03/16/2010 10:15 AM House FISHERIES

                HB 246-SPORT FISH GUIDE LICENSES                                                                            
                                                                                                                                
10:52:07 AM                                                                                                                   
                                                                                                                                
CHAIR EDGMON announced that the  final order of business would be                                                               
HOUSE  BILL  NO. 246,  "An  Act  relating  to the  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."                                                                                               
                                                                                                                                
10:52:22 AM                                                                                                                   
                                                                                                                                
JAMES ELLIS,  staff to Representative  Mark Neuman,  Alaska State                                                               
Legislature,  informed the  committee  Representative Newman  has                                                               
offered  an  amendment to  the  bill;  however, as  the  sponsor,                                                               
Representative Neuman  has requested  that the  committee address                                                               
only  the  bill  at  this  time so  that  the  amendment  can  be                                                               
considered  by  the  next  committee  of  referral.    Mr.  Ellis                                                               
introduced  the bill  paraphrasing  from  the sponsor  statement,                                                               
which read as follows:                                                                                                          
                                                                                                                                
     HB 246 extends Alaska's  sport fish guide licensing and                                                                    
     reporting  program for  one year.   The  data collected                                                                    
     through  this program  has been  an important  tool for                                                                    
     the  proper management  of  sport  fisheries through  a                                                                    
     better  understanding  of  our fish  stocks  and  their                                                                    
     harvest.   In  addition,  the licensing  has ensured  a                                                                    
     standard  for  professionalism and  responsibility  for                                                                    
     sport  fish  businesses  and  guides,  benefiting  both                                                                    
     consumer and businesses alike.                                                                                             
                                                                                                                                
     The  data collected  through the  reporting program  is                                                                    
     important  in  Alaska's  exemption  from  the  National                                                                    
     Saltwater Angler  Registry which will  prevent Alaskans                                                                    
     from purchasing a certificate of registration.                                                                             
                                                                                                                                
10:54:53 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE BUCH  pointed out  HB 246  may become  a companion                                                               
bill to SB 294 and asked for an explanation.                                                                                    
                                                                                                                                
MR. ELLIS expressed his understanding  that SB 294 is intended to                                                               
be "a repeal also."                                                                                                             
                                                                                                                                
10:55:53 AM                                                                                                                   
                                                                                                                                
JENNIFER   YUHAS,  Director,   Public  Communications/Legislative                                                               
Liaison, Alaska Department  of Fish & Game  (ADF&G), informed the                                                               
committee that HB 246 is  the priority legislation for ADF&G this                                                               
session.   She recalled  that similar  legislation was  passed by                                                               
the committee last  year without the one-year sunset  clause.  In                                                               
fact, the  sunset was added  by amendment in the  House Resources                                                               
Standing Committee.   Ms.  Yuhas reiterated  the purposes  of the                                                               
bill, and  added that  the bill will  ensure basic  standards for                                                               
sport fishing guides for the benefit  of the public.  She pointed                                                               
out the  department has  attached a  zero fiscal  note indicating                                                               
that   ADF&G   subsidizes   the  costs   associated   with   this                                                               
legislation.                                                                                                                    
                                                                                                                                
10:57:22 AM                                                                                                                   
                                                                                                                                
CHARLES  SWANTON,  Director,  Division   of  Sport  Fish,  Alaska                                                               
Department  of  Fish &  Game  (ADF&G),  explained the  department                                                               
supported the original  legislation that was passed  in 2004, and                                                               
effective  in 2005,  enacting three  main  elements:   collecting                                                               
information on guides and  their activities; establishing minimum                                                               
standards,  such as  safety and  liability  insurance, for  these                                                               
business activities; providing a  comprehensive and credible data                                                               
base on  guided sport fishing activities  for regulatory agencies                                                               
such as the Alaska Board  of Fisheries, the International Pacific                                                               
Halibut  Commission, and  the  North  Pacific Fishery  Management                                                               
Council.   Mr.  Stanton  pointed  out that  fees  are charged  as                                                               
follows:   $100 for a  combination business  owner/operator; $100                                                               
for a business; $50 for a  guide.  He explained that the Division                                                               
of  Sport Fish  has  three primary  harvest  and data  collection                                                               
programs:  the statewide harvest  survey provides a comprehensive                                                               
catch harvest level for various  fisheries; surveys of anglers in                                                               
intensive  fisheries;  guide  licensing  and logbooks.    At  the                                                               
request  of  ADF&G Commissioner  Lloyd,  the  programs are  being                                                               
modernized so that logbook data  and the purchase of licenses can                                                               
be recorded  electronically, and  he described  the possibilities                                                               
thereof.                                                                                                                        
                                                                                                                                
11:02:30 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE MUNOZ  asked how the charter  industry feels about                                                               
the fee structure.                                                                                                              
                                                                                                                                
11:02:50 AM                                                                                                                   
                                                                                                                                
MR. SWANTON restated  the fee structure.   Currently, income from                                                               
license  fees is  about  $242,000, and  the  program costs  about                                                               
$437,000 to administer.  The  difference of $195,000 is offset by                                                               
sport angler license fees.                                                                                                      
                                                                                                                                
REPRESENTATIVE  MUNOZ  remembered   there  was  discussion  about                                                               
raising the fees.                                                                                                               
                                                                                                                                
11:04:04 AM                                                                                                                   
                                                                                                                                
MR.  SWANTON  indicated that  the  fees  have  not changed.    In                                                               
response to  Representative Buch,  he said that  electronic forms                                                               
will accelerate the  process to the point where  his division may                                                               
be able to  provide fish harvest data within one  to two weeks of                                                               
harvest, rather than eight months.                                                                                              
                                                                                                                                
11:05:04 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  BUCH surmised  the  passage  of this  legislation                                                               
means the program will take effect this summer.                                                                                 
                                                                                                                                
MR. SWANTON  stated the intention  is to institute  the scan-able                                                               
logbook sheets for saltwater in  2010, followed by logbook sheets                                                               
for freshwater in 2011.                                                                                                         
                                                                                                                                
11:05:55 AM                                                                                                                   
                                                                                                                                
CHAIR EDGMON opened public testimony.                                                                                           
                                                                                                                                
11:06:10 AM                                                                                                                   
                                                                                                                                
MELVIN  GROVE,  Charter  Operator,   informed  the  committee  he                                                               
operates a charter boat in  Valdez, is affiliated with the Prince                                                               
William Sound Charter Boat Association,  and is testifying on his                                                               
own behalf.   Mr. Grove stated his adamant opposition  to HB 246.                                                               
Although he is not against data  collection, he is opposed to the                                                               
cost of the license.  He  opined that the program was "instituted                                                               
as a  license with a disguise  of paying for the  data collection                                                               
under the  license requirement."   In  2004, the  logbook program                                                               
cost $80,000, and now the  cost is nearly $450,000.  Furthermore,                                                               
the sensors and  surveys for data collection are paid  for by the                                                               
fishing license revenue from his  clients and, as an operator, he                                                               
is charged a fee to support  the logbook program; this appears to                                                               
be "double-dipping" by  the department.  Mr.  Grove expressed his                                                               
hope that  electronic improvements  to the reporting  program may                                                               
lead to a reduction in fees.   Finally, he questioned the benefit                                                               
of data collection  to the charter operators; in  fact, there has                                                               
not been an increase in the  allotment of fish and the release of                                                               
data to federal  authorities has been detrimental  to the charter                                                               
operators.    Mr. Grove  restated  his  opposition to  the  bill;                                                               
however, should  the bill  pass, he  encouraged the  committee to                                                               
retain the 2012 sunset clause.                                                                                                  
                                                                                                                                
11:11:05 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  MUNOZ inquired  as  to  the federal  requirements                                                               
with which charter operators must comply.                                                                                       
                                                                                                                                
11:11:13 AM                                                                                                                   
                                                                                                                                
MR.  GROVE  said  a  federal   limited  entry  program  is  being                                                               
instituted in 2011,  requiring a permit to fish for  halibut.  He                                                               
predicted 38  percent of  the halibut  charter operators  will be                                                               
put out of business because of the limited entry program.                                                                       
                                                                                                                                
REPRESENTATIVE  MUNOZ  asked  whether  there  is  a  compensation                                                               
component.                                                                                                                      
                                                                                                                                
MR. GROVE said no.                                                                                                              
                                                                                                                                
11:12:30 AM                                                                                                                   
                                                                                                                                
KEN  LARSON,   Secretary,  Prince  William  Sound   Charter  Boat                                                               
Association,  stated that  the members  of  his organization  and                                                               
sister organizations want the record  to reflect their opposition                                                               
to HB 246.  While recognizing  the need for the guide and logbook                                                               
program,   the  program   should  not   be  funded   as  it   is.                                                               
Additionally,  many members  support  the  termination or  sunset                                                               
clause  of the  guide license  fees.   He recommended  that ADF&G                                                               
"look for  other funding  sources, like  sport fish  licenses, or                                                               
other  internal funds,  because  ... the  economy has  definitely                                                               
tanked; ...  things like  the one-fish  limit down  in Southeast,                                                               
the  limited entry  program  which  will put  38  percent of  the                                                               
charter, halibut charter  operators out of business  in 2011, and                                                               
...  the program  has  only  generated about  55  percent of  the                                                               
operating expense."   Mr. Larson referred to the  fiscal note and                                                               
pointed out that  the program received no federal  funds from the                                                               
National  Oceanic and  Atmospheric Administration  (NOAA) to  pay                                                               
for  the logbook  data  from  which it  benefits.   Charter  boat                                                               
operators  pay $100  for the  annual state  business license  and                                                               
also  buy  individual  sport  fishing   licenses;  in  fact,  the                                                               
national  registry  only  costs  $25  per angler.    As  NOAA  is                                                               
handling  the halibut  limited entry  permit program,  Mr. Larson                                                               
said he expects  there will charges similar to  those assessed to                                                               
commercial  fisherman.   He stressed  the  inequity of  requiring                                                               
charter operators to  purchase a state business  license, a guide                                                               
license, and  a sport fishing license,  when commercial fishermen                                                               
are  not required  to do  the same.   Mr.  Larson encouraged  the                                                               
committee to allow the legislation to "sunset."                                                                                 
                                                                                                                                
11:15:59 AM                                                                                                                   
                                                                                                                                
CHAIR EDGMON closed  public testimony, and announced  that HB 246                                                               
would be held.