58 PM
REPRESENTATIVE SEATON moved to adopt Amendment 2, labeled 29-
LS0423\H.6, Nauman, 3/24/15, which read:
Page 1, line 10, following "to":
Insert "the in-state processing facility owned
by"
REPRESENTATIVE JOHNSON objected for the purpose of discussion.
1:06:20 PM
REPRESENTATIVE SEATON indicated that Amendment 2 clarifies
language and asked the sponsor to address the amendment.
DONALD BULLOCK, House Majority Staff, Alaska State Legislature,
explained that the purpose of Amendment 2 is in response to a
concern expressed by the Department of Revenue to narrow the
credit to the gas delivered to a taxpayer for the processing
into urea of ammonia. He offered the scenario that an owner of
a plant bought gas to heat another facility and they bought the
gas to be used in the processing plant, only the gas delivered
to the processing plant owned by that taxpayer would be eligible
to generate the credit.
1:07:45 PM
REPRESENTATIVE JOHNSON removed his objection. There being no
further objection, Amendment 2 passed.
1:08:08 PM
REPRESENTATIVE SEATON moved to adopt Amendment 3, labeled 29-
LS0423\H.7, Nauman, 3/24/15, which read:
Page 1, line 2, following "ammonia;":
Insert "relating to establishing the value of the
state's royalty share of gas production based on
contracts with certain in-state processing facilities
that manufacture urea or ammonia;"
Page 1, following line 3:
Insert a new bill section to read:
"* Section 1. AS 38.05.180 is amended by adding a
new subsection to read:
(ll) For a contract that is entered into on or
after the effective date of this subsection, within 90
days after the written request of a lessee of a lease
issued under this section, in order to establish the
value of the state's royalty share of gas production
sold by the lessee under the contract, the
commissioner may enter into an agreement with the
lessee to use or accept as a price for the gas an
amount that is not less than the price established in
the contract between the lessee and an in-state
processing facility whose primary function is the
manufacturing and sale of urea or ammonia to third
parties in arm's length transactions, not to exceed
the amount that would otherwise be due under the
lease. The commissioner may enter into an agreement
under this subsection if
(1) the commissioner makes a written
finding that
(A) it is in the best interest of the
state; and
(B) based on clear and convincing evidence,
the contract price is not unreasonably low; and
(2) the primary function of the in-state
processing facility is to engage in the production of
urea or ammonia, and the owner of the in-state
processing facility with which the lessee has entered
into the contract is not affiliated with the lessee or
with a subsequent purchaser of more than 10 percent of
the urea or ammonia produced; for purposes of this
paragraph, the parties to a contract or purchase are
affiliated if, in the judgment of the commissioner,
one of the parties to the contract or purchase
exercises substantial influence over the policies and
actions of the other as evidenced by relationship
based on common ownership or family interest or by
action taken in concert without regard to whether that
influence is based on stockholdings, stockholders,
officers, or directors."
Page 1, line 4:
Delete "Section 1"
Insert "Sec. 2"
Renumber the following bill sections accordingly.
Page 1, following line 13:
Insert a new subsection to read:
"(c) To claim a credit under this section, the
taxpayer shall report to the department the name of
each lessee delivering natural gas to the in-state
processing facility, the identification and quantity
of natural gas from each state lease that is the
source of the natural gas, and the price for the
natural gas established in a contract between the
owner of the in-state processing facility and the
lessee delivering the natural gas."
Page 2, line 3:
Delete "sec. 1"
Insert "sec. 2"
Page 2, line 6:
Delete "Sections 1 and 3"
Insert "Sections 1, 2, and 4"
Page 2, line 7:
Delete "Section 2"
Insert "Section 3"
1:08:23 PM
REPRESENTATIVE JOHNSON objected for the purpose of discussion.
1:08:45 PM
MR. BULLOCK described Amendment 3 as an interesting credit as
unlike an investment tax credit, where the taxpayer buys
something and they know what they paid for it and can figure out
what the credit is. This credit is based upon the royalty due
on the leases that produce the gas that the taxpayer will use in
the processing plant. He advised this is similar to existing
law in the oil & gas leasing statute. Currently, the statute
addresses gas that is sold and contracts for sale to certain
electric utilities, and there is another provision allowing the
contract to set the price for agricultural chemicals. Amendment
3, he noted, parallels the existing language in that the lessee
first of all negotiate with the processing plant, which he
describes as an arm's length transaction with the goal to set a
reasonable market price, or a price the state would otherwise
use to value the gas royalty purposes. By doing this ahead of
time, the lessee selling the gas to the processing facility
submits the contract to the commissioner of the Department of
Natural Resources (DNR). The commission then would review it
and determine whether it is a reasonable contract with no games
being played, the parties aren't too close, and with the goal to
get it to the price that would have resulted if the gas was
later audited for royalty purposes. He described it as a check
in determining that it is a legitimate price. He explained that
by doing it this way, rather than subjecting the royalty to a
later audit, the taxpayer knows what the credits will be as
there is a contract price and a percentage of the contract price
represents the royalty. The taxpayer knows that the producer,
the lessee, has some stability in knowing what their royalty
will be on that gas and the commissioner would have reviewed it
and determined it is the price that makes sense. He opined it
is better than the alternative to try and say that the taxpayer
takes a credit and then down the road, it turns out that the gas
wasn't worth as much, or worth more. He opined that raises the
question of, what should be done with the credits since the
credit is based on the royalty, and the royalty has changed. He
commented that Amendment 3, deals with that issue upfront as
everyone know what the credit is and the lessee selling the gas
knows what their royalty is.
1:11:48 PM
[The committee treated the objection as removed.] There being
no further objection, Amendment 3 passed.
1:12:37 PM
CO-CHAIR TALERICO moved to report HB 100, labeled 29-LS0423\H,
as amended, out of committee with individual recommendations and
the accompanying fiscal notes from committee.
1:13:09 PM
REPRESENTATIVE SEATON objected for the purpose of discussion,
and offered that there is discomfort with credits across the
industry. He pointed out that this is fairly small, targeted
specifically to the amount of corporate income tax offset by gas
that would be purchased for instate use. He noted it has a 10-
year window and if not used within 10-years, or any portion of
that 10-years, it is not a rolling 10-years so he is comfortable
that sideboards are tight enough that it would be a benefit to
the state to get the additional work done and add to the
benefits of restarting an industry. He expressed his general
feeling is that broad tax credits are a problem to the state,
and this bill is not as it is based on actual profitability. He
described the bill as a well-crafted tax credit as opposed to
those that could put the state at risk as being very broad
based, based upon the amount of investment someone makes.
1:15:10 PM
REPRESENTATIVE JOSEPHSON said he fully associates himself with
Representative Seaton's comments, and added he doesn't
understand why the applicant says they will spend $275 million
and want just a few million dollars of assistance in the form of
a credit. He opined the case made is compelling and will not
object to the bill leaving committee.
1:15:55 PM
REPRESENTATIVE TARR said she shares in the comments of
Representative Josephson and appreciates how the bill is
targeted. She recalled in previous budgets there was a
consideration of funds to help support the plant when it was
having difficult times. She researched the issue, and in 2007
the legislature gave the plant a $5 million capital project to
help the company continue when there was a natural gas shortage.
She opined that the investments being made sound substantial and
other issues have been resolved so going forward the committee
will not have to consider some of the same options again should
they find themselves in trouble. She said she looks forward to
a number of jobs and the $275 million of investment in Alaska.
She expressed her hope that the legislature plans better in the
future for potential gas shortages and it won't have to come
back on this issue.
1:17:18 PM
REPRESENTATIVE SEATON removed his objection. There being no
further objection, HB 100, as amended, with individual
recommendations and the accompanying fiscal notes was reported
from the House Resources Standing Committee.
The committee took an at-ease from 1:17 to 1:20 p.m.
HB 128-ALASKA WILD SALMON DAY
1:20:24 PM
CO-CHAIR TALERICO announced that the next order of business is
HOUSE BILL NO. 128, "An Act establishing August 10 of each year
as Alaska Wild Salmon Day."
1:20:42 PM
REPRESENTATIVE BRYCE EDGMON, Alaska State Legislature, as prime
sponsor, introduced HB 128 and advised it sets aside August 10
each year to celebrate the Alaska Wild Salmon. He advised that
the bill creates an opportunity for all Alaskans to celebrate
[wild king, sockeye, coho, and pink] salmon from any standpoint
they so desire. Research indicates that the creation of a wild
salmon day also offers those in the tourism industry, and
marketers of all things Alaska, an opportunity to have the cache
of Alaska Wild Salmon Day, he offered. In drafting the bill, he
said, they worked with tourism industry entities and chose
August 10 as it was a date unoccupied by any other Alaska day,
and it wasn't in the month of July which is stacked with a
number of celebrations.
1:23:11 PM
REPRESENTATIVE HERRON asked whether August 10 is Representative
Edgmon's birthday.
REPRESENTATIVE EDGMON replied it is not his birthday and is an
arbitrary date. He advised that those in the tourism industry
believe August 10 is still during the height of the tourist
season, and that it would be appropriate to set one day aside
for those coming into the state as tourists as well as Alaskans
to celebrate Alaska Salmon Day.
REPRESENTATIVE HERRON asked whether the sponsor would support an
amendment offered by United Fishermen of Alaska to change "chum"
to "keta."
REPRESENTATIVE EDGMON responded that "chum" is the more accepted
term, but he would defer to the committee's will. He pointed
out that most people know "dog salmon" as "chum salmon."
CO-CHAIR TALERICO opened public testimony then closed it after
ascertaining no one wished to testify.
1:25:47 PM
REPRESENTATIVE SEATON said he is unsure the date is right
because two weeks ago, 259 king salmon were caught in Homer
during the tournament, and a February date may be better.
Salmon are ubiquitous around Alaska and are very valued by
everyone, he stated, and he supports the bill.
REPRESENTATIVE HERRON concurred that salmon is Alaska's way of
life and recognizing wild salmon is a great honor for Alaska.
REPRESENTATIVE TARR supported the bill and asked whether there
would be an Alaska Wild Salmon Day song to help celebrate.
CO-CHAIR NAGEAK advised it is appropriate that wild salmon are
celebrated on August 10.
1:27:25 PM
REPRESENTATIVE SEATON moved to report HB 128, labeled 29-
LS0563\W, out of committee with individual recommendations and
the accompanying zero fiscal notes. There being no objection,
HB 128 was reported from the House Resources Standing Committee.
The committee took an at-ease from 1:27 to 1:31 p.m.
^CONFIRMATION HEARING(S): Board of Game
CONFIRMATION HEARING(S): Board of Game
1:31:57 PM
CO-CHAIR TALERICO brought before the committee the appointments
of Teresa Sager Albaugh and Kip Fanning to a position on the
Board of Game. [The committee packets contained biographical
information on both appointees.]
1:32:11 PM
THERESA SAGER ALBAUGH, Appointee, Board of Game, said she is a
life-long Alaskan, raised within a hunting and fishing family,
lives at Mentasta Pass with her husband, cuts wood, hauls water,
and learns of news events through their radio and internet as
they do not have network or satellite television. She explained
that the common thread running through all of her experiences is
hunting and fishing, and she enjoys sharing those traditions
with younger members of the family. In terms of her
professional background, currently she works for a consulting
company designing and managing community improvement
construction projects in the rural areas of Alaska, and she
gained experience with the statutory and regulatory process by
working for members of the Interior Delegation in the Alaska
State Legislature. She opined that her contribution to the
Board of Game is primarily from the perspective and position of
a resident Alaskan who has lived in both urban and rural
environments. She expressed her appreciation of serving on the
board for the past six years.
1:35:30 PM
REPRESENTATIVE JOSEPHSON noted that the only data he has seen on
the subject of visitors able to view wolves at the Denali
National Park and Preserve was 44 percent in 2010, and currently
4 percent of the visitors see them. He asked whether that is a
consideration the Board of Game should keep in mind when making
decisions regarding buffer zones.
MS. SAGER ALBAUGH replied it is one of many considerations. On
this issue she has attempted to keep in mind the additional
consideration of allowing visitors to Alaska to observe and
experience what the "real Alaska" has to offer. Sometimes that
involved abundant wildlife where many animals can be seen from a
vehicle or bus, and sometimes it means that wildlife is not
abundant and, therefore, not available to view. She opined that
the reduction in the view ability of wolves mention within the
percentage figure is a case in point and described her comments
as the perspective she tries to give to that issue.
REPRESENTATIVE JOSEPHSON observed that Ms. Albaugh's resume
referred to "Slana Alaskans Unite," and asked her to explain the
group.
MS. SAGER ALBAUGH responded she no longer serves on the board of
Slana Alaskans Unite, but is a member of the organization. She
explained that Slana Alaskans Unite was formed when parks and
preserves were created under Alaska National Interest Lands
Conservation Act (ANILCA). At the time, chapters of Alaskans
Unite were all over the state which basically were citizen
organizations formed to protect the uses and enjoyment of
Alaska's lands drawn into Park and Wilderness regulations, and
Slana Alaskans Unite was one of many. Slana Alaskans Unite, she
opined, is the only remaining chapter in the state and it
continues to watchdog the regulations and activities of the
National Park Service, and its impact on Alaskans and people who
use those lands.
1:38:55 PM
REPRESENTATIVE JOSEPHSON referred to an article from two years
ago regarding the "buffer zone" issue, and noted that the press
could be incorrect. He read, "She supported removing the buffer
because, in her view the state shouldn't be managing its lands
to meet a federal purpose." He questioned whether there would
ever be a circumstance where a state and federal purpose might
be the same in a given area.
MS. SAGER ALBAUGH answered "Yes," there are probably instances
wherein the state and federal purposes are aligned in various
areas of the state.
1:40:00 PM
REPRESENTATIVE HERRON asked what has surprised and disappointed
her in the six years she served on the Board of Game.
MS. SAGER ALBAUGH replied that her greatest disappointment is
the need for greater support of the advisory committee system
across the state, because it is so broad and expansive. She
opined it is very valuable to the board process and advisory
committees are limited in their travel expenses and the number
of meetings it can hold. The advisory committee system is
[important] for the Board of Game, and she finds it unfortunate
it is not able to have a significantly greater measure of
participation in advising the Board of Game. She understands
that the budget constraints Alaska is currently under are
significant and the legislature must struggle with that, but in
terms of significant disappointment she has witnessed over the
past six years, that is a primary disappointment. Her greatest
surprise is the number of proposals submitted to the board, and
the amount of time the board has to process and deal with all of
the proposals. Her first meeting was 2009, and the board met
for 10-11 days and had 243 proposals and, she advised, she had
not anticipated the intense schedule and that the intensity
would be as significant as it was. It remains a challenge for
her, but she does appreciate the opportunity.
1:43:16 PM
REPRESENTATIVE TARR, regarding state and federal purpose, asked
her to elaborate on the state and the federal government, and
game management.
MS. SAGER ALBAUGH responded that the current relationship
between the state and federal government is rather rocky due to
federal overreach. She pointed specifically to the provisions
of ANILCA in which protections were basically guaranteed to
Alaskans when many federal lands were established. Currently,
there have been many moves and maneuvers by the federal side
that basically side-step or abandon some of the provisions of
ANILCA and, she stated, she is protective of state interests in
that respect and is concerned regarding the trajectory of the
federal presence in Alaska.
1:44:47 PM
REPRESENTATIVE TARR requested Ms. Sager Albaugh to email
specific examples from her experience on the Board of Game as it
would be educational. She asked whether the appointee had been
following HB 137, which increases hunting and fishing licensing
fees with regard to resident versus non-resident. This bill is
in consideration of the federal funds available for the three-
to-one match with regard to the Pittman-Robertson Federal Aid in
the Wildlife Restoration Act, she explained.
MS. SAGER ALBAUGH said she will forward an email to the
committee, together with letters from the Board of Game. Her
personal recommendation is that it is advisable to revisit
license fees, particularly considering increases for non-
residents. She opined that the time is right to consider
resident license fee increases ... she urged the legislature to
move cautiously in establishing resident tag fees because many
of these species are directly tied to the harvest of animals
basically harvested for food. She pointed out that while
Alaskans are looking for food security and the economy being
what it is, she urged caution in adopting tag fees for
residents. In looking toward the species primarily considered
trophy species, such as Doll Sheep and Brown Bear, she advised
the committee that they are the more coveted harvest
opportunities primarily for trophy purposes. Residents would be
more inclined and would probably be willing to pay for resident
tags for those trophy species, she posited.
1:49:39 PM
REPRESENTATIVE JOSEPHSON referred to a story in the paper a week
ago today regarding the proposal to prohibit traps and snares
within 200 feet of trails on the Kenai Peninsula. He opined
that Ms. Albaugh's view was that people walking their dogs
should have them on a leash at all times, essentially, stating
it was their problem.
MS. SAGER ALBAUGH replied that Representative Josephson's
statement is pretty close, as the bottom line is that pet owners
who encountered problems with traps are those who had their pets
off leash and were basically not conforming to leash laws and
not controlling their pets.
1:51:33 PM
CO-CHAIR TALERICO advised that the committee will be taking
public testimony on both appointees.
1:52:02 PM
KIP FANNING, Appointee, Board of Game, said he was born in
Fairbanks, lives in Yakutat, was born into a commercial guiding
family, and grew up with a subsistence lifestyle. He stated he
would like to do what he can to help preserve the industry for
future generations.
1:53:04 PM
REPRESENTATIVE JOSEPHSON asked whether he is willing to listen
to people from a non-consumptive perspective who prefer
watchable wildlife.
MR. FANNING replied "Certainly," in that he takes pride in
listening to various opinions while attempting to make the best
decisions on the board. Obviously, he pointed out, moose,
caribou, and sheep hunting provides food for many families, but
there are also people who would like to view these animals
without fear of being shot, hunted, or trapped. He offered that
he doesn't have a problem with that, but there needs to be a
balance in that people must understand that many people survive
from that food. "If they want to go see them, maybe don't go
see them during hunting season, go see them some other time,"
but there definitely needs to be a balance, he said.
1:54:57 PM
REPRESENTATIVE TARR observed that Mr. Fanning's application
states he is interested in the Aviation Advisory Board, the
Board of Game, or the Permanent Fund Corporation, which is a
diverse group of boards. She asked whether Mr. Fanning has
previous board experience coming into what is described by the
previous appointee as a complex process with hundreds of
proposals.
MR. FANNING responded he does not have previous experience with
boards, but will do the best job he can and will keep an open
mind, ask many questions of witnesses, and make the best
decisions he can.
1:56:09 PM
REPRESENTATIVE TARR asked whether the Board of Game was Mr.
Fanning's second choice priority of the boards he requested.
MR. FANNING answered he has equal interest in the three boards,
but his first choice was the Board of Game.
CO-CHAIR TALERICO opened public testimony regarding the two
Board of Game appointees.
1:57:25 PM
GARY STEVENS said he has lived in Alaska for almost 45-years,
enjoys hunting and fishing, and has been a wildlife photographer
in Denali National Park and Preserve since the late 1970s. He
referred to the issue of wolves and advised he has not seen more
or less wolves since he began as a wildlife photographer and
believes it is a cyclic issue. He advised he is on the board of
the Alaska Outdoor Council and said it strongly supports re-
confirmation for Ms. Sager Albaugh as she is probably the most
respected person on the board from a broad base of Alaskan
users. Ms. Albaugh is extremely intelligent, and aware of many
of the issues affecting the activities of the board. He advised
he has not met Kip Fanning, but very much respects his father
and opined that the council supports his confirmation based
purely upon the fact he lives the life style that represents the
Alaska Outdoor Council.
1:59:46 PM
AL BARRETTE said he has participated in the Board of Game
process and advisory council process for many years. He offered
his support to Ms. Albaugh's re-confirmation to the Board of
Game as she is a subsistence user, protects the subsistence way
of life and its priority, is well-educated pertaining to
wildlife management, well prepared for each board meeting,
attends advisory council meetings in Fairbanks, Glennallen, Tok,
Mat-Su, and Anchorage of which not all members attend or have
the ability to visit and listen to issues the advisory councils
take up. In that regard, not only does Ms. Albaugh read the
proposals, suggestions, or comments, she also attends these
meetings to getting the feel of what the various areas are
discussing. She has a background using the codified findings,
statutes, and regulations, and educates herself with the
interpretations of those statutes and regulations and statewide
issues, he expressed.
MR. BARRETTE replied to Representative Tarr that he supports Kip
Fanning as, based upon his statement, he will listen to all
consumptive and non-consumptive users, educate himself,
including his background, which proves that he can be on the
Board of Game.
2:03:33 PM
MIKE TINKER, Alaska Wildlife Conservation Association, spoke in
support of Ms. Albaugh as follows:
The Alaska Wildlife Conservation Association is a 35-
year old organization based in the Interior that works
on resource issues, especially fish and game. I
personally have worked with the Board of Game for 25-
years representing the Fairbanks Advisory Committee,
the AWCA, and my family. I am her to ask you to
support Teresa Sager Albaugh for confirmation for
another term on the Board of Game. Throughout her
service on the board, Ms. Sager Albaugh has been a
caretaker of the constitutional and statutory
obligations the board should, but does not, always
follow. She comes prepared for every agenda, usually
having had several meetings with the public and
advisory committees. She has read the hundreds of
pages of information that are required for each
meeting. She has lived in more ... in the more urban
Alaskan environment in Fairbanks, but now lives and
has lived for many years in the Bush. Her experience
gives her a unique perspective. Her background as a
hunter and fisher living in a subsistence area give
her the experience to understand and appreciate the
passion of those coming before the board. Her calm
attention to detail amide the emotion and turmoil that
accompany some issues before the board is not matched
by any other member. She brings the perspective
following the statutes and procedures and not leaving
those guidelines during heated debates or question and
answer sessions. She is the board member who is
looking out for a compliance to the process,
regulations, and contradictions in purpose. I want to
thank Governor Walker for discussing her re-
appointment with the AWCA and then making that
appointment. I want to thank you for the opportunity
to support her.
2:05:24 PM
MR. TINKER continued, speaking in support of Mr. Fanning as
follows:
With regard to Mr. Fanning, we ask you to recommend
the confirmation for Mr. Fanning as a member of the
Game. As a new-comer to the regulatory process, Mr.
Fanning fits the intent of the Alaska state's men and
women who drafted the sideboards for Board of Game
members. They did not intend the Boards of Fish and
Game to be made up of hunting and fishing experts or
professionals. The language is clear that an
applicant for the board should be knowledgeable and
have experience with hunting, habitat, and issues that
provide a base for making informed decisions on
hunting and trapping regulatory manners. The
implication those guidelines is at the relatively
short term of service is an opportunity to select new
members with new questions and new ideas. The AWCA
finds that Kip Fanning has exactly the qualifications
needed. His life experience and professional
experience have given him a detailed background to
understand wildlife issues and make good conservation
decisions. He is not a registered guide, but as he
said, has worked with hunters his entire life. Mr.
Fanning recognizes the steep learning curve that lies
ahead of him moving into the regulatory, decision-
making arena. He is up to that challenge. We believe
his common sense, experience, living in a subsistence
oriented coastal community will serve him well as a
member of the Board of Game and we thank you, Mr.
Chairman, for the opportunity to testify.
2:07:30 PM
JAMES KOWALSKY said he is a 45-year resident, and testified that
neither the current Board of Game nor the appointees represent
non-consumptive users. He pointed out that a large segment of
the population are non-consumptive users, and over the decades
the Board of Game, by its makeup, made decisions that do not
represent the larger Alaska public. He urged the committee to
consider the possibility that this board should have a broader
representation through balance the scales of individual members.
He referred to Ms. Sager Albaugh, and stated it is not personal,
but it is fair to think about the fact that the larger segment
of this population are not hunters or trappers. It is only fair
to consider the possibility that there should be [non-
consumptive] representation also on this board, he stressed.
Having said that, he asked the committee to consider his
statements in that he is opposed to the appointment of Ms. Sager
Albaugh and Mr. Fanning. He stated he does not know Mr.
Fanning, but knew his father well in the 1970s. He is a long-
time resident of the state and pays attention to what goes on,
and he requested the committee to consider his statements before
taking action.
REPRESENTATIVE TARR said she appreciates Mr. Kowalsky's comments
in having a broad representation on the board, and asked whether
he has had a personal experience with the board, or tried to
make comments reflecting a different user group and his comments
were not well received.
MR. KOWALSKY responded that listening to all sides is good, but
that is not representation. His experience with the Board of
Game goes to his seven years as Wildlife and Parks Director for
the Tanana Chiefs Conference, and directly pointed out that his
testimony is purely his own. Many years ago, he essentially
attended seven years of board meetings and paid close attention
to how the board functions. He opined that his plea was to
consider the large segment of Alaskans who are non-consumption
and are not represented in the Board of Game. Non-consumptive
users may be listened to and their thoughts considered, but it
is not the same as representation. He asked that the committee
factor that into how it considers the future of the Board of
Game.
2:11:57 PM
REPRESENTATIVE TARR offered that in the event a non-consumptive
user was appointed, it is likely that person would still be out-
voted given that member would be a minority. She asked whether
Mr. Kowalsky felt a more effective form of representation is the
ability to participate as a member of the public by attending
meetings, or the opportunity to submit proposals for
consideration.
MR. KOWALSKY advised the audio is faulty and asked that she
repeat the question.
REPRESENTATIVE TARR noted that in the event one of the members
on the board was a non-consumptive user, they would likely have
a minority position. She asked whether Mr. Kowalsky felt being
a minority member on the board would be a more effective form of
representation for the non-consumptive user group as opposed to
being a member of the public submitting a proposal for
consideration by the board.
MR. KOWALSKY answered it would be better than what is currently
there now. He reiterated that these are not personal comments,
and it would certainly be closer to a representation. He
submitted that in general terms, basically 80 percent of
Alaska's voters do not hunt or trap which means there is a 15
percent representation for a very large public. He clarified
that he is looking for representation of the broader public, and
the board does not do that as much as it may think it tries, as
he is an onlooker, pays attention, has been around for a long
time, and he does not see it. He pointed out that the two
appointees being considered today do not make any progress in
that direction.
2:15:00 PM
THOR STACEY, Lobbyist, Alaska Professional Hunters Association
(APHA), said that allocation of game resource in Alaska is of
critical importance to a resource based visitor industry such as
Alaska. The association supports both appointments and, he
advised, he personally has had the good fortune to watch over
100 hours of deliberation from Ms. Sager Albaugh. He opined
that she brings a good perspective to the Board of Game, is
diligent in her preparations, conscientious in the comments she
puts on the record thereby building a good record, definitely is
not a guide industry vote, and has a good record of deliberative
process which is good for the state as a whole. He offered that
the association generally supports Mr. Fanning, and that his
father at one time was a president of the association.
Although, Kip Fanning has no ties to any person in the
association at this point that he is aware of. Mr. Fanning
brings a valuable perspective to the board as a small business
owner. He suggested that there are concerns regarding
conservation and allocation, and that drafting regulations to
address those issues as to how they are administered and acted
upon have inadvertent effects on small business. Someone with a
small business background may understand there are two ways to
get to the same result as far as the resource goes as one way is
less burdensome on small businesses while accomplishing the same
conservation goal, he commented.
2:17:19 PM
REPRESENTATIVE TARR noted that general support has been offered
for Mr. Fanning given people have less experience with him. In
the event an individual similar to Mr. Fanning is appointed and
within the meetings there are a series of unexpected
questionable decisions, she asked how the APHA would respond.
MR. STACEY replied that when there is respect for the process,
"you have to be careful that you take issues with votes, but you
can certainly take issues with a bias or something that whether
way outside of the formal process or their positions come from
an activist position they are seeking appointment to a board
such as this with the goal of a ... pre-determined bias, let's
just say ... it all depends on ... how those votes happen and if
you feel that the process is being respected. Not so much a win
or loss column on votes."
2:18:52 PM
CO-CHAIR TALERICO closed public testimony after ascertaining no
one else wished to testify.
2:19:06 PM
REPRESENTATIVE JOSEPHSON stated that Ms. Sager Albaugh is very
knowledgeable without having the academic experience, but is a
good example of how it is not required. He stated that the
decision he asked Ms. Sager Albaugh about was a 7-0 decision, so
a lot is going on there. Continuing in that regard, he said, "I
don't know that there is ... a constituency that is so seriously
unrepresented as there is relative to the Board of Game. I
can't think of anything in government like it and so I am
concerned about it."
2:20:13 PM
CO-CHAIR TALERICO requested a motion to move the two appointees
forward to a joint session for confirmation, held at a later
date. He stated that the signing of the document today neither
confirms support or opposition to either of the appointees;
signing the document confirms a hearing has been held and those
names will move forward. The committee members are not
committed to any type of vote until the joint session of the
House and Senate for confirmation.
2:20:52 PM
REPRESENTATIVE JOHNSON advised the committee has reviewed the
qualifications of the Governor's appointees as shown in the
attached referral and confirmation forms. He [moved] that the
names be forwarded to the joint session for consideration.
There being no objection, the names of Teresa Sager Albaugh and
Kip Fanning were advanced from the House Resources Standing
Committee.
The committee took an at-ease from 2:21 to 2:23 p.m.
2:24:20 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 2:24 p.m.