Legislature(2005 - 2006)BUTROVICH 205
01/30/2006 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| HB107 | |
| HB269 | |
| HB251 | |
| SB166 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 107 | TELECONFERENCED | |
| + | HB 269 | TELECONFERENCED | |
| + | HB 251 | TELECONFERENCED | |
| *+ | SB 166 | TELECONFERENCED | |
SB 166-WILDLIFE CONSERVATION TAG
CHAIR THOMAS WAGONER announced SB 166 to be up for
consideration.
SENATOR CON BUNDE, sponsor of SB 166, said it is a simple bill.
He related that hunters and fishers are becoming a minority in
the enjoyment of Alaska's wildlife, but they have borne nearly
the entire cost of Alaska Department of Fish and Game's (ADF&G)
management of wildlife and sport fisheries. SB 166 creates a
system for those who commercially view wildlife on a tour to
step up to the plate and make a contribution by buying a $5
annual wildlife conservation tag.
He said that some people don't want wildlife viewers to
contribute because then they could have a seat at the table, but
that horse is out of the barn. He explained that the tourism
industry already has proposals before the Boards of Fisheries
and Game and has asked the Division of Wildlife to manage the
resources for viewing opportunities. Other people are concerned
about getting taxed for just opening their eyes and looking
around, but that's not the case. The bill exempts people under
16 and over 60 who don't have to pay for other licenses. Other
people have told him they want to be responsible and contribute
to the management of wildlife.
The funds received from the sale of the tags are intended to be
used for management programs that directly benefit the tag
purchasers and thereby alleviating the pressure on the ADF&G to
use hunter and angler dollars for non-consumptive programs. It
would support constructing wildlife viewing infrastructure,
boardwalks, improving access, developing roadside interpretive
signs and other educational programs generally fostering viewer-
related economic development. The intent of this bill is to
provide services to travelers and tourists that enhance their
opportunity to view wildlife thus enhancing the tourist
industry. Alaska had 1.5 million tourists last year and 53
percent of Alaskans go out of their way to watch wildlife; 74
percent want to know more about where and how to see it.
4:10:17 PM
A federal program, called Teaming With Wildlife, has been
endorsed by over 400 Alaskan business and organizations. It has
produced about $3 million in federal funding for non-traditional
non-hunting programs.
4:11:54 PM
SENATOR BERT STEDMAN asked what the difference is between this
bill and a cruise ship head tax bill.
SENATOR BUNDE replied that SB 166 would include everyone who
uses some commercial enterprise to view Alaska wildlife.
4:12:52 PM
SENATOR RALPH SEEKINS asked if the funds generated by this tax
would help garner federal matching funds.
SENATOR BUNDE replied yes.
SENATOR SEEKINS said that the Fish and Game Fund in AS 16.05.130
says that money coming in from hunting licenses, tags and fees,
plus the Pitman Roberts and Dingle Hatch funds, shall be
allocated by the department to programs intended to directly
benefit license purchasers of general hunting, trapping and
fishing licenses and asked if this measure was a counter
balance. Would the money collected from this tag be used for
programs that are not for the direct benefit of the hunters,
fishers and trappers.
SENATOR BUNDE replied that would be a fair characterization, but
added that most hunters are also wildlife viewers.
4:15:37 PM
SENATOR SEEKINS said the conflict is there; hunters object to
spending funds only on programs that don't benefit them
directly.
4:16:32 PM
SENATOR BUNDE added that his intent is to allow those who do not
purchase hunting licenses to contribute to the management of
fish and wildlife resources and that would appear to be a
counter balance.
4:16:52 PM
SENATOR KIM ELTON asked how transportation language on page 2,
line 2, would affect the ski lifts at Girdwood or Eaglecrest
where transportation is provided to the top of the slope in a
setting where one may have an opportunity to view wildlife.
SENATOR BUNDE replied that it is not his intent to impact ski
lift operations where seeing wildlife is incidental. However, he
would target a flight seeing tour or any other number of
commercial ventures that have wildlife viewing as a goal.
4:18:22 PM
SENATOR ELTON asked how it would impact situations in Juneau
where people purchase tickets on a vessel to view whales that
aren't managed by the state. He asked if it is a stretch to
collect a fee to view federally managed marine mammals.
SENATOR BUNDE replied they could see other state wildlife.
SENATOR ELTON said he is bothered by collecting fees that don't
find their way back to that specific use - like state park fees
that often don't go back to maintenance of state parks and
business license fees that may cost $200, but don't go back to
the Department of Commerce. He asked how much would really go
back.
SENATOR BUNDE deferred that answer to the commissioner of Alaska
Department of Fish and Game (ADF&G), but his experience has been
that duck stamp fees have found their way back to the
intentioned area.
4:21:13 PM
SENATOR ELTON asked if he considered taking the Alaska Railroad
from his home in Anchorage to Seward, would he get charged.
SENATOR BUNDE replied that he wouldn't get charged for traveling
to and from a residence.
SENATOR ELTON asked if you get to Seward and take a whale-
watching vessel and buy a tag, would you get a credit for that
$5 when you buy your hunting license and duck stamp in the fall.
SENATOR BUNDE replied that you have to buy a hunting license
first to not have to pay the wildlife conservation fee.
4:23:42 PM
SENATOR ELTON asked if a commercial transporter would have any
liability if he doesn't ask for proof of a tag.
LAUREN RICE, staff to Senator Bunde, replied that a provider of
the service is not penalized, but if a person knowingly fails to
purchase a wildlife conservation tag, he is treated the same as
a hunter hunting without a license, a Class A misdemeanor with a
fine up to $300.
SENATOR ELTON said he wanted a definitive answer on whether a
provider has liability.
4:25:14 PM
SENATOR SEEKINS asked if he has a hunting license, does he have
to buy another tag.
SENATOR BUNDE replied no, if you have an Alaska hunting license,
you are exempt.
CHAIR WAGONER asked if someone who is over 60 years old and has
a permanent license is exempt from purchasing this tag.
SENATOR BUNDE replied yes.
SENATOR STEDMAN asked why the Alaska Marine Highway System was
excluded since people use it as a cruise ship in the summer.
SENATOR BUNDE said he did not intend to charge people who just
drive on the highway or take the Alaska Marine Highway, but he
offered to entertain an amendment if Senator Stedman wanted to
include them.
4:27:29 PM
SENATOR ELTON said he thought the language meant that people
riding the Alaska Marine Highway would be charged unless they
were traveling to or from their home.
SENATOR BUNDE referenced language on page 3, line 12, that
focused on people traveling to and from their residence, but it
appears that tourists would not be exempt from purchasing a tag.
MS. RICE added that a person who could prove he was traveling to
or from his home would be exempt on the Marine Highway. Non-
residents would have to pay as would residents who would be
taking a leisure trip.
4:29:58 PM
SENATOR STEDMAN asked if a spouse who travels with an individual
with a hunting license has to pay the fee.
MS. RICE replied yes.
SENATOR BUNDE pointed out that this tag is a yearly purchase.
SENATOR ELTON said he needed clarification that a person
traveling on the Alaska Railroad or the Marine Highway from
Haines to Juneau to shop for food didn't have to pay a fee.
CHAIR BUNDE suggested that the $5 fee would not be noticeable on
top of a $300 or $400 ferry ticket.
MS. RICE added if an individual was going from his home to
another destination, he would technically be exempt.
4:32:55 PM
JOHN PAGE, Seward, said he thought this tax would
disproportionately impact smaller businesses like his. He is a
tour provider and his tours are priced less than those booked on
a tour ship. He was concerned about how the program would be
administered because many visitors to the state do multiple
tours and they often use online booking or calling on a phone,
which would make verification difficult. He also asked how they
would guarantee that the money would be channeled back to
conservation and if a board would oversee how those monies would
be spent. Finally, he asked for an estimate of how many dollars
this program would generate.
CHAIR WAGONER answered that it should generate $4.6 million to
$5.8 million between FY 2007 and FY 2012.
4:36:52 PM
CHAIR BUNDE explained that an individual must have a tag in
order to not be assessed another fee.
DAN MCDONALD, Seward, opposed SB 166 because it targets tourism.
It would put smaller tour operators at a disadvantage to the
more expensive ones. He mentioned that all tour operators
currently have to deal with the price of fuel going up and the
state is benefiting from the price of fuel going up. The $5 fee
seems to be unreasonable once administration of it is accounted
for, he didn't see much of it going to actually promote
conservation.
KIM KIRBY, Southeast Sea Kayaks, opposed SB 166 because it
targets visitors and residents alike. She thought that Alaska
would do irreparable harm to its image by taxing wildlife
viewing. People already pay a premium to get up here and to live
here and the state is trying to encourage visitors. She was also
concerned that as a small business owner, the onus will fall on
her to police the system, which might require hiring another
person.
LEN LAURANCE said he represented Alaska Rainforest Sanctuary,
Inter Island Ferry Authority (IFA) and Taquan Air. He noticed
that the Alaska Marine Highway, as a public entity, is exempt
from bond requirements, but SB 166 treats the IFA differently.
The $5 fee would have a negative impact on the revenues of the
IFA, which is not subsidized and is totally dependent on the
revenues it generates to cover operating costs.
He said the Alaska Rainforest Sanctuary is a privately operated
30-acre nature preserve on the Ketchikan road system. He asked
how this bill would apply to this kind of private tour property.
The third business he represents is Taquan Air, a local flight
seeing operator and he asked if this fee would apply to Misty
Fjords Flight Seeing that focuses on scenic wonders and not
wildlife viewing. Taquan also has viewing trips where people
actually land and take a trail into the Tongass National Forest.
Taquan Air pays a per person user fee to the U.S. Forest Service
for that use. He asked if this would add another fee to that
activity. He concluded saying:
Instead of improving tourism, this legislation would
tend to kill the goose that lays the golden egg. It
would also be an administrative nightmare from a tour
operator's point of view.
4:45:22 PM
CHAIR WAGONER noted that when people are viewing wildlife on the
Rainforest Sanctuary, the wildlife is not privately owned.
MR. LAURANCE responded that they wouldn't be classified as
wildlife. They have a half dozen reindeer that were purchased
and those require a permit to be kept. The guests also view
Alaskan reindeer, which are not wild.
CHAIR WAGONER asked if they are supplying domesticated animals.
MR. LAURANCE added that they are not supplying the eagles,
because they just come and go.
4:47:06 PM
SENATOR ELTON related that some interpretations of federal law
say you can't apply a sales tax to flight seeing operations in
which a plane takes off and lands at one location and he thought
the sponsor might want to consider.
SENATOR BUNDE responded that if the Misty Fjords' advertisement
mentions wildlife, this fee would certainly apply. He has also
lived in Ketchikan and knows Misty Fjords and, "You'd have to be
blind in one eye and not be able to see out of the other to
travel that area and not see Alaska wildlife." He was not sure
how a $5 charge that only applies to non-residents and residents
not coming to and from their home would put them under water.
He thought revenue from this tag would really enhance the
state's support for tourism, because, in his view, this industry
returns so little to the general fund now that's it's hard to
justify increased state investment in it.
SENATOR STEDMAN said he wanted a definitive answer on how it
would apply to the Inter Island Ferry and other aviation
enterprises.
4:50:01 PM
SENATOR ELTON informed the committee that the Inter Island Ferry
is not a part of the Alaska Marine Highway and therefore has no
exemption from bonding.
4:50:53 PM
CHUCK SLAGLE, Baranof Skiff Excursions, said that $5 does make a
difference to his profit margin. "It's nothing more than a head
tax with a different name on it." He said this state is getting
a reputation for greed and asked, "Where does it stop?" He said
the one-day fishing license fee was raised from $10 to $20 this
year. That is a 100 percent increase so that a grayling hatchery
could be built in Fairbanks and he didn't know how much would be
eaten up by a new bureaucracy to manage it.
STAN STEVENS, Stan Stephens Charters, opposed SB 166. He was
against targeted taxes. He wanted to see an income or sales tax,
because they would show how valuable tourism is to this state.
He also agreed with others that this would be an administrative
nightmare. He runs a daily average of 300 people through his
business and none of them are from tour ships. They are
independent travelers or mostly Alaskans.
SCOTT REISLAND, Denali Grizzly Bear Resort, said he is also
representing the Alaska Campground Owners Association. They were
both concerned about this bill's impact on the RV industry and
the fly and drive rental businesses. It was unclear that they
would be included or exempted. It would be difficult for him to
pull everyone out of their RVs to make sure they have a stamp
and would require him to hire one other person.
4:59:22 PM
He mentioned that some visitors to Denali Park don't see animals
for different reasons and that a $5 user fee is about 20 percent
of the cost of the fee at the San Diego Zoo where people are
guaranteed to see animals.
5:00:24 PM
CHAIR WAGONER said he didn't know of anyone marketing a trip or
wildlife viewing tour that mentions how much sales tax or fees
are included. He asked Mr. Reisland if he markets his packages
that way.
MR. REISLAND responded that he breaks down his costs in his
marketing.
5:01:05 PM
SENATOR BUNDE responded that RV parks are not included in SB
166. He pointed out that hunters and fishers buy a license to
hunt, but not a license to kill or to catch. Hunters go away
disappointed, as well. He emphasized that buying a wildlife
viewing tag is paying for an opportunity to attempt to view, not
a guarantee. The vendors get $1 a piece for every one of the
tags they sell to cover their administrative costs.
5:01:57 PM
SENATOR ELTON said the argument could be made that someone who
rents an RV is a provider of commercial transportation.
SENATOR BUNDE thanked him for pointing that out and he added
that he thought this tag would be mainly self-policed and that
he has received emails from tourists saying they would be happy
to pay an extra $5 to have a bigger voice in conservation
management.
5:03:26 PM
RON PECK, President, Alaska Travel Industry, agreed with
previous testimony in opposition to SB 166 regarding
application, reputation, implementation, execution and
administration. He noted the exemption for RV users who
regularly see wildlife and questioned how trams that are
operated in the summer would be affected. The one at Alyeska
costs $16 right now and he has frequently seen black bears on
that trip. He questioned how people riding the Marine Highway or
the Alaska Railroad would be affected and how a penalty would be
assessed to a non-stamp holder.
5:08:23 PM
CHAIR WAGONER announced that SB 166 would be held for further
testimony on February 6 and adjourned the meeting at 5:09:19 PM.
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