Legislature(2015 - 2016)BELTZ 105 (TSBldg)
04/12/2016 01:30 PM Senate LABOR & COMMERCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB203 | |
| SB118 | |
| HB125 | |
| HB314 | |
| SB206 | |
| HB254 | |
| SB55 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 203 | TELECONFERENCED | |
| += | SB 118 | TELECONFERENCED | |
| += | SB 156 | TELECONFERENCED | |
| += | HB 125 | TELECONFERENCED | |
| += | HB 314 | TELECONFERENCED | |
| += | SB 206 | TELECONFERENCED | |
| + | HB 254 | TELECONFERENCED | |
| += | SB 55 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 254-EXTEND BIG GAME COMMERCIAL SERVICES BOARD
2:26:34 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of HB 254. She relayed the intent to hear from the
sponsor, hear a legislative audit update, hear from the
administration, take questions and public testimony, and look to
the will of the committee.
2:27:01 PM
STEVE HANDY, Staff, Representative Louise Stutes, Alaska State
Legislature, introduced HB 254 on behalf of the sponsor speaking
to the following sponsor statement:
House Bill 254 extends the Big Game Commercial Service
Board's (BGCSB) sunset date from June 30, 2016, to
June 30, 2019.
The BGCSB provides a legislative command to assist in
resource conservation and consumer protection. The
Board develops professional and ethical standards,
administers exams, makes final licensing decisions and
takes civil action against persons who violate
regulations.
The BGCSB is staffed by the Division of Corporations,
Business and Professional Licensing. The BGCSB
consists of two licensed Registered Guide
two licensed Transporters, two private landholders,
two public members, and one member from the Board of
Game. Board members are appointed by the Governor and
confirmed by the Legislature.
The Board's regulated professions include Assistant
Guide, Class
Guide
Registered Guide
and Transporter.
MR. HANDY noted that the McDowell Group reported in 2012 that
guided hunting in Alaska accounted for 2,210 jobs and $35
million in labor income, generated $78 million in economic
activity, and brought in nearly $2 million from hunting licenses
and big game tags.
MR. HANDY mentioned the legislative audit and posited that an
oversight by the legislature that allowed the board to sunset
contributed to some of that debt. He noted that the legislature
reinstated the board in December 2015 and SB 206 will extend the
current sunset to 2019. He concluded saying that the Big Game
Commercial Services Board is essential to the safety of hunters,
guides and transporters and to the management of the resource
itself. He requested the committee pass HB 254.
CHAIR COSTELLO asked him to submit his comments to the committee
in written form.
SENATOR STEVENS asked what happens if the bill doesn't pass.
MR. HANDY replied the board will sunset on June 30, 2016 and
will completely shut down in about one year.
2:31:01 PM
SENATOR MEYER asked if he read that the board is running a $1
million deficit.
MS. HANDY said he believes it has decreased substantially since
that number was published. He deferred further comment on the
deficit to the auditor.
2:31:37 PM
KRIS CURTIS, Legislative Auditor, Division of Legislative Audit,
related that the division conducted a sunset review looking at
whether the Big Game Commercial Services Board was serving the
public interest and should be extended. Overall, the audit found
the board provided assurance that individuals licensed to guide,
outfit hunts, and transport hunters to and from hunt locations
are qualified to do so. Also, the board's regulation and
licensing of qualified guides, guide-outfitters, and
transporters benefited the public safety and safeguarded the
state's wildlife resources.
In recognition that the board reported a $1 million deficit as
of April 30, 2015, the division recommended a conditional three-
year extension. The condition is the board demonstrate in
January that it has the capacity to address its deficit. When
the audit was done last summer, there were proposed regulations
to increase licensing fees and add new activity fees. Both the
division and the board believed those fees would be able to
address the deficit, but the regulations were in draft form at
the time of the audit.
MS. CURTIS said the audit also recommended four operational
improvements. The first was to the director of the Division of
Corporations, Business and Professional Licensing (DCBPL) to
ensure that staff adhere to procedures to provide efficient and
effective support to the board. This is a repeat finding and
while there were some improvements, problems continue in the
area of public noticing exams and meetings. Additional
improvement was recommended in those areas.
The second recommendation was for the director of DCBPL to take
steps to improve the timeliness of investigations. The audit
looked at 25 investigative cases and 17 had periods of
inactivity. According to the lead investigator, this was due to
a lack of resources to address the large case load. The audit
also found problems with effective case monitoring.
The third recommendation was for the board and the director of
DCBPL to work together to increase licensing fees to address the
board deficit. This is the third time an audit has recommended
addressing the deficit. The 2011 audit found the board had a
deficit of $374 thousand, and the audit warned that it was
likely to increase if the board did not increase fees or reduce
expenditures. The deficit as of April last year was over $1
million. The growth was due to various factors. The board
delayed increasing the fees, there was a reduction in the number
of license renewals, and the division reallocated its indirect
costs that resulted in another $200 thousand increase in the
deficit.
To address the deficit after the 2011 audit, the division
proposed an increase in fees between 61 percent and 68 percent.
The division did not carry through and raise the fees at that
point, but did increase them about 44 percent in FY2014.
However, the revenues were not enough to cover expenditures and
the deficit continued to grow. The division has indicated it
will raise fees and the belief is that those will be effective
in addressing the deficit.
The fourth recommendation is for the division director to ensure
that the transporter license renewal application form complies
with statute. The statute requires the licensees to sign an
affidavit in the application that all activity reports have been
filed with the department. The audit found no affidavit.
MS. CURTIS reported that overall, the department and board
concurred with all the recommendations.
2:37:40 PM
SENATOR STEVENS asked if her office monitors the board's
progress in following the recommendations of the audit.
MS. CURTIS said there is no mechanism to formally monitor
progress unless the audit division is formally requested to do
so.
2:38:31 PM
SARAH CHAMBERS, Operations Manager, Division of Corporations,
Business and Professional Licensing, Department of Commerce,
Community and Economic Development (DCCED), introduced herself.
SENATOR GIESSEL said she assumes that the $20 thousand reflected
in the narrative of the fiscal note is for board travel.
MS. CHAMBERS confirmed the travel is for board members and one
staff to attend board meetings. Typically there are two each
year, one in Anchorage and one in Fairbanks.
SENATOR GIESSEL suggested the board find ways to reduce
traveling costs.
CHAIR COSTELLO asked her to comment on the work to improve the
financial standing of boards and her role in helping to address
the recommendations in this audit.
MS. CHAMBERS advised that the division has been working for
several years with legislative finance, the director of
administrative services, and the boards to improve the fee
analysis structure by making it more detailed. She noted that
board members now receive an interactive Excel spreadsheet that
gives a better picture of the impact of different fees. She said
that while fees were raised in 2013 and 2015, Legislative
Finance warned that trying to eradicate the deficit in one fell
swoop would probably put many of the guides and transporters out
of business.
She explained that the board and division paid special attention
to ensure that non-contracting guides are not penalized. Some of
the burden was placed on guides that contract and they also
looked for new revenue sources. The hot record and transporter
activity report database was restructured in response to the
2011 legislative audit, and a fee was attached to compensate for
staff time helping state troopers fulfil their statutory need
for that information.
2:43:33 PM
SENATOR STEVENS asked who is objecting to the fee increases.
MS. CHAMBERS replied transporters, in particular, have expressed
concern about the impact of the new transporter activity report
fee on their businesses. She has met twice with the transporter
subcommittee to solicit new ideas, but the bottom line is that
it's necessary to go forward with the deficit reduction.
SENATOR STEVENS commented that it sounds as though the fee
structure is in some form of evolution.
MS. CHAMBERS clarified that last November the fees for this
renewal period were adopted by the director and signed by the
lieutenant governor. The deficit was below $900 thousand after
the second quarter and the third quarter report is anticipated
to show additional reduction. She maintained that the division
has met the legislative commitment to set fees and will continue
to review them through the annual fee analysis.
2:46:31 PM
SENATOR GIESSEL suggested that transporters pass the licensing
fees on to their clients. She pointed out that other boards are
subsidizing the shortfall of the Big Game Commercial Services
Board and it can't go on. She asked what the transporter license
fee is currently.
MS. CHAMBERS replied it is $850 every two years.
SENATOR GIESSEL pointed out that the fee isn't as high as for
other licensed professions such as direct entry midwives. She
called on guides, outfitters, and transporters to step up and
take responsibility.
2:48:52 PM
CHAIR COSTELLO opened public testimony on HB 254.
2:49:06 PM
SAM ROHRER, President, Alaska Professional Hunters Association
(APHA), testified in support of HB 254. He said the board is
critical to the long-term viability of the guide industry. It
provides a conduit for meaningful input on regulations and
provides for reasonable testing standards. He highlighted that
the guiding industry supported the most recent fee increases. He
encouraged the committee to move the bill today.
2:50:20 PM
DICK ROHRER, representing himself, Kodiak, Alaska, testified in
support of HB 254. He related that he became involved in the
guiding industry in 1965 when he moved to Alaska and has been
through various sunsetting and reinstatement of the board. He
also served two terms on the board, beginning in 2005, after the
board was reinstated. At that time the board, with Senator
Steven's help, was able to clarify that privately owned cabins,
particularly in remote areas, could be rented to big game
hunters without the owner being required to have a guide or
transporter license. That favored resident hunters. He also
clarified that the point-to-point air taxi operators that do not
advertise specifically for transporting hunters or don't charge
an extra fee are not required to have a transporter license.
Therefore, resident hunters that choose to use air taxi services
are not affected. As a past board member, he encouraged the
committee to move the bill today.
SENATOR STEVENS asked Dick Rohrer if he supports the fee
increases.
DICK ROHRER confirmed that he supports the fees and expressed
strong support for the current chief investigator. He expects
she will bring investigative costs under control and good
progress will be made in the next three years.
2:55:06 PM
CHAIR COSTELLO closed public testimony on HB 254. She stated her
intent to move the bill to give Senate Finance time to review
it.
2:55:16 PM
At ease
2:59:01 PM
CHAIR COSTELLO reconvened the meeting and reopened public
testimony.
2:59:24 PM
ROD ARNO, Executive Director, Alaska Outdoor Council (AOC),
testified in support of HB 254. He said the Big Game Commercial
Services Board is needed now more than ever. As federal land
managers change their purpose, the guiding industry will be in a
pinch on federal lands which will put more pressure on state
lands. That is where most Alaskan residents are hunting,
particularly those from non-subsistence areas. He urged the
committee to pass the bill to extend the sunset on the board.
SENATOR GIESSEL requested he pass along her comments that other
boards have been subsidizing the Big Game Commercial Services
Board for many years, and it's time for these professions to
step up.
MR. ARNOS replied the AOC supports the increased fees.
3:01:28 PM
CHAIR COSTELLO closed public testimony on HB 254.
3:01:37 PM
SENATOR GIESSEL moved to report HB 254, labeled 29-LS1309\A,
from committee with individual recommendations and attached
fiscal note(s).
CHAIR COSTELLO announced that without objection, HB 254 is
reported from the Senate Labor and Commerce Standing Committee.