04/17/2000 02:05 PM House FIN

CS FOR SENATE BILL NO. 283(RES)                                                                                               
                                                                                                                                
     "An  Act establishing  the  shore fisheries  development                                                                   
     lease program  account and the timber  receipts account;                                                                   
     relating  to the  accounting  for  and appropriation  of                                                                   
     revenue from the state land  disposal program, the shore                                                                   
     fisheries  development  lease  program,  and  the  state                                                                   
     timber disposal program;  and providing for an effective                                                                   
     date."                                                                                                                     
                                                                                                                                
BOB LOEFFLER,  DIRECTOR, DIVISION OF MINING,  LAND AND WATER,                                                                   
DEPARTMENT OF  NATURAL RESOURCES testified in  support of the                                                                   
legislation. The  legislation creates a land  disposal income                                                                   
fund, which would  be a statutory designated  program receipt                                                                   
fund for the  purpose of land disposal. The  legislation also                                                                   
creates  separate  funds  for   shore  fisheries  and  timber                                                                   
harvest  receipts.   The  income  fund  would   allow  income                                                                   
generated  from  the  1,200  leases  to  supply  a  level  of                                                                   
services  that  the  fisherman  and  department  believe  are                                                                   
deserved,  to  run  the program.  A  moderate  land  disposal                                                                   
program  would  be funded  from  revenues generated  by  land                                                                   
disposals.  The  income would  pay  for  the cost  and  allow                                                                   
programs  to  be stabilized.  The  same  would apply  to  the                                                                   
timber harvest program.                                                                                                         
                                                                                                                                
In  response  to  a  question  by  Co-Chair  Therriault,  Mr.                                                                   
Loeffler observed  that the shore  fisheries program  was cut                                                                   
from $300  to $100 thousand dollars.  This was not  enough to                                                                   
run the  program. Income from  the leases would  provide $300                                                                   
thousand dollars to run the program.                                                                                            
                                                                                                                                
In  response  to  a  question  by  Co-Chair  Therriault,  Mr.                                                                   
Loeffler  observed that  the department  recommended a  self-                                                                   
executing   registration   process   to  deal   with   budget                                                                   
reductions.  The  fisherman objected  to  the  self-executing                                                                   
registration  process   and  pointed   out  that  it   was  a                                                                   
reductions of services below the revenues from the leases.                                                                      
                                                                                                                                
SANDY  UMLAUF,  PRESIDENT, UGASHIK  SET  NETTER  ASSOCIATION,                                                                   
Kenai  testified   via  teleconference  in  support   of  the                                                                   
legislation.   She   observed  the   Association   represents                                                                   
approximately 65 set net permits.  The legislation reinstates                                                                   
a  self-sustaining,  income  producing  program  that  offers                                                                   
organization  and stability for  statewide shore  fish leases                                                                   
and provides  a means  for conflict  resolution. The  program                                                                   
has an  income of  $350 thousand  dollars from  leases  and a                                                                   
cost  of $300  thousand dollars.  She observed  that set  net                                                                   
sites are frequently hotly contested.                                                                                           
                                                                                                                                
KARL   KIRCHER,    EXECUTIVE   DIRECTOR,    KENAI   PENINSULA                                                                   
FISHERMAN'S ASSOCIATION,  KENAI testified via  teleconference                                                                   
in support  of SB 283. He  observed that AS  38.05 stipulates                                                                   
that  the   director  shall   establish  a  reasonable   rent                                                                   
structure for  shore fishing development leases  equal to the                                                                   
administrative    cost   for    processing   the    leasehold                                                                   
application. He observed that  the program has generated more                                                                   
revenue than it  has cost to operate the program  since 1993.                                                                   
He  stressed that  fees should  be  reduced if  the level  of                                                                   
service  is  reduced.  He spoke  against  the  self-executing                                                                   
registration.                                                                                                                   
                                                                                                                                
PAUL SHADURA,  KENAI testified via teleconference  in support                                                                   
of section  3 of SB 283. His  family has set netted  for over                                                                   
60 years.                                                                                                                       
                                                                                                                                
ROGER  KUCHENBECKER, MATSU  testified  via teleconference  in                                                                   
support of the  legislation. He has set-netted  for 13 years.                                                                   
He spoke  in support of full  funding of the  shore fisheries                                                                   
lease program.  He stressed that  the program more  than pays                                                                   
for itself.                                                                                                                     
                                                                                                                                
DAN  CHALLUP,  KACHEMAK  BAY  SALMON  PRODUCERS  COOPERATIVE,                                                                   
HOMER  testified   via  teleconference  in  support   of  the                                                                   
legislation. He hoped that the  legislation would protect the                                                                   
program from future budget reductions.                                                                                          
                                                                                                                                
In response to  a question by Vice Chair Bunde,  Mr. Loeffler                                                                   
stated  that the  program is  limited  to anyone  who owns  a                                                                   
valid limited entry permit.                                                                                                     
                                                                                                                                
In  response  to  a  question  by  Co-Chair  Therriault,  Mr.                                                                   
Loeffler  explained that  there is no  timber program  fiscal                                                                   
note.  He  noted  that  the timber  program  has  an  erratic                                                                   
history and is difficult to predict.                                                                                            
                                                                                                                                
Representative  Foster MOVED to  report CSSB 283(RES)  out of                                                                   
Committee with the accompanying  fiscal notes. There being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSSB 283(RES) was REPORTED out  of Committee with a "do pass"                                                                   
recommendation  and  with  two  fiscal  impact  note  by  the                                                                   
Department of Natural Resources, published 3/31/00.