Legislature(2021 - 2022)SENATE FINANCE 532

03/30/2022 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 204 HUNTING PERMIT/TAG AUCTIONS/RAFFLES TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 190 EXTEND REGULATORY COMMISSION OF ALASKA TELECONFERENCED
Moved CSSB 190(FIN) Out of Committee
<Bill Hearing Rescheduled from 03/28/22>
+= SB 193 EXTEND BOARD OF CHIROPRACTIC EXAMINERS TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- Public Testimony <Time Limit May Be Set> --
<Bill Hearing Rescheduled from 03/28/22>
                 SENATE FINANCE COMMITTEE                                                                                       
                      March 30, 2022                                                                                            
                         9:03 a.m.                                                                                              
                                                                                                                                
9:03:12 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Bishop called the  Senate Finance Committee meeting                                                                    
to order at 9:03 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Click Bishop, Co-Chair                                                                                                  
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
Senator Bill Wielechowski                                                                                                       
Senator David Wilson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Natasha von Imhof                                                                                                       
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Erin  Shine, Staff,  Senator  Click  Bishop; Madison  Govin,                                                                    
Staff   to  Senator   Micciche;  Kris   Curtis,  Legislative                                                                    
Auditor,  Alaska  Division  of  Legislative  Audit;  Senator                                                                    
Peter Micciche,  Sponsor; Sara Chambers,  Director, Division                                                                    
of  Corporations,   Business  and   Professional  Licensing,                                                                    
Department of Commerce,  Community and Economic Development;                                                                    
Emma  Torkelson,  Staff  to Senator  Revak;  Eddie  Grasser,                                                                    
Director, Division  of Wildlife Conservation,  Department of                                                                    
Fish and Game.                                                                                                                  
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Dr.  Brian  Larson,  Chair,  Alaska  Board  of  Chiropractic                                                                    
Examiners, Soldotna.                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 190    EXTEND REGULATORY COMMISSION OF ALASKA                                                                                
                                                                                                                                
          CSSB 190(FIN) was REPORTED out of committee with                                                                      
          three "do pass" recommendations, three "no                                                                            
          recommendation" recommendations and a new fiscal                                                                      
          impact note from the Department of Commerce,                                                                          
          Community and Economic Development.                                                                                   
                                                                                                                                
SB 193    EXTEND BOARD OF CHIROPRACTIC EXAMINERS                                                                                
                                                                                                                                
          SB 193 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
SB 204    HUNTING PERMIT/TAG AUCTIONS/RAFFLES                                                                                   
                                                                                                                                
          SB 204 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
SENATE BILL NO. 190                                                                                                           
                                                                                                                                
     "An Act extending the termination date of the                                                                              
     Regulatory Commission of Alaska; and providing for an                                                                      
     effective date."                                                                                                           
                                                                                                                                
9:03:52 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop  relayed that it  was the third  hearing for                                                                    
SB  190.   The  committee  had  opened   and  closed  public                                                                    
testimony  on  March  21,  2022.   It  was  the  committee's                                                                    
intention to  consider a  committee substitute  (CS), review                                                                    
the fiscal notes, and look to the will of the committee.                                                                        
                                                                                                                                
9:04:18 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:04:40 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair   Stedman  MOVED   to   ADOPT  proposed   committee                                                                    
substitute  for SB  190,  Work  Draft 32-LS1525\W  (Ambrose,                                                                    
3/25/22).                                                                                                                       
                                                                                                                                
Co-Chair Bishop OBJECTED for discussion.                                                                                        
                                                                                                                                
ERIN  SHINE,  STAFF,  SENATOR CLICK  BISHOP,  discussed  the                                                                    
changes reflected in the CS.  She explained that the changes                                                                    
between  the  previous  CS the  committee  had  adopted  and                                                                    
Version  W before  the  committee  was on  page  1, lines  8                                                                    
through  11.  The  change  added  intent  language  for  the                                                                    
Regulatory Commission  of Alaska (RCA) to  adopt regulations                                                                    
specific  to refuse  utilities,  to  provide for  sufficient                                                                    
public  notice, and  time for  rate  payers to  meaningfully                                                                    
comment on rate filings.                                                                                                        
                                                                                                                                
Senator Wielechowski commented  that he was glad  to see the                                                                    
intent language  included in the  proposed CS.  He discussed                                                                    
legislative  history  and  intent   pertaining  to  RCA.  He                                                                    
relayed   that  that   current   regulations  for   electric                                                                    
cooperatives would  be different  than the  regulations that                                                                    
would  be  needed  for electric  utilities,  in  large  part                                                                    
because  the coops  were owned  by the  rate payers  whereas                                                                    
refuse  coops were  for-profit  organizations. He  continued                                                                    
that  the intent  was to  ensure the  public had  sufficient                                                                    
notice and  an opportunity  to meaningfully comment  on rate                                                                    
findings,  in  particular  for the  simplified  rate  filing                                                                    
procedure.                                                                                                                      
                                                                                                                                
Co-Chair  Bishop  WITHDREW  his OBJECTION.  There  being  NO                                                                    
further OBJECTION, it was so ordered.  The CS for SB 190 was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
Senator Wielechowski  discussed a  new fiscal note  from the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
with  OMB  Component 2417.  The  appropriation  was for  the                                                                    
Regulatory  Commission  of  Alaska.  For  the  years  FY  23                                                                    
through FY  28, the appropriation was  for $9,735,900 funded                                                                    
by  regulatory surcharge  and  considered  to be  Designated                                                                    
General Funds (DGF).                                                                                                            
                                                                                                                                
Co-Chair  Stedman MOVED  to  report CSSB  190  (FIN) out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
CSSB 190(FIN) was  REPORTED out of committee  with three "do                                                                    
pass"    recommendations,    three    "no    recommendation"                                                                    
recommendations  and  a  new fiscal  impact  note  from  the                                                                    
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
9:07:55 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:08:54 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 193                                                                                                           
                                                                                                                                
     "An Act extending the termination date of the Board of                                                                     
     Chiropractic Examiners; and providing for an effective                                                                     
     date."                                                                                                                     
                                                                                                                                
9:08:56 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop  relayed that it  was the first  hearing for                                                                    
SB  193.  The  committees   intention was  to  hear  a  bill                                                                    
introduction,  take invited  and public  testimony, and  set                                                                    
the bill aside.                                                                                                                 
                                                                                                                                
9:09:24 AM                                                                                                                    
                                                                                                                                
MADISON  GOVIN, STAFF  TO SENATOR  MICCICHE, explained  that                                                                    
the CS for SB 193 would  extend the termination date for the                                                                    
Chiropractic Examiners Board for  two more years, making the                                                                    
new sunset date  June 30, 2024. The CS also  required that a                                                                    
report from  the legislative audit division  be submitted to                                                                    
the Legislative  Budget and Audit  Committee on  the board's                                                                    
compliance with  the audit. She  noted that  the legislative                                                                    
auditor was present to review the audit findings.                                                                               
                                                                                                                                
9:10:34 AM                                                                                                                    
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE AUDIT, relayed that  the Division of Legislative                                                                    
Audit  had  conducted  a  sunset   audit  of  the  Board  of                                                                    
Chiropractic Examiners  dated June  of 2021 (copy  on file).                                                                    
Overall, the  division had found  that the board  served the                                                                    
public's interest by conducting  meetings in accordance with                                                                    
state law,  by amending  certain regulations to  improve the                                                                    
chiropractic  profession,  and   effectively  licensing  and                                                                    
regulating chiropractic physicians.  Additionally, the audit                                                                    
found  that  one  board  member  did  not  comply  with  the                                                                    
statutory  requirements  for  appointments,  and  additional                                                                    
resources were needed to conduct  investigations in a timely                                                                    
manner.                                                                                                                         
                                                                                                                                
Ms. Curtis  continued that the division  recommended a five-                                                                    
year extension, which  was three years less  than the eight-                                                                    
year maximum  allowed for in statute.  The reduced extension                                                                    
recommendation was the result  of an issue identified during                                                                    
the audit  that may  impact the  board's ability  to protect                                                                    
the public. She noted that  the details related to the issue                                                                    
were   not  included   in  the   report   to  preserve   the                                                                    
confidentiality of an ongoing investigation.                                                                                    
                                                                                                                                
Ms.  Curtis referenced  page 5  of the  audit, which  showed                                                                    
standard licensing  information. As  of January  2021, there                                                                    
were 306  licensed chiropractors. She directed  attention to                                                                    
page  6  of  the  audit, which  showed  board  revenues  and                                                                    
expenditures  and   indicated  that  the   board  alternated                                                                    
between a deficit  and surplus during the  audit period. She                                                                    
continued that  according to  the Division  of Corporations,                                                                    
Business  and Professional  Licensing  (CBPL), the  deficits                                                                    
were within  a reasonable  range and  no fee  increases were                                                                    
recommended. Board fees were shown on page 7.                                                                                   
                                                                                                                                
Ms. Curtis listed two recommendations  listed on page 9. The                                                                    
division recommended that the  governor make appointments in                                                                    
accordance  with statutory  requirements.  The division  had                                                                    
found  that  the  board's  public   member  was  a  licensed                                                                    
Emergency  Medical Technician,  while  statute prohibited  a                                                                    
public  member from  having a  direct financial  interest in                                                                    
the healthcare  industry. The  second recommendation  was on                                                                    
page  10  and  recommended  that  CPBL's  director  allocate                                                                    
sufficient resources to ensure  that cases were investigated                                                                    
in a timely manner.                                                                                                             
                                                                                                                                
Ms.  Curtis informed  that there  had been  11 investigative                                                                    
cases that had been open for  over 180 days during the audit                                                                    
period, and  the division had  investigated all and  found 7                                                                    
of the cases related to  the same chiropractor. The division                                                                    
consolidated the  7 cases into  one case and had  found that                                                                    
there  were  four  unjustified periods  of  inactivity  that                                                                    
ranged  from  55  days  to 280  days.  According  to  CPBL's                                                                    
investigative   staff,  the   delays   were   a  result   of                                                                    
conflicting priorities and insufficient resources.                                                                              
                                                                                                                                
Ms.  Curtis identified  that  management's  response to  the                                                                    
audit  began  on page  21,  and  the commissioner  of  DCCED                                                                    
informed that the  department had moved forward  to hire two                                                                    
new investigative  positions to  improve the  timeliness and                                                                    
quality of  investigations. She relayed that  the governor's                                                                    
response  was   on  page  23.   The  governor   agreed  with                                                                    
recommendation  1 and  informed that  the board  member that                                                                    
had  not  complied  with  statutory  requirements  had  been                                                                    
removed.  The board  chair's response  was on  page 25.  The                                                                    
board  chair  did  not agree  with  the  proposed  five-year                                                                    
extension,  and  believed  the   board  was  being  unfairly                                                                    
penalized for the  audit findings that related  more to CBPL                                                                    
and  the  governor's office.  The  chair  was requesting  an                                                                    
eight-year extension.                                                                                                           
                                                                                                                                
Senator Wilson  asked Ms. Curtis about  recommendation 1 and                                                                    
the removal of  the board member. He asked if  the board had                                                                    
taken  action against  any licensee  that might  need to  be                                                                    
reconsidered.                                                                                                                   
                                                                                                                                
Ms.  Curtis stated  that the  division had  not specifically                                                                    
looked for a case like  Senator Wilson described and had not                                                                    
found anything to indicate there was one.                                                                                       
                                                                                                                                
Senator Olson  noted the recommendation was  for a five-year                                                                    
extension, while the bill proposed a two-year extension.                                                                        
                                                                                                                                
Ms.  Curtis was  confident  in the  five-year extension  but                                                                    
recognized   that   policymakers   might   have   additional                                                                    
concerns. She deferred to the will of the legislature.                                                                          
                                                                                                                                
9:15:27 AM                                                                                                                    
                                                                                                                                
Senator Hoffman  asked why the  sponsor was  putting forward                                                                    
an extension of two years,  when the Division of Legislative                                                                    
Audit had recommended a five-year extension.                                                                                    
                                                                                                                                
SENATOR  PETER MICCICHE,  SPONSOR, relayed  that he  had put                                                                    
forward  a  bill with  a  proposed  five-year extension.  He                                                                    
relayed  that he  generally agreed  with the  auditor unless                                                                    
there  was something  extreme  that was  an  outlier in  the                                                                    
audit.  He   had  not   felt  that   the  issues   with  the                                                                    
investigation  were  board-related  and  had  supported  the                                                                    
five-year extension.  The bill  had been amended  in another                                                                    
committee.                                                                                                                      
                                                                                                                                
Senator Olson asked  if Senator Micciche did  not agree with                                                                    
the proposed two-year extension.                                                                                                
                                                                                                                                
Senator Micciche stated  that if he felt there  was an issue                                                                    
that was an  extreme outlier that required  a shortened term                                                                    
below what  the department  suggested, he  would have  put a                                                                    
bill  in  with a  two-year  extension.  He would  leave  the                                                                    
matter for the  committee to decide. He  reiterated that the                                                                    
original  bill  was  introduced with  a  proposed  five-year                                                                    
extension,  which was  still below  the maximum.  He thought                                                                    
the  time   frame  would  allow   adequate  time   for  some                                                                    
corrections if some needed to occur.                                                                                            
                                                                                                                                
Co-Chair  Stedman  asked  for   discussion  as  to  why  the                                                                    
previous committee  had proposed  only a  two-year extension                                                                    
rather  than   the  five-year  extension  proposed   in  the                                                                    
original bill.  He reflected that past  short board renewals                                                                    
had  been  from significant  problems  to  warrant the  time                                                                    
frame.                                                                                                                          
                                                                                                                                
Senator  Micciche thought  there  was a  limit  to what  the                                                                    
division  could discuss,  and  in his  view  the matter  was                                                                    
unrelated to  the board. He  did not support  shortening the                                                                    
renewal to two years. He  did not identify board issues that                                                                    
would warrant only a two-year extension.                                                                                        
                                                                                                                                
9:18:51 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:19:11 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SARA CHAMBERS, DIRECTOR,  DIVISION OF CORPORATIONS, BUSINESS                                                                    
AND   PROFESSIONAL   LICENSING,  DEPARTMENT   OF   COMMERCE,                                                                    
COMMUNITY  AND  ECONOMIC  DEVELOPMENT,  explained  that  the                                                                    
division  appreciated  the  legislative  audit  process  and                                                                    
always found  something to learn  from or improve upon  as a                                                                    
result. She  informed that  the one item  of concern  in the                                                                    
investigation was  within the purview  of the  division. She                                                                    
could  not  discuss  specifics   of  the  investigation  but                                                                    
relayed  that the  matter had  caught the  attention of  the                                                                    
auditor because  of the unusual  nature of the  case. Delays                                                                    
were created because  of a lack of resources as  well as the                                                                    
unusual way  in which the  case was presented. The  case had                                                                    
warranted  work with  attorneys  and  potential due  process                                                                    
issues   with  the   respondent.   She   conveyed  that   in                                                                    
retrospect,  perhaps  the  case   could  have  been  handled                                                                    
better.                                                                                                                         
                                                                                                                                
Ms. Chambers  offered reassurance that the  case was ongoing                                                                    
and there  had been quite  a bit  of activity in  the months                                                                    
since the audit. She assured  that the division was learning                                                                    
along the  way with the  help of  the legal team,  to ensure                                                                    
that the  unusual case was  handled in the best  interest of                                                                    
the   people  of   Alaska.  She   cited  that   the  pending                                                                    
investigative  items were  more of  a process  issue than  a                                                                    
board  issue or  a public  safety  issue for  the people  of                                                                    
Alaska.                                                                                                                         
                                                                                                                                
9:22:28 AM                                                                                                                    
                                                                                                                                
Senator Olson considered the investigation  and asked if Ms.                                                                    
Chambers  anticipated  that   there  would  be  disciplinary                                                                    
action.                                                                                                                         
                                                                                                                                
Ms.  Chambers stated  that the  case  was ongoing  and in  a                                                                    
fact-finding phase,  and the board would  ultimately have to                                                                    
make the decision of whether to issue discipline.                                                                               
                                                                                                                                
Co-Chair Bishop  had a question  regarding Section 2  of the                                                                    
bill.  He  acknowledged  that  Ms.  Curtis  and  staff  were                                                                    
overworked. He  asked if the  division would have  the staff                                                                    
and the  time to  complete the additional  report referenced                                                                    
in the bill.                                                                                                                    
                                                                                                                                
Ms. Curtis  relayed that the  report would not be  an audit,                                                                    
but rather  a follow-up  that did not  need to  be conducted                                                                    
according with  standards and was  much more  efficient. She                                                                    
relayed that  the division had  done some  something similar                                                                    
for the  State Medical  Board, when  there had  been similar                                                                    
concerns related to an investigation  and details that could                                                                    
not be included  in the audit. She thought  the report would                                                                    
not be too burdensome and could be done fairly quickly.                                                                         
                                                                                                                                
9:24:43 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:25:59 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
DR.  BRIAN  LARSON,  CHAIR,  ALASKA  BOARD  OF  CHIROPRACTIC                                                                    
EXAMINERS, SOLDOTNA  (via teleconference), spoke to  SB 204.                                                                    
He discussed the  audit and the recommendation  of the audit                                                                    
committee to  shorten the renewal  period from 8 years  to 5                                                                    
years,  and the  subsequent  bill amendment  to shorten  the                                                                    
period to  2 years. He  appreciated the confidence  that the                                                                    
sponsor had in  requesting the extension be  for five years.                                                                    
He  mentioned the  investigation  that  had taken  excessive                                                                    
amounts  of time,  and the  board member  that was  actively                                                                    
working in the healthcare industry  and not able to serve as                                                                    
a public member of the board.                                                                                                   
                                                                                                                                
Dr.  Larson   detailed  that   the  Board   of  Chiropractic                                                                    
Examiners had four  working chiropractic physicians actively                                                                    
working in  the field as  well as  a public member,  and the                                                                    
commission of the board was  to protect the public. He noted                                                                    
that the  board had no opportunity  to evaluate applications                                                                    
for open board positions. There  was no point in the process                                                                    
in which the active board  had the opportunity to review the                                                                    
application  for  the  public   member  that  was  invalidly                                                                    
appointed. He  thought the same  thing had happened  8 years                                                                    
previously.                                                                                                                     
                                                                                                                                
Dr. Larson  thought it was  not realistic to hold  the board                                                                    
accountable for the public board  member that was appointed,                                                                    
nor  for  the  investigation.  He expanded  that  one  board                                                                    
member would  initially review cases  to determine  if there                                                                    
was a  violation of  statue or  regulation, beyond  which it                                                                    
had no  ability to  monitor or  determine anything  about an                                                                    
investigation. He  requested the  committee's consideration,                                                                    
and that the renewal be for eight years.                                                                                        
                                                                                                                                
9:31:09 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop OPENED public testimony.                                                                                        
                                                                                                                                
9:31:23 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop CLOSED public testimony.                                                                                        
                                                                                                                                
Co-Chair Bishop set an amendment  deadline at noon on Friday                                                                    
April 1, 2022.                                                                                                                  
                                                                                                                                
SB  193  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
sb204                                                                                                                           
SENATE BILL NO. 204                                                                                                           
                                                                                                                                
     "An Act relating to auctions or raffles for hunting                                                                        
     harvest permits and big game tags; and providing for                                                                       
     an effective date."                                                                                                        
                                                                                                                                
9:31:52 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop  relayed that it  was the first  hearing for                                                                    
SB 204. The committee intended  to hear a bill introduction,                                                                    
take invited and public testimony, and set the bill aside.                                                                      
                                                                                                                                
EMMA TORKELSON, STAFF TO SENATOR  REVAK, discussed the bill.                                                                    
She  spoke  to  a  Sponsor Statement  (copy  on  file).  She                                                                    
relayed that since  its passage in the  1997, the Governor's                                                                    
Auction  and   Raffle  Tag  Program  had   successfully  and                                                                    
substantially   increased    funding   for    the   wildlife                                                                    
conservation  programs   and  outdoor   tradition  education                                                                    
efforts of the  Alaska Department of Fish  and Game (ADF&G),                                                                    
and outdoor-focused  organizations throughout the  state. In                                                                    
2021, gross revenue was just over $1.2 million.                                                                                 
                                                                                                                                
Ms. Torkelson continued that  the Senate Resources Committee                                                                    
Substitute (CS) for  SB 204 sought to build  on this success                                                                    
and expand the  department's ability to bring  in revenue by                                                                    
adding one new species and  increasing the maximum number of                                                                    
permits  the  department  could issue  to  be  auctioned  or                                                                    
raffled  very minimally.  The funds  would support  wildlife                                                                    
conservation  and protection  programs and  education across                                                                    
Alaska   and  would   increase  the   ability  to   leverage                                                                    
approximately  $18  million  in new  Pittman-Robertson  (PR)                                                                    
funds  that would  be  available soon.  She  noted that  the                                                                    
expansion would help ADFG to raise needed matching funds.                                                                       
                                                                                                                                
Ms. Torkelson informed that the  bill was not the first time                                                                    
that such an expansion had taken  place. In 2014, HB 161 had                                                                    
made  similarly sized  increases  to the  maximum number  of                                                                    
harvest permits that  were issued, and a  noticeable jump in                                                                    
revenue  had  occurred.  She cited  that  modern,  effective                                                                    
wildlife management  was becoming  more expensive.  She used                                                                    
the  example  of an  increase  of  a  couple of  dollars  to                                                                    
aviation  fuel,  which had  a  major  impact on  survey  and                                                                    
inventory  operations that  were  a key  element in  setting                                                                    
game population and harvest objectives.                                                                                         
                                                                                                                                
Ms.  Torkelson  summarized  that  SB 204  would  allow  more                                                                    
federal  revenue to  be leveraged  for critical  sustainable                                                                    
wildlife   education  and   management   programs  and   the                                                                    
proactive  work needed  to prevent  new  listings under  the                                                                    
Endangered Species  Act. She continued that  SB 204 directly                                                                    
supported   sustainable    wildlife   populations,   outdoor                                                                    
traditions, hunters, and outdoor recreation users.                                                                              
                                                                                                                                
Senator Hoffman  asked about page  2, line 1 through  line 8                                                                    
of the bill,  pertaining to the McNeil River  area. He asked                                                                    
if  the  communities  from the  Alaska  Peninsula  had  been                                                                    
contacted   and  what   the   communities'  positions   were                                                                    
regarding the proposed additional permits.                                                                                      
                                                                                                                                
Ms. Torkelson had  not heard that the  community had reached                                                                    
out  to   comment  on  the   issue.  She  deferred   to  the                                                                    
department.                                                                                                                     
                                                                                                                                
Senator Wielechowski  asked for  an explanation of  what was                                                                    
proposed to be deleted on page 2, line 13 to line 30.                                                                           
                                                                                                                                
Ms. Torkelson informed that the  language was proposed to be                                                                    
moved to  Section 4, creating  new subsections (f)  and (g).                                                                    
She described the change as a revisor edit.                                                                                     
                                                                                                                                
Co-Chair Bishop asked Ms. Torkelson  to review the Sectional                                                                    
Analysis before hearing testimony from the department.                                                                          
                                                                                                                                
9:36:20 AM                                                                                                                    
                                                                                                                                
Ms. Torkelson addressed a  Sectional Analysis document (copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     Section 1. Amends AS 16.05.343(a):                                                                                         
     ? Page 1  Lines 6-7: Adds Afognak  and Raspberry Island                                                                    
     Herds to  the type of  Elk harvest permits that  can be                                                                    
     donated by the department to be auctioned or raffled.                                                                      
     ? Page 1 Line 6:  Changes the number of harvest permits                                                                    
     that can  be donated for Etolin,  Afognak, or Raspberry                                                                    
     Elk herds from four to two.                                                                                                
     ? Page 1  Line 9: Adds the word "wildlife"  in front of                                                                    
     "conservation"  to  clarify  that  the  nonprofits  who                                                                    
     qualify to  receive these donated harvest  permits must                                                                    
     be   established  to   promote  education   in  outdoor                                                                    
     traditions  and  "wildlife" conservation  and  wildlife                                                                    
     protection   programs    in   partnership    with   the                                                                    
     department.                                                                                                                
                                                                                                                                
Ms.  Torkelson  noted  that the  language  was  standardized                                                                    
throughout  the  rest of  the  bill,  so all  sections  that                                                                    
mentioned the  eligibility of non-profits  or how  the money                                                                    
could be  used was  the same. She  continued to  address the                                                                    
Sectional Analysis:                                                                                                             
                                                                                                                                
     Section 2. Amends 16.05.343(c):                                                                                            
     ? Page  1 Line 14    Page  2 Line 4:  Removes differing                                                                    
     tag  limits for  individual  species and  allows up  to                                                                    
     four harvest  permits to be  issued for all  the listed                                                                    
     species.                                                                                                                   
     ? Page  2 Line 1: Adds  "emperor goose" to the  list of                                                                    
     available species harvest permits.                                                                                         
                                                                                                                                
Ms. Torkelson  noted that the  bill prosed to  increase Dall                                                                    
Sheep permits  by one, increased  Bison permits by  two. She                                                                    
noted  that the  department  retained the  ability to  issue                                                                    
fewer    permits    dependent     upon    its    biologists'                                                                    
recommendations. She continued to address the Sectional                                                                         
Analysis:                                                                                                                       
                                                                                                                                
     ? Page 2  Lines 5-8: Adds four McNeil  River State Game                                                                    
     Sanctuary  bear-viewing  permits  to  be  auctioned  or                                                                    
     raffled through the same process.                                                                                          
     ? Page 2 Lines 13-30:  Removes language and replaces it                                                                    
     later  in  a  new  subsection  (1)  outlining  a  70/30                                                                    
     revenue split  between the Department of  Fish and Game                                                                    
     and the  qualified organization putting on  the auction                                                                    
     or  raffle and  (2) limiting  use of  the funds  by the                                                                    
     organization to  approved programs and  prohibiting use                                                                    
     of the  funds for any political  campaign or candidate.                                                                    
     This language is put back  into statute in Section 4 as                                                                    
     subsections (f) & (g) of AS 16.05.343.                                                                                     
     ?  Page 2  Lines 12  &  13, Page  3  Lines 1,  2, &  5:                                                                    
     Removes  "big  game"  from any  mention  of  "big  game                                                                    
     harvest permit"  so that all  the permits  are referred                                                                    
     to consistently by the broader "harvest permit."                                                                           
     ? Page  3 Lines 3 &  4: Changes the inscription  on the                                                                    
     hunting  license  issued  under  this  subsection  from                                                                    
     "Governor's license" to "Commissioner's license"                                                                           
                                                                                                                                
     Section 3. Amends AS 16.05.343(e):                                                                                         
     ? Page  3 Line 11:  Adds that a nonprofit  must promote                                                                    
     education  in   "wildlife  conservation"   and  conduct                                                                    
     "wildlife"  conservation programs  in order  to qualify                                                                    
     as  an  organization  that   can  conduct  auctions  or                                                                    
     raffles  for   the  department.  The   new  requirement                                                                    
     sentence reads: "The department  may select a nonprofit                                                                    
     organization   that  promotes   education  in   outdoor                                                                    
     traditions and wildlife  conservation and that conducts                                                                    
     wildlife conservation and  wildlife protection programs                                                                    
                                                                                                                                
                                                                                                                                
     Section   4.  Amends   AS  16.05.343   by  adding   new                                                                    
     subsections:                                                                                                               
     ? Page  3 Lines  19-25: Reinserts the  language removed                                                                    
     in  Section  2 to  create  a  new subsection  (f)  that                                                                    
     requires  that all  revenue earned  from an  auction or                                                                    
     raffle of harvest permits be  paid to the Department of                                                                    
     Fish  and Game  EXCEPT  an amount  not  to exceed  30%,                                                                    
     which  the   qualified  organization  putting   on  the                                                                    
     auction  or raffle  can retain  for the  administrative                                                                    
     costs  of  holding   the  auction/raffle  and  approved                                                                    
     projects and educational  programs that support outdoor                                                                    
     tradition,   wildlife    conservation,   and   wildlife                                                                    
     protection.                                                                                                                
     ?  Page 3  Lines  26    Page 4  Line  4: Reinserts  the                                                                    
     language  removed   in  Section  2  to   create  a  new                                                                    
     subsection (g) explicitly limiting  use of the funds by                                                                    
     the  organization to  approved programs  listed in  (f)                                                                    
     and  prohibiting use  of the  funds for  any "candidate                                                                    
     for  political  office,"  "organization  supporting  or                                                                    
     opposing    ballot    propositions,"   and    "expenses                                                                    
     associated   with    lobbying   the    legislature   or                                                                    
     administration."                                                                                                           
     ? Page 4 Lines 3-7:  Creates a new subsection (h) which                                                                    
     allows  winners of  brown bear  and Dall  sheep harvest                                                                    
     permits  to  engage  in  the hunt  even  if  they  have                                                                    
     successfully taken  a brown bear  or Dall sheep  in the                                                                    
     state in the four years preceding.                                                                                         
                                                                                                                                
     Section 5. Sets an effective date January 1, 2023                                                                          
                                                                                                                                
Senator Wilson  asked about the potential  financial benefit                                                                    
to  the state  for  adding the  additional  permits and  new                                                                    
Emperor Goose tag.                                                                                                              
                                                                                                                                
9:40:46 AM                                                                                                                    
                                                                                                                                
EDDIE GRASSER, DIRECTOR,  DIVISION OF WILDLIFE CONSERVATION,                                                                    
DEPARTMENT OF  FISH AND GAME,  conveyed that  the department                                                                    
believed the  proposed changes would enhance  its ability to                                                                    
raise more funds, based on past records.                                                                                        
                                                                                                                                
Senator Wilson asked if Mr.  Grasser had an estimated dollar                                                                    
amount for the estimated additional revenue.                                                                                    
                                                                                                                                
Mr. Grasser  considered that before  HB 161 passed  in 2014,                                                                    
most years the  department had raised less  than $30,000 per                                                                    
year for  the governor's auction  tag program. In  2021, the                                                                    
department raised a total of  $1.246 million, and the amount                                                                    
seemed to be  going up. He cited that for  the first time in                                                                    
North America,  a wild  sheep governor's  tag sold  for over                                                                    
$500,000, for a Dall Sheep in Alaska.                                                                                           
                                                                                                                                
Co-Chair Bishop asked if Mr. Grasser had anything to add.                                                                       
                                                                                                                                
Mr.  Grasser relayed  that the  department had  not taken  a                                                                    
position  on  the  bill,  but he  was  available  to  answer                                                                    
questions.                                                                                                                      
                                                                                                                                
Senator Hoffman knew that the  McNeil River was very popular                                                                    
for bear  viewing for  people all over  the world.  He asked                                                                    
Mr. Grasser  to share  statistics for  the number  of people                                                                    
applying to view bears in the area.                                                                                             
                                                                                                                                
Mr.  Grasser  did  not  have the  information  at  hand  but                                                                    
thought there was a set number.                                                                                                 
                                                                                                                                
Co-Chair Bishop  asked if Mr.  Grasser could follow  up with                                                                    
the committee with the information.                                                                                             
                                                                                                                                
Mr. Grasser agreed.                                                                                                             
                                                                                                                                
Senator  Hoffman asked  about  the route  that  was used  to                                                                    
access  the McNeil  River and  whether  people went  through                                                                    
Dillingham.                                                                                                                     
                                                                                                                                
Mr. Grasser  thought most  individuals that  accessed McNeil                                                                    
River flew out of Homer or Anchorage.                                                                                           
                                                                                                                                
9:43:25 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop OPENED public testimony.                                                                                        
                                                                                                                                
9:43:34 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop CLOSED public testimony.                                                                                        
                                                                                                                                
Co-Chair  Bishop  noted  that  the  amendment  deadline  was                                                                    
Friday, April 1 at noon.                                                                                                        
                                                                                                                                
SB  204  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:43:52 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:44:48 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Bishop informed  that the  committee would  not be                                                                    
meeting in  the afternoon. He  discussed the agenda  for the                                                                    
following day.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
9:45:48 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:45 a.m.                                                                                          

Document Name Date/Time Subjects
SB 204 Sectional Analysis 3.1.22.pdf SFIN 3/30/2022 9:00:00 AM
SRES 3/2/2022 3:30:00 PM
SB 204
SB 204 Sponsor Statement 3.1.22.pdf HRES 4/25/2022 1:00:00 PM
HRES 4/29/2022 1:00:00 PM
SFIN 3/30/2022 9:00:00 AM
SRES 3/2/2022 3:30:00 PM
SB 204
SB 204 Support Doc Auction-Raffle Revenue by Year 2.28.2022.pdf HRES 4/25/2022 1:00:00 PM
SFIN 3/30/2022 9:00:00 AM
SRES 3/2/2022 3:30:00 PM
SB 204
SB 204 Support Letter SCI-AK 3.1.22.pdf HRES 4/25/2022 1:00:00 PM
HRES 4/29/2022 1:00:00 PM
SFIN 3/30/2022 9:00:00 AM
SRES 3/2/2022 3:30:00 PM
SB 204
SB 204 Testimony RHAK 2.14.22.pdf HRES 4/25/2022 1:00:00 PM
SFIN 3/30/2022 9:00:00 AM
SB 204
SB 204 Testimony APHA 3.2.22.pdf HRES 4/25/2022 1:00:00 PM
HRES 4/29/2022 1:00:00 PM
SFIN 3/30/2022 9:00:00 AM
SB 204
SB 204 S FIN SB 204 Support SCI-AK 3.25.22.pdf HRES 4/29/2022 1:00:00 PM
SFIN 3/30/2022 9:00:00 AM
SB 204
SB 204 Explanation of Changes.pdf SFIN 3/30/2022 9:00:00 AM
SB 204
SB 190 v. I Sponsor Statement.pdf SFIN 3/21/2022 9:00:00 AM
SFIN 3/30/2022 9:00:00 AM
SB 190
SB 190 v. I Sectional Analysis.pdf SFIN 3/21/2022 9:00:00 AM
SFIN 3/30/2022 9:00:00 AM
SB 190
SB 190 Support Document- Legislative Audit RCA Sunset Review 9.21.21.pdf SFIN 3/21/2022 9:00:00 AM
SFIN 3/30/2022 9:00:00 AM
SB 190
SB 190 Work Draft ver. G 03.22.2022.pdf SFIN 3/23/2022 1:00:00 PM
SFIN 3/30/2022 9:00:00 AM
SB 190
SB 190 Explanation of Changes ver. I to G 03.22.2022.pdf SFIN 3/30/2022 9:00:00 AM
SB 190
SB 193 Sponsor Statement V I.pdf SFIN 3/30/2022 9:00:00 AM
SB 193
SB 193 Audit Summary.pdf HL&C 4/25/2022 3:15:00 PM
SFIN 3/30/2022 9:00:00 AM
SB 193
SB 193 Full Audit.pdf HL&C 4/25/2022 3:15:00 PM
SFIN 3/30/2022 9:00:00 AM
SB 193
SB 193_Letter of Support.pdf HL&C 4/25/2022 3:15:00 PM
SFIN 3/30/2022 9:00:00 AM
SB 193
SB 193 Explanation of Changes version B to I.pdf SFIN 3/30/2022 9:00:00 AM
SB 193
SB 190 Explanation of Changes ver. I to W 03.25.2022.pdf HL&C 4/25/2022 3:15:00 PM
SFIN 3/30/2022 9:00:00 AM
SB 190
SB 190 Work Draft ver. W 03.25.2022.pdf SFIN 3/30/2022 9:00:00 AM
SB 190
SB 204 Updated Sectional Analysis Version W 3.29.22.pdf HRES 4/25/2022 1:00:00 PM
HRES 4/29/2022 1:00:00 PM
SFIN 3/30/2022 9:00:00 AM
SB 204
SB 204 ADFG Committee Response 4.4.22.pdf SFIN 3/30/2022 9:00:00 AM
SB 204