Legislature(2003 - 2004)

04/19/2004 09:05 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                          April 19, 2004                                                                                      
                              9:05 AM                                                                                         
                                                                                                                                
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
SFC-04 # 85, Side A                                                                                                             
SFC 04 # 85, Side B                                                                                                             
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Gary Wilken convened  the meeting at approximately 9:05 AM.                                                            
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Lyda Green, Co-Chair                                                                                                    
Senator Gary Wilken, Co-Chair                                                                                                   
Senator Con Bunde, Vice Chair                                                                                                   
Senator Fred Dyson                                                                                                              
Senator Donny Olson                                                                                                             
Senator Ben Stevens                                                                                                             
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
Also  Attending:  REPRESENTATIVE   RALPH  SAMUELS;  CHERYL   FRASCA,                                                          
Director, Office  of Management and Budget, Office  of the Governor;                                                            
BRIAN  WILSON,  Southeast  Alaska  Boat  Transporter;   RICK  URION,                                                            
Director,   Division  of  Occupational   Licensing,  Department   of                                                            
Community   and  Economic   Development;   HENRY   WEBB,  Staff   to                                                            
Representative  Ralph Samuels and  Aide, Legislative Budget  & Audit                                                            
Committee.                                                                                                                      
                                                                                                                                
Attending  via  Teleconference:  From  Offnet  Sites:  JOE  KLUTSCH,                                                          
Representative,   Alaska  Professional  Hunters  Association;   PAUL                                                            
JOHNSON, Registered Guide; HENRY TIFFANY, Registered Guide                                                                      
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SB 226-STATE AGENCY RECEIPTS                                                                                                    
                                                                                                                                
The Committee  heard from  the Office of  Management and Budget  and                                                            
held the bill in Committee.                                                                                                     
                                                                                                                                
SB 303-BIG GAME GUIDE BOARD & SERVICES                                                                                          
                                                                                                                                
The Committee  heard from the sponsor, the Division  of Occupational                                                            
Licensing,  Department of  Community and  Economic Development,  and                                                            
took public testimony.  One amendment was offered  but was withdrawn                                                            
from consideration. The bill was held in Committee.                                                                             
                                                                                                                                
SR 3-COMMEMORATING SEN. FRANK FERGUSON                                                                                          
                                                                                                                                
The Committee  heard from  the sponsor and  adopted two amendments.                                                             
The bill was held in Committee.                                                                                                 
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 226                                                                                                        
     "An Act relating to receipts of certain state agencies and the                                                             
     accounting for and disposition of those receipts; and                                                                      
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken stated  that this legislation would amend the manner                                                            
in  which  the State  budget  categorizes  certain  revenue  by  re-                                                            
designating  65 special purpose account  revenues as general  funds.                                                            
He noted that the Senate  Rules Committee by Request of the Governor                                                            
sponsors this legislation.                                                                                                      
                                                                                                                                
CHERYL FRASCA, Director,  Office of Management and Budget, Office of                                                            
the Governor, explained  that State funds are categorized as General                                                            
Funds, Federal  Funds, or Other Funds.  She shared that the  goal of                                                            
this legislation  would be to re-categorize  funds in order  to curb                                                            
the "erosion"  of the General Funds column that is  occurring as the                                                            
result of more  fund sources having been designated  as Other Funds.                                                            
                                                                                                                                
Ms. Frasca referred  the Committee to the spreadsheet  titled "State                                                            
of Alaska FY 2005  Governor Amended Fiscal Summary,"  [copy on file]                                                            
which  she identified  as being  an extraction  from  the Office  of                                                            
Management and  Budget December 2004 Fiscal Summary.  To further the                                                            
position that the Other  Funds category, with an FY 04 level of $1.1                                                            
billion, has been eroding  the General Funds column, she pointed out                                                            
that the Other Funds category  has experienced a 55 percent increase                                                            
since its FY 96  level of $629 million. During that  same timeframe,                                                            
she  continued,  the General  Funds  column  has reduced  from  $2.5                                                            
billion to $2.3 billion,  and as a result, she noted, "there is much                                                            
more  continued   pressure  on  the   General  Fund  to   fund  what                                                            
traditionally   are  very  basic  traditional  responsibilities   of                                                            
government"  such as public  safety, the  State troopers, the  Court                                                            
System, Department  of Corrections  the Legislature, the  Governor's                                                            
Office,  and Department  of  Transportation  and  Public  Facilities                                                            
highway maintenance. In  addition, she communicated that the ability                                                            
of the State  to support its traditional  responsibilities  has also                                                            
been  negatively  affected,  over  time,  by  the  decrease  in  oil                                                            
revenues.                                                                                                                       
                                                                                                                                
Ms.  Frasca pointed  out  that the  State's  Constitution  prohibits                                                            
dedicated  funds, with the  exception of  dedicated funds that  were                                                            
grandfathered  at Statehood  and the Permanent  Fund Program,  which                                                            
was approved  via a statewide  ballot measure.  She read an  excerpt                                                            
from  the 1955  Constitutional  Convention's  Finance  and  Taxation                                                            
Committee document titled  "Commentary on the Article on Finance and                                                            
Taxation"  [copy on file]  which warns against  dedicating  funds as                                                            
follows: "Even  those persons or interests  who seek the  dedication                                                            
of revenues  for their own projects  will admit that the  earmarking                                                            
of taxes  or  fees for  other interests  is  a fiscal  evil. But  if                                                            
allocation  is  permitted  for one  interest  the  denial  of it  to                                                            
another  is difficult,  and the more  special funds  are set  up the                                                            
more difficult it becomes  to deny other requests until the point is                                                            
reached where neither the  governor nor the legislature has any real                                                            
control over the finances of the state."                                                                                        
                                                                                                                                
Ms. Frasca opined  that "in practice," less scrutiny  is provided to                                                            
items  funded via  Other Funds,  and, as  a result,  she  continued,                                                            
"there is tremendous  pressure and demand on the General  Funds side                                                            
of  the  column."  Therefore,   she  continued,  the  goal  of  this                                                            
legislation  would be  to "re-cast  the way we  categorize funds  so                                                            
that the  General Funds  column has  more dollars,"  that the  State                                                            
could allocate based "on  the highest and best use." She shared that                                                            
in the FY 05 Operating  Budget there are 117 designated fund sources                                                            
of which  four  are classified  as General  Funds,  eight relate  to                                                            
Federal  Funds,  and  105  are  designated   as  Other  Funds.  This                                                            
legislation,   she  shared,  would  shift  $160  million   currently                                                            
categorized as Other Funds into the General Fund column.                                                                        
                                                                                                                                
Ms. Frasca noted  that a letter she sent to Senator  Wilken on March                                                            
11, 2004 [copy  on file] contains  a spreadsheet detailing  the $160                                                            
million  of Other Funds  that would  be transferred  to the  General                                                            
Fund.                                                                                                                           
                                                                                                                                
Ms. Frasca  suggested that  this legislation  be further  considered                                                            
during the upcoming Legislative interim.                                                                                        
                                                                                                                                
Senator Bunde  categorized it as "ironic"  of the Administration  is                                                            
desiring to  shift special funds back  into the General Fund,  as he                                                            
pointed out that  separate legislation is being proposed  that would                                                            
dedicate Permanent Fund earnings for education.                                                                                 
                                                                                                                                
Ms. Frasca responded that  that issue would require a Constitutional                                                            
Amendment to be approved by a vote of the people.                                                                               
                                                                                                                                
Senator Bunde  expressed that "the underlying argument  is still the                                                            
same, we ought not to tie our hands."                                                                                           
                                                                                                                                
Ms. Frasca  acknowledged Senator  Bunde's comment  as being  "a good                                                            
point."                                                                                                                         
                                                                                                                                
Co-Chair  Wilken  commented  that  the  accounting  mechanism  being                                                            
presented in this legislation  creates "tension …between a dedicated                                                            
fund and  the concept that  the cost causer  is the cost payer."  He                                                            
voiced comfort  with the current system  as he pointed out  that the                                                            
Legislature  has the  ability to  access excess  money in  dedicated                                                            
funds or to  reappropriate funds elsewhere  were it considered  that                                                            
the  funds   were  being  used  "unwisely."   He  opined   that  the                                                            
Legislature  has been  "driven" in  recent years  to "square  up the                                                            
need with the revenue stream."                                                                                                  
                                                                                                                                
Co-Chair Wilken voiced  appreciation for the efforts exerted on this                                                            
legislation,  and agreed that work  on it could continue  during the                                                            
interim.                                                                                                                        
                                                                                                                                
The bill was HELD in Committee.                                                                                                 
                                                                                                                                
                                                                                                                                
     CS FOR SENATE BILL NO. 303(RES)                                                                                            
     "An Act relating to  the Big Game Commercial Services Board and                                                            
     to   the  regulation   of  big   game  hunting   services   and                                                            
     transportation services;  and providing for an effective date."                                                            
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken explained  that this legislation is sponsored by the                                                            
Senate Rules  Committee at the request  of the Legislative  Budget &                                                            
Audit Committee  (LB&A). Continuing, he stated that  the legislation                                                            
would set  up a Board  system for  the guiding  industry similar  to                                                            
what had been  established in the  past. He noted that the  bill was                                                            
held  in Committee  to  allow for  public  testimony,  to allow  the                                                            
Division of  Occupational Licensing  in the Department of  Community                                                            
and  Economic  Development  to  testify,  and  to  address  Members'                                                            
concerns raised  during the initial  hearing on the bill.  He stated                                                            
that the Members'  packets contain  a Division of Legislative  Audit                                                            
Report,  dated October  16,  2003, and  he pointed  out  that CS  SB
303(RES), Version 23-LS1655\H is before the Committee.                                                                          
                                                                                                                                
REPRESENTATIVE  RALPH  SAMUELS, Chair,  Legislative  Budget &  Audit                                                            
Committee, explained that  the bill was generated as a result of the                                                            
aforementioned  audit's findings. He also stated that  consideration                                                            
has been provided  to Senator Olson's air taxi service  concerns. He                                                            
noted that  the definition  of air  taxi services,  as derived  from                                                            
current State  statute, is detailed  in Sec. 32, (10) page  22, line                                                            
four of the bill as follows.                                                                                                    
                                                                                                                                
     (10)  [(9)} "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                                                                                               
                (A) on nonstop flights between airports listed in                                                               
     the Alaska  supplement to the  Airmen's Guide published  by the                                                            
     Federal Aviation Administration; or                                                                                        
                (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                                                                                       
                     (i) charge more than the usual tariff or                                                                   
     charter  rate  for the  carriage  of  big game  hunters,  their                                                            
      equipment, or big game animals harvested by hunters; or                                                                   
                     (ii) advertise transportation services or big                                                              
     game hunting services  to the public; in this sub-subparagraph,                                                            
     "advertise"  means soliciting big game hunters  to be customers                                                            
     of  an air  taxi operator  or air  carrier for  the purpose  of                                                            
     providing air transportation  to, from, or in the field through                                                            
     the use of print or  electronic media, including advertising at                                                            
     trade  shows,  or the  use of  hunt  broker services  or  other                                                            
     promotional services.                                                                                                      
                                                                                                                                
Representative  Samuels stated  that Penn Air,  an air taxi  service                                                            
provider  which  serves  the  Cold  Bay  region  of  the  State  and                                                            
transports bear hunters  in the spring or fall as the hunt season is                                                            
open, is an example  of a company whose service to  big game hunters                                                            
is an incidental portion  of their business. As such, he noted, Penn                                                            
Air,  which does  not advertise  its service  to  hunters, would  be                                                            
exempt from the proposed legislation, per this definition.                                                                      
                                                                                                                                
Representative  Samuels  clarified;  however, that  the legislation                                                             
would  apply  to  an  air taxi  service  whose  "sole  job"  was  to                                                            
transport hunters to a site.                                                                                                    
                                                                                                                                
Representative  Samuels  stated  that the  Audit  was  clear in  its                                                            
determination  that  the  re-establishment  of  the Board  would  be                                                            
beneficial to big game  hunting as the expertise of a Board would be                                                            
preferred to having  the Division of Occupational  Licensing address                                                            
issues.                                                                                                                         
                                                                                                                                
Senator Olson  asked for  further verification  that the bill  would                                                            
not  impact  air  taxi service  incidentals   such as  the  size  of                                                            
identification numbering on the aircraft.                                                                                       
                                                                                                                                
Representative Samuels  expressed that other than establishing a big                                                            
game board and removing  those responsibilities from the Division of                                                            
Occupational Licensing,  nothing is altered in regards  to small air                                                            
taxi service  operators. He  stressed that  it is not the intent  of                                                            
the Board to impact air taxi service operations.                                                                                
                                                                                                                                
Senator Bunde  stated that while transporting hunters  and fishermen                                                            
might not be the  primary business of some air taxi  operators, that                                                            
business  could   not  be  summarily  characterized   as  incidental                                                            
because, at times, that  business could amount to 50 percent of some                                                            
air taxi's business.                                                                                                            
                                                                                                                                
Representative  Samuels clarified that this legislation  is specific                                                            
to big game hunting  and therefore transporting fishermen  would not                                                            
be  a  factor.   He  determined  that   because  big  game   hunting                                                            
transportation  is  limited  to  approximately  mid-August   through                                                            
October,  it would  be difficult  for a  year-round  operator to  be                                                            
affected. He expressed  that the operators who would  be affected by                                                            
this  legislation  are  those "who  set  up camp,  they  don't  call                                                            
themselves  a guide,  but" nonetheless,  he continued,  they  supply                                                            
packers,  air transportation,  and camps.  However, he noted,  "they                                                            
are not technically a guide,"  and thus, he continued, these are the                                                            
people  this legislation  would be  targeting. He  declared that  it                                                            
would be  impossible, due  to the short period  of time involved  in                                                            
the  big game  hunting season,  for  year-round operating  air  taxi                                                            
service  to accumulate  the percentage  of time  that would  subject                                                            
them to the conditions of this legislation                                                                                      
                                                                                                                                
Senator  Bunde agreed,  but  stated that  while he  understands  the                                                            
intent  of the  bill,  he would  desire  to explore  its  unintended                                                            
consequences. He reminded  that air taxi services that operate float                                                            
planes  or those  that  are short-term  operators  who specifically                                                             
transport and  advertise to hunters, do not operate  on a year-round                                                            
basis,  and  therefore,  he  stated,   could  be  affected  by  this                                                            
legislation.  However, he agreed that  were the air taxi  service to                                                            
also  rent  equipment  and provide  guides,  packers  and  cooks  in                                                            
addition  to the transportation,  then  they should  adhere to  this                                                            
legislation,  as  they  would  qualify   for  the guide   definition                                                            
criteria.  He questioned  whether  an air  taxi service  that  rents                                                            
equipment  and transports  hunters and their  game meat, would  meet                                                            
the definition of a guide.                                                                                                      
                                                                                                                                
Representative  Samuels reiterated  that the  legislation "does  not                                                            
actually change  anything" except that, with the establishment  of a                                                            
Big Game  Board, guides  would be  required to  work with the  Board                                                            
instead of with the Division  of Occupational Licensing. He stressed                                                            
that no rules or other regulations would be changed.                                                                            
                                                                                                                                
Senator  Bunde responded  that, while  laws might  not change,  they                                                            
would be "interpreted far more strictly" by the Big Game Board.                                                                 
                                                                                                                                
Senator  Dyson asked  whether, in  addition to  air transportation,                                                             
other  modes of  surface transportation  such  as  boats or  horses,                                                            
would be affected by this legislation.                                                                                          
                                                                                                                                
Co-Chair  Wilken interjected  that there is  concern regarding  boat                                                            
transportation,  specifically  whether boats  used to transport  and                                                            
lodge hunters, would, as  a result of this legislation, qualify as a                                                            
camp.                                                                                                                           
                                                                                                                                
Representative  Samuels  reiterated that,  "whatever  it is now,  is                                                            
what it would be" were this legislation enacted.                                                                                
                                                                                                                                
Co-Chair Wilken pointed  out that communications from members of the                                                            
Alaska Outdoor  Council (AOC) indicate  that they either  support or                                                            
do  not support  this  bill. Therefore,  he  asked whether  AOC  has                                                            
submitted a formal position on this bill.                                                                                       
                                                                                                                                
Representative  Samuels   replied  that  the  organization  has  not                                                            
provided a definitive position.                                                                                                 
                                                                                                                                
Co-Chair  Wilken stated that  while the association  might  not have                                                            
presented a formal position,  a common concern is that the operation                                                            
might return  to the  "good ol'  boys' club" approach  that  was the                                                            
norm in the  1990s. This concern,  he surmised, could be  one of the                                                            
reasons this legislation has been developed.                                                                                    
                                                                                                                                
Senator Bunde  asked whether the Lake Hood Air Taxi  Association has                                                            
commented on the bill.                                                                                                          
                                                                                                                                
Representative  Samuels  responded  that  no  information  has  been                                                            
forthcoming from that or  any other air taxi organizations; however,                                                            
he noted, numerous air  taxi operators and guides have weighed in on                                                            
the issue.                                                                                                                      
                                                                                                                                
BRIAN WILSON, Southeast  Alaska Boat Transporter, noted that many of                                                            
his questions  have  been answered  by the discussion.  However,  he                                                            
opined  that  the  direction  of  the  bill  has  shifted  from  the                                                            
recommendations  of  the audit  report in  that the  Big Game  Guide                                                            
Board could restrict  usage areas by saying that a  transporter must                                                            
have  a  permit  to  utilize  certain  areas.  He  shared  that  the                                                            
definition  of a boat  transporter  is one who  transports a  hunter                                                            
from Point A to Point B.  Therefore, he voiced concern that the bill                                                            
might restrict  transporters'  ability to  could deliver hunters  to                                                            
certain areas.                                                                                                                  
                                                                                                                                
Representative  Samuels responded  that exclusive use areas  are not                                                            
addressed in this bill.                                                                                                         
                                                                                                                                
Mr. Wilson identified the  exclusive use area language to be located                                                            
in Section 29,  Subsection (g), on page 19, lines  eight through 13,                                                            
that reads as follows.                                                                                                          
                                                                                                                                
          (g) At least 60 days before providing transportation                                                                  
     services  to, from, or in an  area as may be determined  by the                                                            
     board, a transporter  shall inform the department, in person or                                                            
     by  registered  mail on  a registration  form  provided by  the                                                            
     department,    that   the  transporter    will   be   providing                                                            
     transportation  services  to,  from, or  in the  use area.  The                                                            
     board   may  establish   transporter   use   areas  and   adopt                                                            
     regulations   to  implement  this  subsection,   as  the  board                                                            
     considers necessary.                                                                                                       
                                                                                                                                
Co-Chair Wilken stated that this concern would be addressed.                                                                    
                                                                                                                                
Mr. Wilson  also requested  that due to the  fact that transporters                                                             
would  be  affected  by  the  actions   of  the  Guide  Board,  that                                                            
consideration  to given to providing them "equal representation"  on                                                            
the Board.  He recommended  that the Board  have two guides  and one                                                            
transporter in its membership.                                                                                                  
                                                                                                                                
Co-Chair  Wilken pointed out  that the composition  of the  Board is                                                            
identified on page two, Section 3 (b) as follows.                                                                               
                                                                                                                                
        (b)The board consists of seven members as follows:                                                                      
                (1) two members who are current, licensed registered                                                            
     guide-outfitters;                                                                                                          
           (2) one member who is a licensed transporter;                                                                        
                (3) one member of the Board of Game who is chosen by                                                            
     the Board  of Game and who does  not hold a guide or  transport                                                            
     license;                                                                                                                   
                (4) two members who represent private landholders                                                               
     affected   by  guided  hunting  activities  or  transportation                                                             
     services  and  who do  not hold  a  license issued  under  this                                                            
     chapter; and                                                                                                               
                (5) one public member.                                                                                          
                                                                                                                                
Co-Chair   Wilken   understood   therefore   that  Mr.   Wilson   is                                                            
recommending that the Board  membership be changed to consist of two                                                            
rather than one transport member.                                                                                               
                                                                                                                                
Representative  Samuels  agreed  with  the suggestion  to  have  two                                                            
transporters on the Board.                                                                                                      
                                                                                                                                
Mr.  Wilson  stated  that  another  point  of  concern  regards  the                                                            
definition of transporter;  specifically he continued, as it has the                                                            
appearance of  incorporating "a no-compete clause."  Furthermore, he                                                            
stated that in his business  as a boat transporter, his boat is used                                                            
as a camp. He  noted Representative Samuels' earlier  remarks, which                                                            
specified there to be no  change in the existing law in this regard;                                                            
however, he voiced  concern that the bill implies  that he could not                                                            
provide a camp. He suggested that this issue be clarified.                                                                      
                                                                                                                                
Representative Samuels  reiterated that transporter language remains                                                            
unchanged and therefore reflects current statute.                                                                               
                                                                                                                                
Mr. Wilson acknowledged Representative Samuels comment.                                                                         
                                                                                                                                
Senator  Bunde observed  that  even  though current  statutes  might                                                            
exist,  their  language   should  be  updated  to  reflect   current                                                            
situations.                                                                                                                     
                                                                                                                                
JOE   KLUTSCH,   Representative,    Alaska   Professional    Hunters                                                            
Association,  testified via teleconference  from an offnet  site and                                                            
informed the Committee  that the Association's members  support this                                                            
legislation.                                                                                                                    
                                                                                                                                
Mr. Klutsch informed  the Committee that his "extensive  background"                                                            
in the guiding  industry has afforded  him the opportunity  to speak                                                            
from experience  regarding the legislative  history and the  history                                                            
of the allocation of big  game hunting resources. He stated that the                                                            
justifications  for instituting the  Big Game Board "are  simple" as                                                            
the  primary reason  to  establish  the Board  would  be to  provide                                                            
interaction between the  various regulatory agencies. Continuing, he                                                            
advised that the  issues "are infinitely more complex  now than they                                                            
were in the  1980's and pre-ANILCA  (Alaska National Interest  Lands                                                            
Conservation  Act)," as there are  now five State and seven  federal                                                            
entities  involved in the  permitting process  of these activities.                                                             
Continuing,  he noted that  the "lack of  coordination" between  the                                                            
agencies results  in information and  regulatory "disconnect"  which                                                            
requires hunters to adhere  to different timelines and requirements.                                                            
He declared  that  were a  Board established,  open  discussions  to                                                            
coordinate  efforts and respond to  situations, in a timely  manner,                                                            
could  occur.  Furthermore,  he noted,  a  Board could  develop  and                                                            
retain institutional  knowledge rather  than information  being lost                                                            
as personnel  and administrations  change.  Ultimately he  stressed,                                                            
wildlife  resources  would  suffer  were the  current  situation  to                                                            
continue unchanged.                                                                                                             
                                                                                                                                
Mr. Klutsch  contended that  the establishment  of a Big Game  Board                                                            
would  be  beneficial  to  users,  guides,  transporters,   and  the                                                            
resources.  Furthermore,  he opined,  a lack  of proper regulations                                                             
would negatively  affect the resources  and all the users  including                                                            
subsistence  users. He  encouraged the  Members to  move this  "good                                                            
piece of legislation" forward.                                                                                                  
                                                                                                                                
PAUL JOHNSON,  Registered Guide, testified  via teleconference  from                                                            
an offnet site  and informed the Committee that he  has been a guide                                                            
in the Elfin Cove area  in excess of 30 years. In addition, he noted                                                            
that he  had been a member  of the task  force that established  the                                                            
original   Big  Game  Board.   Furthermore,   he  noted  that   this                                                            
legislation,  with  a few  changes,  is similar  to  the  guidelines                                                            
established regarding  the original Board. He advised  the Committee                                                            
that the original  Board established a Commercial  Services Board to                                                            
address the  continuing concern  regarding  the "good ol' boy"  club                                                            
and  had,  in effect,  identified  the  various  components  of  the                                                            
industry such as the transporters and the guides.                                                                               
                                                                                                                                
Mr.  Johnson  declared   that  the  Board  was  terminated   due  to                                                            
differences  of opinions relating  to restricted guide areas  rather                                                            
than as the  result of concerns over  transporters or the  "good ol'                                                            
boys" club. He  specified that other than the issue  regarding guide                                                            
areas, the original board  had "a clean audit" and was working well.                                                            
                                                                                                                                
Mr.  Johnson  opined  that  this  bill  does  not  include  language                                                            
regarding  restricted  guide  areas.  He stated  that  "the  overall                                                            
issue" is  to protect the  continuation of  this $150 million  State                                                            
industry. He noted that  were this Board not reestablished, then the                                                            
industry,  which he  noted pays  more taxes  to the  State than  any                                                            
other  industry,  would  be  negatively  impacted.   Continuing,  he                                                            
declared that  this industry does  not request advertising  funding,                                                            
is not  a burden to  the State,  and produces  more benefits  to the                                                            
State than  any other industry. He  asked the Committee to  help the                                                            
industry by  re-establishing the Board  as he declared that  the ten                                                            
years since  the board was terminated  have negatively impacted  the                                                            
industry.                                                                                                                       
                                                                                                                                
Mr. Johnson agreed with  Senator Bunde that the industry has changed                                                            
and that regulations  should be updated  to continue to protect  the                                                            
resources. He voiced no  preference regarding the Board make-up, but                                                            
confirmed  that  the  bill  would  not  change current  regulations                                                             
pertaining   to  the  definitions   of   transporters,  guides,   or                                                            
incidentals.  He stated that these  issues were "hashed out"  over a                                                            
three-month period  by the Task Force that established  the original                                                            
Board. He noted  that when the ""sunset" legislation  was before the                                                            
Legislature, continuation  of the Board was widely  supported in the                                                            
House of  Representatives  but failed  due to its  lack of  progress                                                            
through the Committee process  in the Senate. He urged the Committee                                                            
to  pass  this legislation,   as he  attested,  it  is "desperately                                                             
needed."                                                                                                                        
                                                                                                                                
HENRY   TIFFANY,    Registered   Master    Guide,   testified    via                                                            
teleconference  from an offnet site, and urged passage  of the bill,                                                            
as it  would benefit  the  resource, the  hunters,  and the  guiding                                                            
industry.  He echoed  previous  testimony regarding  the  industry's                                                            
contribution  of more than $150 million  to the State's economy.  He                                                            
noted that the  guiding industry is in desperate need  of assistance                                                            
and  this "is  one  of the  first steps  that  should  be taken"  to                                                            
address the industry's needs.                                                                                                   
                                                                                                                                
Senator Olson  asked whether  Mr. Tiffany is  speaking on behalf  of                                                            
any guiding association.                                                                                                        
                                                                                                                                
Mr. Tiffany  clarified  that these  are his personal  comments  as a                                                            
concerned citizen, constituent, and Master Guide.                                                                               
                                                                                                                                
RICK   URION,  Director,   Division   of   Occupational   Licensing,                                                            
Department  of Community  and Economic Development  agreed  with the                                                            
testimony supporting  the bill, as  he attested "this is  definitely                                                            
an area  that needs  some attention."  He shared  that his  Division                                                            
currently addresses  complaints from "disgruntled"  Big Game Hunting                                                            
customers,  and he shared that the  Department is frustrated  by the                                                            
fact  that  there is  no  avenue through  which  to  address  issues                                                            
raised.  He  stated  that  the  Division's  memorandum  to  Co-Chair                                                            
Wilken's office, dated  April 5, 2004 [copy on file] was compiled by                                                            
the Division's  Anchorage  Investigative Office,  which handles  the                                                            
complaints, in  order to offer suggestions regarding  how to address                                                            
concerns.                                                                                                                       
                                                                                                                                
Mr.  Urion declared  that  every  hunt trip  should  be  bound by  a                                                            
written contract  because, he noted, the primary customer  complaint                                                            
is that their hunting agreement  was not upheld. He pointed out that                                                            
the Division  is currently unable  to address "simple" disciplinary                                                             
measures  for  such things  as  same day  airborne  hunting,  wanton                                                            
waste, and closed season hunting violations.                                                                                    
                                                                                                                                
Mr. Urion  also  noted that  the Board,  rather  than the  Division,                                                            
could  better develop  applicable  definitions, as  attested by  the                                                            
fact  that  due to  a disagreement   between  the Division  and  the                                                            
Department  of Public  Safety,  it  took four  months  to develop  a                                                            
definition  of the  term "in the  field." Furthermore,  he  stressed                                                            
that the Board could more  appropriately implement required laws and                                                            
information.  To clarify  this point,  he recounted  a situation  in                                                            
which a  guide had a permanent  home by a  lake on remote  property,                                                            
which  was accessible  only by  floatplane or  boat. Continuing,  he                                                            
disclosed that the question  of whether this home was "in the field"                                                            
arose,  and contrary  to Mr. Urion's  opinion, the  ruling was  that                                                            
because it  was a permanent  home rather than  a camp, it was  ruled                                                            
"not in the field."  He attested that situations like  this are very                                                            
frustrating to  the Division. In summary, he stated  that whether or                                                            
not a Board were established,  the Division concurs with the guiding                                                            
industry's  position that  assistance  must be  provided to  address                                                            
guidelines,  enforcement,  and  communication  between  the  various                                                            
enforcement agencies.                                                                                                           
                                                                                                                                
Senator Bunde  asked whether the Division's law enforcement  concern                                                            
lies with  its inability  to remove  violator's  guide licenses.  He                                                            
noted  that   law  enforcement  officials   enforce  and   prosecute                                                            
violations.                                                                                                                     
                                                                                                                                
Mr.  Urion  affirmed  that the  Department  of  Public  Safety  does                                                            
conduct the  majority of  the field enforcement.  He clarified  that                                                            
the Division is limited  to issuing licenses and could only remove a                                                            
license upon the  determination that it was issued  under fraudulent                                                            
circumstances.                                                                                                                  
                                                                                                                                
Mr.   Urion  reiterated   that   the  Division   receives   numerous                                                            
"justifiable"  complaints   to  which,  they  currently,  could  "do                                                            
nothing about."                                                                                                                 
                                                                                                                                
Senator  Bunde  agreed  that  some enforcement  in  this  regard  is                                                            
required.  He stated  that the Department  of Public  Safety  does a                                                            
good job of field enforcement.                                                                                                  
                                                                                                                                
Senator  Bunde asked  whether the  Department's  fiscal note,  while                                                            
small,  could be  supported by  raising  the cost  of guide  license                                                            
fees.                                                                                                                           
                                                                                                                                
Mr. Urion  responded  that, were  a Board established,  its  expense                                                            
would be  offset by an  increase in Guide  licensing fees,  as State                                                            
law   requires  that   expenses   "associated   with  regulating   a                                                            
profession" be supported in such a manner.                                                                                      
                                                                                                                                
Senator Hoffman  asked regarding Board member appointments  and term                                                            
lengths.                                                                                                                        
                                                                                                                                
                                                                                                                                
SFC 04 # 85, Side B 09:52 AM                                                                                                    
                                                                                                                                
                                                                                                                                
Senator  Hoffman   also  suggested   that  subsistence  hunters   be                                                            
represented  on  the  Board,  as they  would  be  affected  by  this                                                            
legislation.                                                                                                                    
                                                                                                                                
Representative  Samuels  responded that,  as routine,  the  Governor                                                            
would make the Board appointments.                                                                                              
                                                                                                                                
Senator Hoffman  observed that this is not explicitly  stated in the                                                            
bill.                                                                                                                           
                                                                                                                                
Representative  Samuels noted that the term timeframes  are also not                                                            
specified  in  the  legislation,   and  that  he  would  support  an                                                            
amendment specifying  staggered, three-year  terms if the  Committee                                                            
so desired.  Otherwise, he  surmised that  the normal Board  process                                                            
would apply in this situation.                                                                                                  
                                                                                                                                
Senator Hoffman  furthered his request  that subsistence  hunters be                                                            
represented on the Board.                                                                                                       
                                                                                                                                
Representative  Samuels pointed out that the Board  make-up proposed                                                            
in the Senate Resources  committee substitute would consist of seven                                                            
members, and  he commented that the  subsistence hunter issue  could                                                            
be  resolved  via  the private  landholder  member  representation.                                                             
Continuing,  he noted  that during  the Senate  Resources  Committee                                                            
hearing,  Native Corporation  representation  had been discussed  as                                                            
their lands are  utilized by hunters; however, he  continued, it was                                                            
determined that the specification  that the two members representing                                                            
private  landholders on  the Board,  would suffice  in this  regard.                                                            
While stressing  that the  Board should remain  balanced, he  agreed                                                            
with the recommendation  that the transporter representation  should                                                            
match that  of the guide representation,  which is currently  set at                                                            
two.                                                                                                                            
                                                                                                                                
Senator  Hoffman pointed  out that a Native  Corporation  landholder                                                            
representative might not be a subsistence user.                                                                                 
                                                                                                                                
Co-Chair Wilken  noted that the question regarding  who appoints the                                                            
members  and the composition  of  their initial  and on-going  terms                                                            
should be further clarified.                                                                                                    
                                                                                                                                
HENRY  WEBB,  Staff  to  Representative   Ralph  Samuels  and  Aide,                                                            
Legislative  Budget & Audit Committee,  informed the Committee  that                                                            
the appointments and the  terms would follow established and State's                                                            
standard board protocol for appointment and terms.                                                                              
                                                                                                                                
Co-Chair Wilken asked for  specifics such as whether the terms would                                                            
be staggered.                                                                                                                   
                                                                                                                                
Mr. Webb understood  that the appointments  would be for  four-year,                                                            
staggered terms.                                                                                                                
                                                                                                                                
Co-Chair  Wilken  asked how  the  initial  staggering  of the  newly                                                            
created board of seven people would operate.                                                                                    
                                                                                                                                
Mr. Urion pointed out that  that this information is located in Sec.                                                            
41, page 26,  beginning on line 29  and continuing through  page 27,                                                            
line 9, as follows.                                                                                                             
                                                                                                                                
          Sec. 41. The uncodified law of the State of Alaska is                                                                 
     amended by adding a new section to read:                                                                                   
                INITIAL APPOINTMENT OF MEMBERS OF THE BIG GAME                                                                  
     COMMERCIAL  SERVICES BOARD. (a)  Notwithstanding AS  08.54.591,                                                            
     added  by sec. 3 of this Act,  and AS 39.05.055, the  initially                                                            
     appointed  members of  the Big Game  Commercial Services  Board                                                            
     shall  be appointed by  the governor to  terms as follows:  one                                                            
     member  serves for one year,  two members serve for  two years,                                                            
     two members  serve for three  years, and two members  serve for                                                            
     four years.                                                                                                                
                (b) The governor shall appoint the initial members                                                              
     of  the Big Game  Commercial  Services Board,  as provided  for                                                            
     under  AS 08.54.591(a),  added by  sec. 3 of  this Act,  before                                                            
     December 1, 2004.                                                                                                          
                (c) The governor shall appoint persons who are                                                                  
     active,   licensed  registered  guides   at  the  time  of  the                                                            
     appointment  to  fill the  initial registered  guide-outfitter                                                             
     positions on the Big Game Commercial Services Board.                                                                       
                                                                                                                                
Conceptual  Amendment #1: This amendment  alters the make-up  of the                                                            
seven-member  board  as specified  in Sec.  3 (b)(2),  on page  two,                                                            
beginning  on line  six by  specifying  that there  be two  licensed                                                            
transporters on the Board instead of one.                                                                                       
                                                                                                                                
This conceptual  amendment further changes the make-up  of the Board                                                            
by reducing the private  landholder Board members from two to one as                                                            
noted in Sec. 3 (b) (4) on page two, line nine.                                                                                 
                                                                                                                                
These proposed language changes would therefore read as follows.                                                                
                                                                                                                                
     (b) The board consists of seven members as follows:                                                                        
          (1) two members who are current, licensed registered                                                                  
     guide-outfitters;                                                                                                          
          (2) two members who are licensed transporters;                                                                        
          (3) one member of the Board of Game who is chosen by the                                                              
     Board      of Game and who does not hold a guide or transport                                                              
     license;                                                                                                                   
          (4) one member who represents private landholders                                                                     
     affected   by  guided  hunting  activities  or  transportation                                                             
     services  and who  does not hold  a license  issued under  this                                                            
     chapter; and                                                                                                               
          (5) one public member.                                                                                                
                                                                                                                                
Co-Chair  Wilken  moved  to  adopt Amendment  #1.  He  objected  for                                                            
discussion.                                                                                                                     
                                                                                                                                
Senator Hoffman suggested  that there be one rather than two members                                                            
representing  guide- outfitters as  specified in (b)(1),  and that a                                                            
user group be incorporated into the Board's make-up.                                                                            
                                                                                                                                
Co-Chair  Green voiced that  this is an  "industry-oversight  board"                                                            
rather than  a user-oversight  board. Furthermore,  she stated  that                                                            
the  Board  of  Game   might  more  appropriately  address   Senator                                                            
Hoffman's concerns as it currently oversees user groups.                                                                        
                                                                                                                                
Representative  Samuels agreed with Co-Chair Green's  comments as he                                                            
asserted  that this  Board would  address  such things  as codes  of                                                            
ethics,  complaints  from clients,  and  standards  for the  guiding                                                            
industry. He noted  that it has been argued that the  inclusion of a                                                            
public member,  who might know little about Big Game  issues, on the                                                            
previous  Big Game Board  resulted in some  problems. Therefore,  he                                                            
suggested that  the Board might operate smoother were  that position                                                            
eliminated to allow for two transporter members on the Board.                                                                   
                                                                                                                                
Without  objection, Co-Chair  Wilken  withdrew his  motion to  adopt                                                            
Amendment #1.                                                                                                                   
                                                                                                                                
Co-Chair Green  asked Mr. Urion whether,  aside from the  Division's                                                            
concern  about contracts,  there are  any other  industry issues  or                                                            
violations  of law that should be  addressed to assist the  Division                                                            
in its  efforts to  manage this  industry. She  voiced that  firearm                                                            
issues  are  already addressed  by  the  State  and that  the  guide                                                            
standards should  meet the level expected  of a private citizen.  In                                                            
summary, she declared  that she is not convinced that  another level                                                            
of oversight should be implemented.                                                                                             
                                                                                                                                
Mr. Urion agreed  that firearm violations  are already addressed  in                                                            
law,  however, he  continued  that there  is nothing  in  regulation                                                            
currently that could allow  the Division to remove or deny a Guide's                                                            
license  were  he or  she  convicted  of  a serious  crime  such  as                                                            
domestic violence.                                                                                                              
                                                                                                                                
Co-Chair  Wilken noted that  it would be  beneficial to the  sponsor                                                            
were he to review the legislation  in order to determine whether the                                                            
concerns  raised   by  the  Division  of  Occupational  Licensing's                                                             
investigative  staff in the aforementioned memorandum  are addressed                                                            
by this legislation.                                                                                                            
                                                                                                                                
Co-Chair  Green   understood  therefore  that  the  concerns   being                                                            
addressed are  the "views" of the Division rather  than the concerns                                                            
of those involved in the industry.                                                                                              
                                                                                                                                
Co-Chair Wilken ordered the bill HELD in Committee.                                                                             
                                                                                                                                
                                                                                                                                
     SENATE RESOLUTION NO. 3                                                                                                    
     Relating to commemoration of Senator Frank R. Ferguson and                                                                 
     other distinguished Senators.                                                                                              
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken  stated that this  bill would allow a commemorative                                                             
panel to  be placed  outside the  Senate Finance  Committee Room  in                                                            
honor of Senators  who are specially recognized by  the Alaska State                                                            
Senate. Furthermore, he  continued, it would allow for the inclusion                                                            
of Senator Frank Ferguson's name on the panel.                                                                                  
                                                                                                                                
Senator Olson,  the bill's sponsor,  shared that this bill  is being                                                            
introduced  for  two  purposes:  the first  would  be  to  recognize                                                            
recently decreased Senator  Frank Ferguson, "one of the State's most                                                            
skilled  legislators,"  for his contribution  to  the State and  its                                                            
citizens;  and  secondly,  to  acknowledge   that  the  options  for                                                            
honoring  individuals such  as naming  meeting rooms  after them  is                                                            
limited  in the  Capitol  building.  Therefore, he  continued,  this                                                            
resolution  would allow  for  a large plague  to  be displayed  that                                                            
would recognize  distinguished senators who have contributed  to the                                                            
State.                                                                                                                          
                                                                                                                                
Senator Olson displayed  an example of the proposed plague [copy not                                                            
provided].                                                                                                                      
                                                                                                                                
Co-Chair Wilken, noting  that the bill has a zero fiscal note, asked                                                            
whether the individuals  would pay for the inclusion  of their name.                                                            
                                                                                                                                
Senator  Olson stated  that  either  that or  private contributions                                                             
would provide the necessary funding.                                                                                            
                                                                                                                                
Amendment #2:  This amendment deletes "on" and inserts  "at" on page                                                            
two,  line  24,  and  deletes  "wall  outside   the  Senate  Finance                                                            
Committee Room"  and inserts "place inside the Capitol  Building" on                                                            
page two, line 24.                                                                                                              
                                                                                                                                
Senator Olson offered Amendment #2.                                                                                             
                                                                                                                                
Co-Chair Wilken objected for discussion.                                                                                        
                                                                                                                                
Senator Olson reviewed how the language would read.                                                                             
                                                                                                                                
Co-Chair Wilken removed his objection.                                                                                          
                                                                                                                                
There being no further objection, Amendment #2 was ADOPTED.                                                                     
                                                                                                                                
Amendment #1: This amendment  inserts the following language on page                                                            
two, following line 22.                                                                                                         
                                                                                                                                
     "WHEREAS the Alaska  State Senate has had a significant role in                                                            
     the rich history of  the state and the progress of its citizens                                                            
     through  the  individual  and collective  achievements  of  its                                                            
     members;                                                                                                                   
                                                                                                                                
     WHEREAS other senators also merit special recognition for past                                                             
     accomplishments;                                                                                                           
                                                                                                                                
Senator Olson moved for the adoption of Amendment #1.                                                                           
                                                                                                                                
Co-Chair Wilken objected for discussion.                                                                                        
                                                                                                                                
Senator Olson read the proposed language.                                                                                       
                                                                                                                                
Co-Chair Wilken removed his objection.                                                                                          
                                                                                                                                
There being no further objection, Amendment #1 was ADOPTED.                                                                     
                                                                                                                                
Co-Chair Green  asked whether a resolution would be  required to add                                                            
Senators' names  in the future or would they would  be automatically                                                            
added upon their death.                                                                                                         
                                                                                                                                
Senator Olson  responded that  the intent  is that additional  names                                                            
would be furthered via a Legislative Resolution.                                                                                
                                                                                                                                
Co-Chair  Green understood,  therefore, that  a resolution  would be                                                            
required in order to add another name to the plague.                                                                            
                                                                                                                                
Senator Olson  considered it to be  "unfair" to automatically  add a                                                            
Senator's name  upon their death,  as he argued, the purpose  of the                                                            
plague,  rather  than being  all-encompassing,   is to  honor  those                                                            
considered to have had distinguished service.                                                                                   
                                                                                                                                
Co-Chair Wilken qualified the question to be, how would one's name                                                              
be included on the plague.                                                                                                      
                                                                                                                                
Senator Bunde asked whether the inclusion would be posthumously.                                                                
                                                                                                                                
Co-Chair Wilken stated that further qualifying language should be                                                               
determined.                                                                                                                     
                                                                                                                                
Co-Chair Wilken ordered the bill HELD in Committee.                                                                             
                                                                                                                                
Adjournment                                                                                                                 
                                                                                                                                
Co-Chair Gary Wilken adjourned the meeting at 10:17 AM.                                                                         

Document Name Date/Time Subjects