Legislature(1995 - 1996)

02/22/1995 03:50 PM RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                   SENATE RESOURCES COMMITTEE                                  
                       February 22, 1995                                       
                           3:50 P.M.                                           
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Senator Loren Leman, Chairman                                                 
 Senator Drue Pearce, Vice Chairman                                            
 Senator Steve Frank                                                           
 Senator Rick Halford                                                          
 Senator Georgianna Lincoln                                                    
 Senator Lyman Hoffman                                                         
                                                                               
  COMMITTEE MEMBERS ABSENT                                                     
                                                                               
 Senator Robin Taylor                                                          
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
 SENATE BILL NO. 69                                                            
 "An Act relating to hazardous chemicals, hazardous materials, and             
 hazardous waste."                                                             
                                                                               
 SENATE BILL NO. 63                                                            
 "An Act relating to the Alaska Sport Fishing Industry Marketing               
 Council and a nonresident sport fishing license surcharge."                   
                                                                               
 Oil and Gas Incentives                                                        
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
 SB 69 - No previous action to record.                                         
                                                                               
 SB 63 - No previous action to record.                                         
                                                                               
  WITNESS REGISTER                                                             
                                                                               
 Annette Kreitzer, Committee Aide                                              
 Senate Resources Committee                                                    
 State Capitol                                                                 
 Juneau, AK 99801-1182                                                         
  POSITION STATEMENT:   Commented on SB 69.                                    
                                                                               
 Peggy Goodstein                                                               
 ARCO Alaska                                                                   
 P.O. Box 10036                                                                
 Anchorage, AK 99510                                                           
  POSITION STATEMENT:   Supported SB 69.                                       
                                                                               
 Chester Weger, Acting Director                                                
 Division of Fire Prevention                                                   
 Department of Public Safety                                                   
 5700 Tudor Road                                                               
 Anchorage, AK 99507-1225                                                      
  POSITION STATEMENT:   Answered questions regarding issues in SB 69.          
                                                                               
 Rita Venta                                                                    
 Anchorage Fire Department                                                     
 1301 E. 80 th Ave.                                                            
 Anchorage, AK 99510                                                           
  POSITION STATEMENT:   Supported SB 69.                                       
                                                                               
 Eric Stirrup                                                                  
 Kodiak West Charter                                                           
 P.O. Box 4123                                                                 
 Kodiak, AK 99615                                                              
  POSITION STATEMENT:   Opposed SB 63.                                         
                                                                               
 Jeff Bush, Deputy Commissioner                                                
 Department of Commerce and Economic Development                               
 P.O. Box 110800                                                               
 Juneau, AK 99811-0800                                                         
  POSITION STATEMENT:   Opposed SB 63.                                         
                                                                               
 Bud Hodson                                                                    
 Alaska Sportfishing Industry                                                  
 Tikchik Lodge, AK                                                             
  POSITION STATEMENT:   Supported SB 63.                                       
                                                                               
 Geron Bruce, Legislative Liaison                                              
 Department of Fish and Game                                                   
 P.O. Box 25526                                                                
 Juneau, AK 99802-5526                                                         
  POSITION STATEMENT:   Commented on SB 63 and its funding source              
 problems.                                                                     
                                                                               
 Max Lowe, General Manager                                                     
 Regal Alaskan Hotel                                                           
 4800 Spendard Rd.                                                             
 Anchorage, AK 99510                                                           
  POSITION STATEMENT:   Supported SB 63.                                       
                                                                               
 Farley Dean                                                                   
 Mat-Su Professional Guides                                                    
 Wasilla, AK 99687                                                             
  POSITION STATEMENT:   Supported SB 63.                                       
                                                                               
 Ed Sharp                                                                      
 Wilderness Lodge                                                              
 P.O. Box 190711                                                               
 Anchorage, AK 99519                                                           
  POSITION STATEMENT:   Supported SB 63.                                       
                                                                               
 Bill Foster, President                                                        
 Sitka Charter Boat Operators                                                  
 2810 Sawmill Creek Rd.                                                        
 Sitka, AK 99835                                                               
  POSITION STATEMENT:   Opposed SB 63.                                         
                                                                               
 Ben Ellis, Executive Director                                                 
 Kenai River Sportfishing Association                                          
 P.O. Box 1228                                                                 
 Soldotna, AK 99669                                                            
  POSITION STATEMENT:   Commented on SB 63.                                    
                                                                               
 Don Johnson                                                                   
 P.O. Box 876                                                                  
 Soldotna, AK 99669                                                            
  POSITION STATEMENT:   Opposed SB 63.                                         
                                                                               
 Joseph Jolly, Board member                                                    
 United Cook Inlet Drift Association                                           
 HC 2, Box 753                                                                 
 Soldotna, AK 99669                                                            
  POSITION STATEMENT:   Opposed SB 63.                                         
                                                                               
 Dick Hoffman                                                                  
 5025 Thane Rd.                                                                
 Juneau, AK 99801                                                              
  POSITION STATEMENT:   Opposed SB 63.                                         
                                                                               
 Selim Hassan                                                                  
 P.O. Box 22298                                                                
 Juneau, AK 99801                                                              
  POSITION STATEMENT:   Opposed SB 63.                                         
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 95-11, SIDE A                                                           
                                                                               
 SRES 2/22/95                                                                  
            SB  69 REPORTING OF HAZARDOUS SUBSTANCE                           
                                                                              
 Number 001                                                                    
                                                                               
  CHAIRMAN LEMAN  called the Senate Resources Committee meeting to             
 order at 3:50 p.m. and announced SB 69 to be up for consideration.            
                                                                               
 ANNETTE KREITZER, Resources Committee Aide, explained that SB 69 is           
 not a new idea.  The State Emergency Response Commission first                
 considered this back in 1987-88.  Currently there are two                     
 placarding programs; one is under Title 18 done by the State Fire             
 Marshal's office which has placarded 14 sites outside the                     
 Municipality of Anchorage and under Title 29 which allows                     
 municipalities to have their own placarding program.                          
 SB 69 would allow the continuance of the Title 29 placarding                  
 program, but it would delete the State Fire Marshal's placarding              
 program.  It would also create a single application form of 4 pages           
 taken from the current EPA Tier II form.                                      
                                                                               
 PEGGY GOODSTEIN, ARCO Alaska, testified in support of SB 69 which,            
 she said, is a real improvement in chemical reporting.  It will               
 simplify regulations and reduce costs while still providing                   
 protection for emergency response personnel and the community.                
                                                                               
 CHESTER WEGER, Acting Director, Division of Fire Prevention, said             
 he would answer their questions.                                              
                                                                               
 SENATOR HALFORD commented on the fact that the existing law allows            
 a municipality to require reporting in lesser quantities than the             
 State law and asked him if any municipalities had done that.  MR.             
 WEGER answered that the only municipality that has their own                  
 program is Anchorage.  Their reporting quantities are the same as             
 the state law.  Removing that authority wouldn't have an effect on            
 any existing requirement.  He said the current program that has               
 been in effect since 1987 is not working.                                     
                                                                               
 SENATOR LEMAN asked why there were only 14 sites placarded.  MR.              
 WEGER answered that the primary reason is that they don't have the            
 enforcement personnel to enforce the program.                                 
                                                                               
 RITA VENTA, Anchorage Fire Department, said she is the                        
 Administrator of the Community Right-to-Know Program for the                  
 Municipality of Anchorage.  She said 730 businesses participate in            
 their program and she said their placarding program is 95%                    
 effective.  She said she didn't have a problem with the                       
 standardized Tier II form.  It is important to their patrons in               
 Anchorage and to fire prevention to be able to maintain their                 
 reporting requirements.  She noted that their requirements are the            
 same as state requirements, but those are more stringent than                 
 federal requirements.                                                         
                                                                               
 The teleconference connection broke at this point and Ms. Venta was           
 disconnected.                                                                 
                                                                               
 Number 160                                                                    
                                                                               
 MS. KREITZER clarified that SB 69 would require a change in the               
 Anchorage program.  The change is on page 2, lines 27 and 28 where            
 it deletes "a consumer commodity of a hazardous material in the               
 quantity of more than 1,000 lbs" and the reason is it covers                  
 facilities like K-Mart or Wal-Mart where there are large quantities           
 of fertilizers and paint remover, etc.  Fire departments readily              
 acknowledge that it is easy to recognize that these stores those              
 kinds of things.                                                              
                                                                               
 Number 211                                                                    
 SENATOR FRANK asked what a placard does.  MS. KREITZER said it's              
 purpose is warn first responders and fire fighters that there is a            
 hazard in the building.  There have been additional federal                   
 requirements for reporting and facilities must now report directly            
 to fire departments and to local emergency planning committees.  It           
 brings about the question of whether there is a need for this                 
 redundant program of marking with a placard when fire departments             
 go in and do pre-fire planning surveys.                                       
                                                                               
 Basically, she said, this bill is attempting to bring about one               
 form for four reporting requirements - Emergency Planning,                    
 Community Right-to-Know, the Fire Marshal, and handling the                   
 municipality placarding in Title 29.  She said the placard goes on            
 the outside of a building.                                                    
                                                                               
 Number 256                                                                    
                                                                               
 MS. VENTA commented that the placarding program works very well for           
 them and it is used for above ground fuel storage, but is not                 
 needed for underground tanks.  She felt it was important to keep              
 hazardous waste and acute hazardous waste listed in the bill.  Even           
 though they are regulated in other areas, it is important to know             
 those items are on-site, especially if they are in large                      
 quantities.                                                                   
                                                                               
 She had no problem with dropping the consumer commodity reporting             
 requirement of 1,000 lbs.  The state and municipality requirements            
 are significantly lower than EPA's.  For most things it is 500 lbs.           
 and for EPA it's 10,000 lbs.                                                  
                                                                               
 SENATOR FRANK commented that was a big difference.  MS. VENTA                 
 explained that there were no federal requirements when Anchorage              
 and the State set their requirement figures.                                  
                                                                               
 MS. KREITZER said in writing this legislation the working group               
 attempted first of all to agree on what was to be reported and to             
 try to get the same things reported under all the different laws.             
 Secondly, they addressed the question of quantities.                          
                                                                               
 SENATOR LINCOLN noted that while the Alaska Local Emergency                   
 Planning Committee Association supports the legislation, they                 
 listed five areas as suggestions for compromise.  She asked if any            
 of those were in the bill or was there any thought to incorporate             
 those items in the bill.  She didn't know for sure if exempting               
 facilities out of a public fire response jurisdiction would help              
 the smaller communities or tie their hands further.  She said these           
 concerns could be addressed at a later meeting.                               
                                                                               
 MS. KREITZER explained regarding exempting facilities, unless a               
 city elected to begin a placarding program, they are exempt.  The             
 repeal of AS 18.73.10 does this and on page 2, line 6.                        
                                                                               
 MS. VENTA came back on line and responding to a question listed               
 some of the hazardous substances currently reported like gasoline,            
 diesel, paint thinners, solvents, etc..  She mentioned that in                
 Anchorage there are a number of radio active sites.                           
 SENATOR LEMAN said they would next take up oil and gas incentives.            
 He noted a memorandum dated February 17, 1995 which contained ideas           
 taken from testimony from the previous meeting, as well as other              
 sources.  He asked the Committee to see if there were some ideas in           
 there that they could formulate into legislation.                             
                                                                               
 MS. KREITZER said she hoped to get legislation on this issue                  
 drafted by March 3 - 7.  She said there was most interest in high             
 cost marginal wells, higher credits with some additional disclosure           
 from companies under the Exploration Incentive Credit Program,                
 reinstatement of the discovery royalty credit, and royalty                    
 reduction for gas development in Bush/Rural Alaska.                           
                                                                               
 SENATOR LEMAN said item 24 had been proposed to the Division of Oil           
 and Gas - to reduce or eliminate the royalty rate on new field                
 exploration (or for field extensions) until payout.                           
                                                                               
 SENATOR FRANK asked if there was any discussion about over-all tax            
 policy as it relates to trying to reduce litigation risk - so that            
 people would know what their tax would consist of instead of                  
 fighting about it in court.                                                   
                                                                               
 MS. KREITZER said there was some general comment about that, but              
 not a specific recommendation.  SENATOR LEMAN said he had heard the           
 State had reduced the possibilities for litigation.  SENATOR FRANK            
 said he heard that these tax cases were always limited to some                
 period in the past to some period in the more recent past, and then           
 they've got from that point forward to still litigate.  SENATOR               
 FRANK suggested simplifying tax codes since we have a large mix of            
 taxes now, each one complicated in its own fashion.                           
                                                                               
 SENATOR LEMAN said to send further comments and ideas to him so               
 they could formulate something to begin discussing.                           
 SRES 2/22/95                                                                  
        SB  63 SPORT FISHING MARKETING COUNCIL/SURCHARGE                      
                                                                               
  SENATOR LEMAN announced SB 63 to be up for consideration.                   
                                                                               
 ERIC STIRRUP, Kodiak resident, opposed SB 63, because sport fishing           
 is better served by private industry, an industry which stands                
 quite well on its own feet.  He didn't understand the rationale               
 behind this bill, other than it creates another council, another              
 State funded organization, more government, with the cost put on              
 the backs of non-resident recreational anglers.                               
                                                                               
 JOSH FINK, Legislative Aide to Senator Kelly, said SB 63 has two              
 goals, first to increase revenues going into the ADF&G fund for               
 sport fish research and management which includes habitat and                 
 species restoration; and second, to create a new self-funded                  
 council to both promote Alaska as a sport fishing destination and             
 to inform anglers of the diversity of fishing experiences available           
 lessening the crowding on current high impact areas.  SB 63 would             
 establish a $5 fee on non-resident fishing licenses which would be            
 deposited directly into the constitutionally established Fish and             
 Game fund.  This fund can only be utilized for fish and game                  
 research and management which includes species and habitat                    
 restoration.  More than $1.1 million of new revenue would go into             
 the fish and game fund.                                                       
                                                                               
 The Council would implement a sport fishing marketing program.  He            
 admitted there was a problem with the funding mechanism.  They may            
 receive industry contributions as well as some general fund                   
 contributions, but the money will be going into a dedicated fund,             
 so that could be a problem.                                                   
                                                                               
 MR. FINK said that the prime sponsor would probably support                   
 reducing the size of the council and adding the Director of Tourism           
 and Director of Sport Fish as permanent members.  He concluded by             
 saying that sport fishing is a major industry worth hundreds of               
 millions of dollars, yet there is no statewide organization that              
 focuses on the marketing of this industry.  This council would                
 organize the industry and allow it to help itself.  It would help             
 alleviate the problem of over-crowding on popular rivers by helping           
 inform the public of less crowded streams and rivers.                         
                                                                               
 SENATOR LEMAN asked how they would keep from creating more                    
 conflicts on the already crowded rivers.  MR. FINK responded that             
 there are a lot of areas that don't see sport fishermen which would           
 be highlighted by the council.                                                
                                                                               
 SENATOR HOFFMAN said the Legislature had raised the license fees a            
 few years ago and asked what they are currently.  MR. FINK answered           
 that a non-resident license for the whole season is $50, the 14-day           
 non-resident license is $30, the three-day is $15, and the one-day            
 is $10.  SENATOR HOFFMAN said he thought they pushed the limits on            
 the disparity test between resident and non-resident last time and            
 they would probably have to increase the fee for residents as well.           
                                                                               
 SENATOR LEMAN remarked that the disparity is supposed to be no more           
 than 3 to 1.                                                                  
                                                                               
 TAPE 95-11, SIDE B                                                            
 Number 568                                                                    
                                                                               
 SENATOR LINCOLN said she didn't know why this bill was introduced,            
 because we already have the Alaska Tourism Marketing Council which            
 promotes Alaska.  Part of that is the fisheries.  She noted that              
 license fees had already been increased recently and it looks like            
 a $5 surcharge was going to be imposed only if the Commissioner               
 goes into some kind of contract.  She said 19 people on a                     
 Commission were too many.  MR. FINK said it was modeled after the             
 ATMC.  She thought the council would just duplicate exactly what we           
 have now.                                                                     
                                                                               
 MR. FINK said it's the difference between a shot gun approach and             
 rifle approach.  The ATMC does a fine job, but their efforts are              
 largely concentrated on cruise ships.  He said they are amenable to           
 dropping the size of the council to 11.                                       
                                                                               
 SENATOR FRANK asked if he proposed a match by the industry and if             
 so, what mechanism would they use.  MR. FINK said he did want a               
 match from the industry.  This is a part of the bill that needs               
 work.  They are considering some type of sliding scale registration           
 fee to be part of this non-profit industry association, based on              
 gross revenues.                                                               
                                                                               
 SENATOR FRANK asked if that would be a voluntary mechanism. MR.               
 FINK said they were working on that issue now.                                
                                                                               
 SENATOR LEMAN held up a copy of a sport fishing brochure from ADF&G           
 and asked Mr. Fink if he was aware that this was being done and was           
 it what they were thinking about doing.  Mr. Fink indicated he                
 hadn't seen it.                                                               
                                                                               
 Number 521                                                                    
                                                                               
 JEFF BUSH, Deputy Commissioner, Department of Commerce and Economic           
 Development, said his department supports all marketing efforts for           
 the State and encourages efforts to add funds to the State's                  
 marketing efforts.  It is because of that the Department opposes              
 this legislation.  The State has a generic approach to its                    
 marketing at present.  That's the way ATMC and the Division of                
 Tourism operate.  Their concern is that this is an effort to                  
 fragmentize what is a finite amount of marketing dollars.                     
                                                                               
 Another problem is with how the program is going to be                        
 administered, because a new bureaucracy is being created that then            
 has to contract out efforts to market Alaska.  He said an                     
 alternative to creating a council would be to just give this group            
 a grant.  A council allows decisions to be made on how monies are             
 to be spent.  The problem is that you need some staff to do that,             
 because there will be multiple contracts that have to go under the            
 procurement code and that have to be managed as State contracts.              
                                                                               
 MR. BUSH said the sponsor of SB 63 stated he did not want to have             
 a negative impact on any of the existing marketing the state does,            
 but as a practical matter, this particular council will take money            
 away from the ATMC.  He explained that the Vacation Planner,                  
 published by the ATMC, is funded through advertising from private             
 businesses -many of which are sport fishing related.  Those people            
 would take their money from the Vacation Planner and put it in an             
 organization that promotes sport fishing exclusively.                         
                                                                               
 MR. BUSH said he supported the idea of sport fishermen getting an             
 association together, but he questioned the council approach within           
 the Department of Commerce and Economic Development.                          
                                                                               
 Number 458                                                                    
                                                                               
 SENATOR FRANK asked about the notion of increasing non-resident               
 fees and putting that money into a generic marketing program that             
 would include sports fishing.  MR. BUSH said there may be a legal             
 problem with the surcharge.  Assuming you can overcome this hurdle,           
 that seems a very reasonable way to fund tourism marketing efforts.           
                                                                               
 SENATOR FRANK said some people were concerned that all we do is               
 generic advertising.  He thought that there are some niches that              
 need some focus.                                                              
                                                                               
 MR. BUSH said he appreciates his comments very much and that the              
 Governor and the Commissioner have placed a priority on looking at            
 the way that all Alaska marketing is done.  They feel they want to            
 market areas and interests that have not been properly covered in             
 the past.  Rural tourism is one of the priorities on their agenda             
 right now.                                                                    
                                                                               
 Number 401                                                                    
                                                                               
 BUD HODSON, Alaska Sportfishing Industry, said he supports this               
 bill.  His original concept was to create a marketing council that            
 could look at the sport fishing industry and plan for the future.             
 He said they first thought the $5 surcharge was a good mechanism              
 for self funding; they did not want to come to the Legislature and            
 ask for general funds.  He said they are working on resolving the             
 surcharge issue.  He explained that with the bag limits and                   
 closures in the sport fisheries, some businesses lose a component             
 of their summer.  He thought effort could be spent marketing August           
 and September and alternate, under-utilized fisheries, noting that            
 mostly king salmon are targeted by sport fishermen.  The sockeye              
 allocation is a problem in Cook Inlet, but not the rest of the                
 state.  He said they needed to educate people about what they have            
 to offer.                                                                     
                                                                               
 GERON BRUCE, Alaska Department of Fish and Game, addressed the                
 funding source problems of this bill.  He said the Division of                
 Sport Fisheries has two major funding sources, neither of which are           
 general fund.  It receives funds from the Federal Aid and                     
 Restoration (FAR) Program and a federal Fish and Game Fund.  The              
 FAR Program requires that the Fish and Game fund be used only for             
 certain purposes and not diverted to other uses.  This bill, he               
 thought, would be classified as a divergence of funds.  Mr. Bill              
 Martin, Administrator for the Federal Aid Program in the State of             
 Alaska, has supported this view and said it would jeopardize and              
 result in the loss of about $10 million in federal funds.                     
                                                                               
 Number 303                                                                    
                                                                               
 MAX LOWE, Regal Alaskan Hotel, said he has watched over the past              
 nine years the continued positive impact of Alaska's sports fishing           
 industry on individual tourism related businesses.  He has also               
 experienced the immediate dramatic declines in revenue during                 
 closures and limitations on the fishing resources.  It is                     
 imperative that the tourism, sportfishing, and small businesses               
 have a voice in their own future.  This is a marketing effort that            
 will create more jobs and more revenue for everyone.                          
                                                                               
 SENATOR LEMAN asked him what percentage and what amount of his                
 income was related to sport fishing customers.  MR. LOWE answered             
 that it's been between 17% - 23% of his annual business.                      
                                                                               
 FARLEY DEAN, owner of a resort and Vice President of the Mat-Su               
 Valley Professional Guides Association, said sport fishing in                 
 Alaska has to be better represented.  He said sport fishermen are             
 going to many other places than to Alaska, because they are no                
 longer "getting their bang for their buck in Alaska."                         
                                                                               
 Number 187                                                                    
                                                                               
 ED SHARP, sport fishing lodge owner, supported SB 63.  He said the            
 sport fishing is growing very fast in this state.  It needs more              
 promotion for "off the beaten track" destinations.  SB 63 does have           
 some problems with the funding mechanism and the 19 member Board is           
 too many.                                                                     
                                                                               
 BILL FOSTER, President, Sitka Charter Boat Owners Association,                
 opposed SB 63.  It is not needed in Sitka where allocation is an              
 already tense situation.  In Southeast Alaska king salmon are                 
 allocated between commercial and sport anglers.  There are not                
 enough fish for each Southeast resident to have just one fish.                
 Because of the U.S./Canada Salmon Treaty, there may be even less in           
 the future.  He said that presently the people in the private                 
 sector are doing a good job of marketing.                                     
                                                                               
 Number 117                                                                    
                                                                               
 BEN ELLIS, Executive Director, Kenai River Sport Fishing, testified           
 in tentative support of the concept behind SB 63 - providing that             
 the funding mechanism can be addressed successfully.  This state              
 has a big sport fishing potential that needs to be marketed in a              
 clear, concise, and logical manner.  The fisheries have been a                
 critical part of Alaska's past and will be important in its future.           
 Sport fishing, in particular, fuels a growing tourism economy. The            
 need for marketing sport fishing experiences was noted in a report            
 by the Governor's transition team.                                            
 SENATOR LEMAN said the Kenai River fishery is an example of a                 
 fishery that is fully utilized and additional activity should be              
 focused on under-utilized fisheries.  He asked Mr. Ellis if he                
 agreed with this.  MR. ELLIS said it would be hard to market Alaska           
 sport fishing without, at some point, pointing out that the Kenai             
 River is the greatest sport salmon fishing river in the world.  The           
 Kenai, incidentally, holds more world records than any river and he           
 thought it would be unrealistic to not include the Kenai River in             
 a marketing effort.                                                           
                                                                               
 Number 36                                                                     
                                                                               
 DON JOHNSON, Soldotna resident, said he is a sport fishing guide on           
 the Kenai River.  He said SB 63 leaves out the important element of           
 allocation of fisheries to the potential people this bill is                  
 targeted to attract.                                                          
                                                                               
 TAPE 95-12, SIDE A                                                            
 Number 001                                                                    
                                                                               
 MR. JOHNSON had a problem figuring out how the allocation was going           
 to change to accommodate more sport fishermen in Alaska.  He said             
 this bill was attempting to sell a non-existent product, basically.           
                                                                               
 JOSEPH JOLLY, Board member, United Cook Inlet Drift Association,              
 said this bill has a lot of problems.  His biggest concern was with           
 habitat.  This legislation would promote increased pressure to the            
 over worked sport fishing habitat of the Alaskan waters.                      
                                                                               
 DENNIS RANDA, State Council of Trout Unlimited, said, "What we are            
 facing is lack of planning."  He commented that if we don't start             
 planning for the future of sport fishing in Alaska, we will have              
 the same situation as in Oregon and Washington where there is very            
 little sport fishing left.                                                    
                                                                               
 Number 133                                                                    
                                                                               
 DICK HOFFMAN, commercial and sport fisherman, opposed SB 63.  He              
 said the concept of targeting some species that aren't being                  
 utilized has some merit, but allocation would be a conflict in the            
 near future.  At this time, the International Pacific Halibut                 
 Commission and the North Pacific Fisheries Management Counsel are             
 looking at placing restrictions on the harvest of halibut by the              
 guided sport fleet.  In Southeast the U.S./Canada Salmon Treaty has           
 put a restriction on us and there will be further cutbacks on the             
 quota available on king salmon, he said.                                      
                                                                               
 To promote a rapid growth of the guided sport fishery is going to             
 lead invariably to increased conflicts between subsistence, the               
 sport user, the guided sport user, and the commercial fleet that              
 will have to be battled out either in the Board of Fisheries or in            
 the Legislature.                                                              
 MR. HOFFMAN said that a few years ago commercial fishermen were               
 assessed 1% of their gross income every year to help promote their            
 product.  Maybe there should be some sort of marketing tax on the             
 guided charter fleet.                                                         
                                                                               
 In Southeast Alaska the king salmon are split 20% for sport                   
 fishermen and 80% for commercial fishermen.  That is changing, for            
 when the Board of Fisheries meets again it will a 25%/75% split.              
                                                                               
 Number 169                                                                    
                                                                               
 SELIM HASSAN, owner of a sport fishing business, said he deals                
 strictly with fly fishing clients.  His clients are almost 100%               
 from out of state.  He said he lived in Oregon for about 10 years             
 and he saw what happened with habitat which is very important.  If            
 you don't have it, you don't have fish.                                       
                                                                               
 MR. HASSAN said he has a business relationship with Holland America           
 and he is aware of the cruise lines interest in fishing and he goes           
 out of his way, geographically, to take his clients to good spots.            
 He doesn't advertise personally.  Their advertising is done by                
 magazine articles and word of mouth.  When it comes to Alaska,                
 Alaska sells itself.  He has talked to many people from Russia,               
 Europe, Japan, and other places.  Everyone knows where Alaska is              
 and what Alaska has.  He doesn't have to sell Alaska.  He just has            
 to sell his programs.                                                         
                                                                               
 He thought the concept of SB 63 was good, but he thought it would             
 be better for the sport fishermen get together and form a council             
 of their own.  He didn't think the state had the revenues to fund             
 another council.                                                              
 SENATOR LEMAN thanked everyone for their testimony and said he                
 planned to hold this bill over and work on it.                                
                                                                               
 SENATOR LEMAN adjourned the meeting at 5:40 p.m.                              
                                                                               

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