05/04/2006 09:00 AM Senate FINANCE

                                                                                                                                
     CS FOR HOUSE BILL NO. 307(RES)                                                                                             
     "An Act creating the Knik River Public Use Area."                                                                          
                                                                                                                                
                                                                                                                                
This was the  second hearing for this bill in  the Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Green  announced that a Senate  Finance Committee Letter                                                               
of Intent  was developed  to address  concerns raised  by members                                                               
during the bill's first hearing.                                                                                                
                                                                                                                                
Co-Chair  Green moved  to adopt  the Committee  Letter of  Intent                                                               
(LOI) and read it into the record as follows.                                                                                   
                                                                                                                                
                           Letter of Intent                                                                                     
                       Senate Finance Committee                                                                                 
                            CS HB 307(RES)                                                                                      
                                                                                                                                
     It is the  intent of the 24th Alaska  State Legislature that                                                               
     the  Department of  Natural  Resources evaluate  instituting                                                               
     user  fees to  pay the  long term  costs for  management and                                                               
     necessary facilities  associated with the public  use of the                                                               
     Knik Public Use  Area established under House  Bill 307. The                                                               
     department should consider  such fees as a  component of the                                                               
     Management Plan that will be prepared under AS 41.23.190.                                                                  
                                                                                                                                
Senator Stedman  spoke in  opposition to  the establishment  of a                                                               
user fee program and, therefore, objected to adopting the LOI.                                                                  
                                                                                                                                
9:07:07 AM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken  pointed out  that  the  inclusion of  the  word                                                               
"evaluate"  was key  to  his  support of  the  LOI,  as it  would                                                               
require the  Department to  develop a plan,  which would  then be                                                               
presented to the Legislature for "some sort" of approval.                                                                       
                                                                                                                                
Co-Chair Green characterized  the Knik Public Use  Area (KPUA) as                                                               
an "unwieldy area" in which to  institute a user fee program, as,                                                               
rather than  being a park  at which  money could be  collected at                                                               
the  gate, this  is "an  open area"  with many  entry points.  An                                                               
appropriate  user fee  program must  be developed.  Options could                                                               
include the purchase  of a bumper sticker,  card, or certificate.                                                               
While  a  user  fee  program  "would not  be  an  easy  thing  to                                                               
implement", it is worthy of discussion.                                                                                         
                                                                                                                                
9:08:27 AM                                                                                                                    
                                                                                                                                
Senator Dyson,  while appreciating the  intent of the  LOI, asked                                                               
the sponsor's opinion of it.                                                                                                    
                                                                                                                                
9:08:35 AM                                                                                                                    
                                                                                                                                
BEN MULLIGAN,  Staff to Representative  Bill Stoltze,  the bill's                                                               
sponsor, noted  that Representative Stoltze was  comfortable with                                                               
the  language since  it specified  that the  implementation of  a                                                               
user  fee would  be "evaluated".  This language  would allow  any                                                               
proposed fee structure to be reviewed by the Legislature.                                                                       
                                                                                                                                
Senator Bunde  noted that  numerous user  fee programs  have been                                                               
successfully  implemented   in  the   State.  For   example,  the                                                               
Anchorage  Ski Club  sells a  pin to  generate money  to maintain                                                               
their  trails.  While  the  purchase of  the  pin  is  voluntary,                                                               
pressure is  exerted on users  to purchase  one. The State  has a                                                               
snowmobile registration fee that  generates money for snowmachine                                                               
trail maintenance.                                                                                                              
                                                                                                                                
Senator Bunde  pointed out that  this legislation would  not have                                                               
been  introduced   had  users   of  the   KPUA  area   been  more                                                               
responsible.  Implementation   of  a   user  fee   program  would                                                               
accomplish two  things: people  who paid the  fee "would  be less                                                               
tolerant of the scofflaws" and  the funds it generated would help                                                               
"care for the area".                                                                                                            
                                                                                                                                
9:10:29 AM                                                                                                                    
                                                                                                                                
Senator  Stedman was  disinterested  in establishing  a user  fee                                                               
precedence for areas  beyond the KPUA. The  prospect of requiring                                                               
people  to pay  user fees  or  to place  identifying stickers  on                                                               
their boats or  recreational vehicles to recreate,  hunt, or fish                                                               
on  State or  federal lands,  such  as the  United States  Forest                                                               
Service  managed land  in Southeast  Alaska, was  unappealing. He                                                               
was  "adamantly opposed"  to the  language in  the LOI.  It could                                                               
diminish the bill's ability to be adopted by the Legislature.                                                                   
                                                                                                                                
9:11:16 AM                                                                                                                    
                                                                                                                                
Senator  Bunde  pointed  out  that recreation  in  the  State  is                                                               
already  being   paid  for,   as  such   things  as   small  boat                                                               
registration fees  already exist. In order  to support recreation                                                               
programs, the  State must either  implement user fees  or utilize                                                               
the State's general funds.                                                                                                      
                                                                                                                                
Co-Chair  Green asked  whether Senator  Bunde  could suggest  any                                                               
alternate funding source.                                                                                                       
                                                                                                                                
Senator Bunde could not.                                                                                                        
                                                                                                                                
9:11:48 AM                                                                                                                    
                                                                                                                                
Senator Dyson noted that, for  a long time, hunters and fisherman                                                               
have  willingly purchased  fishing and  hunting licenses,  as the                                                               
proceeds  from  those licenses  are  used  to fund  research  and                                                               
resource  management   activities.  He   did  not   believe  that                                                               
implementing  a   fee  structure   in  the   KPUA  would   set  a                                                               
recreational use  fee precedent  because the  purpose of  the fee                                                               
would be to  limit damage being done  in the area and  to pay for                                                               
the cost of  policing it. He agreed with Co-Chair  Green that the                                                               
area was  difficult to  work with. The  proposal could  either be                                                               
considered "brilliant" or at a  minimum "a well thought out first                                                               
step" towards a solution.                                                                                                       
                                                                                                                                
Co-Chair  Green  added  that the  difficulty  in  addressing  the                                                               
concerns about the area is compounded  by the fact that it is "in                                                               
such close  proximity to where  people live". The "great  deal of                                                               
interest" in  how the  area should be  managed has  increased the                                                               
conflicts.                                                                                                                      
                                                                                                                                
Senator Stedman maintained his objection to adopting the LOI.                                                                   
                                                                                                                                
9:13:31 AM                                                                                                                    
                                                                                                                                
Senator Olson,  who was unfamiliar  with the area,  asked whether                                                               
implementing  a  user fee  would  assist  in deterring  "nuisance                                                               
behavior",  specifically  "the  discharging  of  firearms  in  an                                                               
unwise manner".                                                                                                                 
                                                                                                                                
Co-Chair  Green   responded  that   the  Department   of  Natural                                                               
Resources (DNR)  might hire "caretakers"  to police the  area for                                                               
illegal  activities,  particularly  during  evening  and  weekend                                                               
hours  when the  use  of  the area  is  the heaviest.  Additional                                                               
funding  might be  required  in the  future  to support  policing                                                               
efforts. While the State's general  fund is not typically used to                                                               
fund this type  of activity, this might be  "an exception because                                                               
it is  such a unique" and  heavily used area. While  the majority                                                               
of people using the area  are respectful and law-abiding, five to                                                               
ten percent of the users  are scofflaws. Peer pressure might have                                                               
some affect  were the  implementation of  a user  fee to  fail to                                                               
alter deviant behavior.                                                                                                         
                                                                                                                                
A roll call was taken on the motion to adopt the LOI.                                                                           
                                                                                                                                
IN  FAVOR: Senator  Bunde, Senator  Dyson,  Senator Hoffman,  Co-                                                               
Chair Wilken and Co-Chair Green                                                                                                 
                                                                                                                                
OPPOSED: Senator Stedman and Senator Olson                                                                                      
                                                                                                                                
The motion PASSED (5-2)                                                                                                         
                                                                                                                                
The Letter of Intent was ADOPTED.                                                                                               
                                                                                                                                
Senator Dyson  moved to  report the bill  and the  Senate Finance                                                               
Committee  Letter  of  Intent   from  Committee  with  individual                                                               
recommendations and accompanying fiscal note.                                                                                   
                                                                                                                                
Without  objection,  CS  HB  307(RES)   and  the  Senate  Finance                                                               
Committee Letter  of Intent were  REPORTED from Committee  with a                                                               
new $356,800  fiscal note dated  May 3, 2006 from  the Department                                                               
of Natural Resources.                                                                                                           
                                                                                                                                
AT EASE 9:16:18 AM / 9:16:38 AM