HB 143-NO REPEAL OF SPORT FISH GUIDE LICENSING 11:03:44 AM CHAIR EDGMON announced that the next order of business would be HOUSE BILL NO. 143, "An Act repealing the termination of licensing and regulation of sport fishing operators and sport fishing guides and licensing and registration of sport fishing vessels; and providing for an effective date." 11:03:53 AM REPRESENTATIVE KAWASAKI moved to adopt committee substitute (CS) for HB 143, Version 26LS0622\R, Kane 2/24/09, as the working draft. 11:04:03 AM REPRESENTATIVE BUCH objected for discussion. 11:04:13 AM TIM CLARK, Staff, to Representative Bryce Edgmon, Alaska State Legislature, directed attention to Amendment 1, which will serve to bring the licensing fee schedule to a self-sustaining level. It will become essential, if the CS is adopted. 11:05:43 AM MR. CLARK proceeded to introduce CSHB 143, paraphrasing from the sponsor statement, which read as follows [original punctuation provided]: CSHB 143 (FSH) will ensure the continuation of Alaska's sport fish guide licensing and reporting program, which has proven beneficial to both the sport fishing industry and resource managers. Also, the amended license fee schedule included in the legislation will generate funding for the program to pay for itself. Legislation authorizing the program was passed in 2004 for a number of purposes. The Department of Fish & Game sought more comprehensive and credible information on guide numbers and guiding activities. The Department also wanted to create basic standards for sport fish business operators and guides, including minimum liability insurance coverage, first aid certification, and in some cases U.S. Coast Guard vessel licensing. Many stakeholders who were initially skeptical of these measures now acknowledge their role in advancing the guiding profession. This increased level of professionalism has helped raise the standing of the sport fish industry across the state. Many also agree that data collected through the program is an important tool in ADF&G's mission to develop and sustain healthy sport fisheries. The data is of great value not only to the Department's fisheries biologists but also to the Alaska Board of Fisheries, the International Pacific Halibut Commission, and the North Pacific Fishery Management Council. Sport fish data collection also contributes to Alaska's exemption from the recently instituted National Saltwater Angler Registry. NOAA exempts states from this federal registry and data collection system if they have programs in place to provide angler information. Sport fishers would otherwise be required by 2011 to purchase a certificate of registration for $15 to $25. Passing CSHB 143 (FSH) will permit the Department of Fish & Game to continue to foster high standards in Alaska's sport fishing industry. It will also enable the Department to carry on collecting important data for management decisions to benefit both fisheries resources and their stakeholders. And it will increase license revenues to a level that will allow the program to operate without need of a funding subsidy. 11:09:49 AM REPRESENTATIVE MUNOZ asked if the proposed raise in fees will offset the cost of the electronic log reporting program. MR. CLARK explained that such a system does not exist, although the department has indicated that it is considering implementing one. 11:10:49 AM REPRESENTATIVE MUNOZ pursued her interest regarding the intent of the department to upgrade the log program. 11:11:31 AM CHARLES SWANTON, Director, Division of Sport Fish, Alaska Department of Fish & Game (ADF&G), testified in support of CSHB 143. In response to Representative Munoz's question, he said that an electronic reporting system does not currently exist; however, Commissioner Lloyd has prioritized instituting a technologically based reporting system that includes the log program. One of the first steps to this goal is the point of sale license program. The component for this will be launched July, 2009, and is the precursor to electronic reporting. Time lines have been established to introduce further components, and the intent is to have a full system that will allow comprehensive data comparisons. Further, he said, the new fee structure will be adequate to make the program self supporting, although the complete costs of the electronic reporting program are not yet fully known. A portion of the fee structure could be utilized for this purpose, but no definitive decision has been made regarding the complete funding of this upgrade. 11:15:33 AM REPRESENTATIVE KELLER noted the general support for the fee structure to cover the cost of the program. With the new figures being proposed, he asked what benefits the user guides should expect to receive in exchange for the fee increase. MR. SWANTON related that a number of categories exist in the fee structure, such as owner/guide licenses versus guide only. There are about 1,600 businesses/guide combinations and approximately 2,000 guides who participate in the industry. Services relate primarily to data collection, that has a return benefit to the guides through the management process. REPRESENTATIVE KELLER opined that a program audit should be able to reveal accountability for specific return benefits to the user. MR. SWANTON explained that the associated costs are for program administration, printing/distribution of the log books, vessel licensing, and license decals. The current administration requires intensive data entry and information distribution, utilizing an antiquated, paper based system, he reported. 11:20:05 AM REPRESENTATIVE KAWASAKI asked if a fiscal note would be forthcoming. MR. CLARK responded that an updated fiscal note, formulated to provide a self supporting program relating to the CS, has not been distributed, and is relevant to the bill pending the adoption of Amendment 1 [which cannot be considered until the objection to adoption of CSHB 143 is removed]. 11:21:36 AM REPRESENTATIVE KAWASAKI established that there are approximately 1,600 licensees. MR. SWANTON reiterated that 1,600 is the combination of businesses/guides; guide registration averages 1,900. 11:22:07 AM REPRESENTATIVE KAWASAKI noted the highlights of the program as reported by the director, regarding the program's performance for the years leading to the sunset date. However, he pointed out the lack of tangible results and he asked the director to comment. MR. SWANTON relayed that prior to the inception of this bill concerns existed regarding the professional standards for guiding. Negotiability existed regarding the collection of comprehensive data, mandatory insurance, professional identification, and related practices for the industry. The program has allowed for business activity to be tracked, species harvest/catch data collection, and provided information utile to related management agencies for marine waters. 11:25:06 AM REPRESENTATIVE KAWASAKI acknowledged that the department is interested in creating/maintaining business standards. He questioned the fiscal responsibility for first aid certification and insurance coverage for operators. MR. SWANTON specified that the individual participants pay their own costs for these benefits. REPRESENTATIVE KAWASAKI inquired whether first aid training and insurance is mandated due to a regulation propagated by this bill. Further, he asked if the licensed operators are required to hold a business license as well. MR. SWANTON replied yes, they are required to hold a business license. REPRESENTATIVE KAWASAKI commented that the CS effectively doubles fee costs for small businessmen. He maintained his interest in knowing the original intent, and for accountability of the accomplishments gained during the five year life of the bill. To support the CS, he said, he would like to have the department demonstrate how the license fees have been/will be utilized in an efficient, effective manner, and without harm to the user. Basic mathematics indicates a fiscal note will be about $500,000, he estimated. 11:27:36 AM CHAIR EDGMON interjected that the bill is sponsored by the committee on behalf of the department, and based on departmental information. 11:27:59 AM MR. CLARK said that the program currently operates on deficit funding and the increased fee structure is not designed to bolster the program, but with the intent to have it operate in the black. 11:29:01 AM REPRESENTATIVE MUNOZ stated her support for repealing the sunset on the bill, however, she agreed with the previous committee member's comments, that an increase of the fees has not been substantiated. 11:29:40 AM REPRESENTATIVE MILLETT requested testimony from the guide associations as to what benefits they have gleaned, if any, from the original inception date of the bill. 11:30:08 AM REPRESENTATIVE JOHNSON expressed concern for where the bill resides in regard to the budget process, and whether a fiscal request has been made in a timely manner. MR. SWANTON explained that the budget shortfalls, to date, have been filled by funds acquired through the sale of fishing licenses and game harvest stamps. The intent of the department was to have this program be solvent, via a funding increase at the sunset anniversary. 11:33:09 AM REPRESENTATIVE JOHNSON asked what ADF&G programs were affected by the diversion of $500,000 to keep this program solvent. 11:34:45 AM REPRESENTATIVE MILLETT noted that the program has been operating in a deficit for five years, at the cost of $250,000 per year. MR. SWANTON said the amount has varied depending on the number of individuals participating, but the average has been approximately $175,000. The projection for FY 09-10 is about $200,000. MR. CLARK interjected that the revised fiscal note indicates an amount of just over $200,000, with the total operating costs of the program anticipated to be $462,000. [The appropriate fiscal note was made available to the committee (prior to the adoption of CSHB 143 and Amendment 1).] 11:36:55 AM MR. CLARK reiterated that this fiscal note relates to Amendment 1, and otherwise is not relevant to the CS. 11:38:47 AM REPRESENTATIVE JOHNSON reviewed the fiscal note and asked how it is being considered in the budget. MR. SWANTON explained that the request from the department for FY 10 will cover the existing shortfall. An increase of fees will apply to the FY 11 budget. 11:42:45 AM CHAIR EDGMON acknowledged that confusion exists regarding the fiscal note. The bill will be brought back before the committee, with more clarity, he said. REPRESENTATIVE BUCH asked to have information provided regarding impacts to the budget, and budget requests reflected by the sunset of this bill, as well as the updated fiscal note. 11:44:53 AM DICK ERKENEFF, Member, Board of Directors, Kenai River Sportfishing Association, Incorporated, stated that the Kenai River Sportfishing Association officially supports CSHB 143. He said that the guide management program is essential, and should continue without sunset. The bill provides sport fishing guides with minimal standards that are important to the industry, as well as gathers essential data for the continued management of the industry. The timeliness of the data is an issue, and setting up the electronic reporting component is also supported by the association. 11:47:54 AM REPRESENTATIVE MILLETT noted that the association letter of support was written prior to the fee increase to $200.00, and asked if that has changed membership opinion of the bill. MR. ERKENEFF said no, the membership still stands in firm support of the bill. 11:48:38 AM RICK SIKMA stated opposition to CSHB 143, and reported that many guides will have a difficult time meeting the raised fees, given the overall operational costs. CHAIR EDGMON closed public testimony, and stated that the bill would be held. 11:50:11 AM