SENATE RESOURCES COMMITTEE May 8, 1997 3:43 p.m. MEMBERS PRESENT Senator Rick Halford, Chairman Senator Lyda Green, Vice Chairman Senator Loren Leman Senator Robin Taylor Senator John Torgerson Senator Georgianna Lincoln MEMBERS ABSENT Senator Bert Sharp COMMITTEE CALENDAR CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 243(RES) "An Act delaying the repeal of the current law regarding subsistence use of fish and game; amending the effective date of secs. 3 and 5, ch. 1, SSSLA 1992; and providing for an effective date." CS FOR HOUSE BILL NO. 198(FIN) "An Act relating to regional dive fishery development associations and to dive fishery management assessments; and providing for an effective date." CS FOR HOUSE BILL NO. 109(FIN) "An Act relating to the management and disposal of state land and resources; relating to certain remote parcel and homestead entry land purchase contracts and patents; and providing for an effective date." PREVIOUS SENATE COMMITTEE ACTION HB 243 - No previous action to record. HB 198 - No previous action to record. HB 109 - See Resources Committee minutes dated 5/7/97. WITNESS REGISTER Ron Sommerville 4506 Robbie Road Juneau, AK 99801 POSITION STATEMENT: Offered information on CSSSHB 243(RES) Ms. Mary C. Pete, Director Division of Subsistence Department of Fish & Game P.O. Box 25526 Juneau, AK 99802-5526 POSITION STATEMENT: Present to respond to questions on CSSSHB 243(RES) Representative Bill Williams State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Prime Sponsor of CSHB 198(FIN) Geron Bruce, Legislative Liaison Office of the Commissioner Department of Fish & Game P.O. Box 25526 Juneau, AK 99802-5526 POSITION STATEMENT: Outlined department's concern with CSHB 198(FIN) Jerry Luckhaupt, Legal Counsel Legislative Legal & Research Services Legislative Affairs Agency 130 Seward St., Suite 409 Juneau, AK 99801 POSITION STATEMENT: Reviewed changes in SCS CSHB 109(RES) ACTION NARRATIVE TAPE 97-35, SIDE A Number 001 CSSSHB 243(RES) EXTEND CURRENT SUBSISTENCE LAW CHAIRMAN HALFORD called the Senate Resources Committee meeting to order at 3:43 p.m. The first order of business was the consideration of CSSSHB 243(RES), which is an extension of the sunset provisions on the amendment to the subsistence law that was passed in 1992. Number 015 RON SOMMERVILLE, a technical consultant to the Senate/House leadership, confirmed the legislation extends the existing state law for one year. Allowing the 1992 law to sunset would mean going back to the 1986 law, which creates a certain amount of problems and a significant cost. When the 1992 law passed, it necessitated going through all of the regulations, one at time, to make sure they were in conformance with the law, and the same thing would have to occur if it was to sunset and be replaced by the 1986 law. Mr. Sommerville pointed out passage of HB 243 has considerable support. Number 045 There being no questions from committee members on CSSSHB 243(RES), CHAIRMAN HALFORD requested a motion on the legislation. SENATOR LEMAN moved CSSSHB 243(RES) and the zero fiscal note be passed out of committee with individual recommendations. Hearing no objection, it was so ordered. Number 055 CSHB 198(FIN) DIVE FISHERY MANAGEMENT ASSN. & ASSESSMNT CHAIRMAN HALFORD brought CSHB 198(FIN) before the committee as the next order of business. REPRESENTATIVE BILL WILLIAMS, prime sponsor of HB 198, said the legislation is a jobs bill supported by the southeast communities. For the past decade Southeast Alaska has been attempting to establish a orderly, consistent and stable fishery but the problem has always been a long-term funding mechanism for the merging fishery. HB 198 provides the divers with the ability to assess themselves to pay for the management of the dive fishery. Divers would be able to organize associations, to assess themselves and to work with the Department of Fish and Game in a cooperative manner to solve the management problems and reduce management costs. Representative Williams pointed out that timing is an important factor in this legislation. There is some money in the operating budget to operate a small portion of the fisheries in FY 98, but in order to have a fishery in FY 99 and develop more jobs, the divers must start assessing themselves as soon as possible, and passage of HB 198 this session will allow this to happen. Number 085 GERON BRUCE, Legislative Liaison, Department of Fish and Game, addressing the funding of the legislation, said right now it would be general fund program receipts. The impression by supporters of the bill is that it would provide new funding to the Department of Fish & Game to develop these new fisheries, but the passage of this bill alone will not accomplish that unless the revenue was classified as designated program receipts under SB 55. However, the current version of SB 55 will not include this kind of revenue as a designated program receipt, so the department is concerned that in order to develop this new fishery, funding will have to be taken from some existing fishery management program. He noted the department has worked with the sponsor on a number of issues in the bill and has been able resolve them, but the funding issue remains an outstanding issue and a concern to the department. CHAIRMAN HALFORD asked what happens if the Finance Committee adopts the fiscal note for the bill in general funds. MR. BRUCE responded there wouldn't be a cost until FY 99, but if the Legislature continues to reduce the department's total overall budget, there would have to be cuts someplace else to go forward with this. CHAIRMAN HALFORD commented that the program costs $302,000 and it generates $302,000. SENATOR LEMAN suggested the program receipts legislation has already passed this session, but it may be something that can be dealt with next year because he thinks it is something completely contrary to what he thinks the intent of the bill is which is to provide an alternative funding mechanism for the program. Number 145 SENATOR TAYLOR asked if Mr. Bruce was saying the department supports the legislation. MR. BRUCE replied that he was not saying the department supports the legislation. He said they've worked to resolve a number of issues, but they have not taken a position of support because of their concern with the impact of this one issue on the department's overall budget. Number 160 SENATOR TORGERSON said he thinks HB 198 would fall under SB 55 if it meets the criteria of that bill because SB 55 didn't set out a laundry list of different programs that would be considered to be designated program receipts. One of the criteria is to enter into a contract with another entity where the funds would come in as a result of entering into that contract, and he thinks that it would qualify under the designated program receipts if they entered into a contract. Number 225 SENATOR LINCOLN said there is no question that this a good piece of legislation, but she has heard concern that the money from the assessments might be used for other than what it is intended for. She asked Representative Williams if that was of concern to him and how he proposes preventing that from happening. REPRESENTATIVE WILLIAMS acknowledged that it is a concern, but he is optimistic that these monies will go where they are supposed to go. Number 260 SENATOR TAYLOR moved CSHB 198(FIN) and the accompanying fiscal note be passed out of committee with individual recommendations. Hearing no objection, it was so ordered. CSHB 109(FIN) MANAGEMENT OF STATE LAND AND RESOURCES CHAIRMAN HALFORD brought CSHB 109(FIN) before the committee as the final order of business. However, because the draft Resources SCS was not back from the drafter, he stated the committee would stand in recess until it was available. CHAIRMAN HALFORD recessed the Senate Resources Committee at 4:00 p.m., and called it back to order at 6:12 p.m. He then asked Mr. Luckhaupt to review the changes made to the Resources SCS after going through the bill section by section the previous day. JERRY LUCKHAUPT, Legal Counsel, Legislative Affairs Agency, outlined the following changes. Section 7. The "staking and lease" language was reinserted. Section 8. It is a new section that allows the use of site specific land use plans when a regional land use plan is not being completed. Section 14. The interest rate was changed from four percent to three percent. Section 21. Removal of a below-ground tank was changed from 30 days to 60 day after termination of a lease. Section 23. In subsection (a) the language "in areas of the state with dispersed populations if the land is classified for that purpose under the procedures required by AS 38.05.300 and 38.05.945" was deleted out of the first sentence. Section 33. The fee for a homestead entry permit if the entry is on land not classified agricultural was changed from $20 per acre to $10 per acre. Section 35. It is a conforming change because AS 38.09.050(a)(3) is being repealed. Section 40. The citation of AS 38.05.056 was changed to AS 38.05.856. Language was also changed on lines 22 and 23 to address a concern relating to people that had permits and they hadn't been acted on by the department. After the review of the changes, CHAIRMAN HALFORD requested a motion to adopt the Resources SCS. SENATOR LEMAN moved the adoption of SCS CSHB 109(RES) dated 5/8/97. Hearing no objection, it was so ordered. SENATOR GREEN moved SCS CSHB 109(RES) and the accompanying fiscal note be passed out of committee with individual recommendations. Hearing no objection, it was so ordered. There being no further business to come before the committee, the meeting adjourned at 6:22 p.m.