Legislature(2021 - 2022)ADAMS 519

02/24/2022 01:30 PM House FINANCE

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Audio Topic
01:07:20 PM Start
01:34:53 PM HB281 || HB282
01:36:33 PM Overview: Department of Commerce, Community and Economic Development
02:17:19 PM Overview: Department of Military and Veterans Affairs
02:38:26 PM Overview: Department of Fish and Game
03:12:27 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 281 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 282 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ Overview: Department of Commerce, Community and TELECONFERENCED
Economic Development by Micaela Fowler,
Administrative Services Director
+ Overview: Department of Military and Veterans TELECONFERENCED
Affairs by Deputy Commissioner Craig Christenson
and Bob Ernisse, Administrative Service Director
+ Overview: Department of Fish and Game by TELECONFERENCED
Commissioner Doug Vincent-Lang
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 281                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;    making   reappropriations;    making                                                                    
     supplemental   appropriations;  making   appropriations                                                                    
     under art.  IX, sec.  17(c), Constitution of  the State                                                                    
     of Alaska, from the constitutional budget reserve                                                                          
     fund; and providing for an effective date."                                                                                
                                                                                                                                
HOUSE BILL NO. 282                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive  mental  health program;  making  capital                                                                    
     appropriations  and  supplemental  appropriations;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
1:36:09 PM                                                                                                                    
                                                                                                                                
^OVERVIEW:  DEPARTMENT OF  COMMERCE, COMMUNITY  AND ECONOMIC                                                                  
DEVELOPMENT                                                                                                                   
                                                                                                                                
1:36:33 PM                                                                                                                    
                                                                                                                                
MICAELA    FOWLER,    ADMINISTRATIVE   SERVICES    DIRECTOR,                                                                    
DEPARTMENT OF COMMERCE,  COMMUNITY AND ECONOMIC DEVELOPMENT,                                                                    
provided  a PowerPoint  presentation  titled "Department  of                                                                    
Commerce, Community and  Economic Development: House Finance                                                                    
FY2023 Overview,"  dated February  24, 2022 (copy  on file).                                                                    
She  reviewed  the  Department of  Commerce,  Community  and                                                                    
Economic Development  (DCCED) mission  to promote  a healthy                                                                    
economy,  strong  communities,   and  protect  consumers  in                                                                    
Alaska (on  slide 2). She  addressed the DCCED  structure on                                                                    
slide 3.  The department  had six  core and  seven corporate                                                                    
entities.  She stated  the department  was very  diverse and                                                                    
busy.  Additionally,   DCCED  housed  the   Alaska  Railroad                                                                    
Corporation, which was exempt  from the Executive Budget Act                                                                    
and would not be included in the presentation.                                                                                  
                                                                                                                                
Representative  Wool asked  why Ms.  Fowler's name  appeared                                                                    
twice  on the  organizational  chart. He  asked  if she  was                                                                    
moving into the deputy commissioner position.                                                                                   
                                                                                                                                
Ms.  Fowler replied  that the  deputy commissioner  position                                                                    
became vacant  in July of 2021,  and she had been  in acting                                                                    
status for  the position.  She was still  the administrative                                                                    
services director.                                                                                                              
                                                                                                                                
1:38:58 PM                                                                                                                    
                                                                                                                                
Ms.  Fowler  briefly reviewed  the  FY  23 governor  amended                                                                    
budget on slide  4. She relayed that the  department's FY 23                                                                    
budget looked  substantially similar  to the  previous year.                                                                    
The most  dramatic difference  was the  significant increase                                                                    
in  federal  authority in  the  last  couple of  years.  She                                                                    
highlighted that  DCCED had been the  passthrough agency for                                                                    
considerable  funds including  Coronavirus Aid,  Relief, and                                                                    
Economic Security  (CARES) Act and American  Rescue Plan Act                                                                    
(ARPA) funds  to local governments. The  department had also                                                                    
established several  grant programs  that were  provided for                                                                    
by the  legislature through the appropriations  process. She                                                                    
noted the  presentation included a slide  to provide updates                                                                    
on some of the items.                                                                                                           
                                                                                                                                
Ms. Fowler  addressed a  DCCED budget  lookback on  slide 5.                                                                    
She drew attention  to a small increase  in the department's                                                                    
FY  20 management  plan budget  in designated  general funds                                                                    
(DGF) where  the Alaska Oil and  Gas Conservation Commission                                                                    
(AOGCC)   was    transferred   from   the    Department   of                                                                    
Administration (DOA). She  highlighted substantial decreases                                                                    
in   the  department's   undesignated  general   fund  (UGF)                                                                    
allocation over the  years. In FY 15 the  department had $40                                                                    
million in  UGF and was  down to slightly under  $10 million                                                                    
in FY  23. Some of the  difference was due to  the reduction                                                                    
in  staff and  activity.  Additionally,  the department  had                                                                    
previously housed  a tourism program,  which had  been moved                                                                    
to  a   grant  operated   by  the  Alaska   Travel  Industry                                                                    
Association (ATIA).                                                                                                             
                                                                                                                                
1:41:07 PM                                                                                                                    
                                                                                                                                
Ms.  Fowler   turned  to   slide  6   and  noted   that  the                                                                    
department's  new Commissioner  Julie Sande  had started  on                                                                    
the first  day of session.  She discussed changes in  the FY                                                                    
23 budget  for the commissioner's office.  The one remaining                                                                    
position  from   the  economic  development   component  was                                                                    
transferred  into the  commissioner's  office. She  detailed                                                                    
that  the  previous year,  the  budget  had transferred  two                                                                    
positions  from economic  development to  the Office  of the                                                                    
Governor as the governor's office  was taking on more of the                                                                    
state's economic development  activities. The administration                                                                    
also  recognized  there  was   value  in  the  advocacy  for                                                                    
economic development  coming out  of the  governor's office.                                                                    
She explained  that the  change the  previous year  had left                                                                    
one  remaining  position in  the  component.  She noted  the                                                                    
position had  been naturally absorbed by  the commissioner's                                                                    
office in order  to have direction from  the commissioner on                                                                    
economic  activities  and  to  assist  where  the  need  was                                                                    
greatest.  She elaborated  that economic  development worked                                                                    
closely with the  Office of the Governor. The  change in the                                                                    
budget completed  the transition by moving  the position and                                                                    
associated funding  to the commissioner's  office component.                                                                    
She noted there was technically  a decrement in the economic                                                                    
development  component.  There  was  not  a  separate  slide                                                                    
included in  the presentation because the  change eliminated                                                                    
the need for a separate economic development component.                                                                         
                                                                                                                                
1:43:22 PM                                                                                                                    
                                                                                                                                
Ms.  Fowler  stated that  divisions  addressed  on slides  7                                                                    
through 9 did not have any  changes in the FY 23 budget. The                                                                    
only exception was the  unallocated rate adjustment included                                                                    
on slide 7  reflected the Office of  Management and Budget's                                                                    
(OMB) new  process of  allocating rates  across departments.                                                                    
The  item would  be included  in every  department's budget.                                                                    
She turned  to slide 8 and  noted there were not  changes in                                                                    
the  budgets for  the  AOGCC or  the  Alcohol and  Marijuana                                                                    
Control  Office  (AMCO).  The majority  of  agencies  within                                                                    
DCCED  were funded  through fees,  taxes,  or other  non-UGF                                                                    
fund sources.  She highlighted  flat budgets  for FY  23 for                                                                    
the  Alaska Gasline  Development Corporation  (AGDC), Alaska                                                                    
Industrial  Development and  Export  Authority (AIDEA),  and                                                                    
the Regulatory Commission of Alaska (RCA).                                                                                      
                                                                                                                                
Ms. Fowler moved  to slide 10 and addressed  the Division of                                                                    
Community  and  Regional  Affairs.  She  detailed  that  the                                                                    
division   had   received   numerous   multiyear   programs,                                                                    
especially related  to COVID-19 relief for  small businesses                                                                    
in the  last several years.  She relayed that  the increased                                                                    
volume in grants  had required an increase  in grant support                                                                    
for the  division. The department had  funding available for                                                                    
a grants  administrator 2 position; therefore,  there was no                                                                    
increase  in funding  or authority  necessary. The  position                                                                    
would be added to support ongoing grant activities.                                                                             
                                                                                                                                
Ms. Fowler pointed out that the  reversal of the FY 22 grant                                                                    
to Alaska Legal Services from  the Civil Legal Services Fund                                                                    
appeared   in   the   department's  budget   annually.   She                                                                    
elaborated it included backing out  the calculation from the                                                                    
past  year and  replacing  it with  a  calculation from  the                                                                    
Civil  Legal Services  Fund  for  the immediately  preceding                                                                    
fiscal  year. The  third operating  budget  change shown  on                                                                    
slide  10 was  a grant  from the  Civil Legal  Services Fund                                                                    
with  a portion  of court  filing fees.  Additionally, there                                                                    
was a  $400,000 grant to  Alaska Legal Services  funded with                                                                    
UGF. She  noted that because  the item had been  included in                                                                    
the budget  the previous year  it was not included  on slide                                                                    
10.                                                                                                                             
                                                                                                                                
1:46:30 PM                                                                                                                    
                                                                                                                                
Ms. Fowler turned to slide  11 pertaining to the Division of                                                                    
Corporations,  Business and  Professional Licensing  (CBPL).                                                                    
She   relayed  that   the  department   had  been   spending                                                                    
significantly more  time speaking  about CBPL  recently. She                                                                    
highlighted some  of the struggles  the division had  in the                                                                    
past  1.5 years  related  to the  pandemic and  professional                                                                    
licensing. She reported the division  had a 50 percent staff                                                                    
turnover  in the  past year  and its  professional licensing                                                                    
vacancy  rate had  been up  to  32 percent.  The absence  of                                                                    
experienced licensing  examiners and  nationwide recruitment                                                                    
challenges had been felt acutely in Alaska.                                                                                     
                                                                                                                                
Ms. Fowler understood that many  committee members had heard                                                                    
frustration  and concern  directly  from constituents  about                                                                    
the  need to  get licensed  in order  for people  to get  to                                                                    
work. The department was working  to address the issues with                                                                    
continuous    recruitment   in    Anchorage   and    Juneau.                                                                    
Additionally,  DCCED  had been  streamlining  communications                                                                    
through a  communications intake center to  ensure licensing                                                                    
examiners could devote their time  to processing and issuing                                                                    
license applications. The department  continued to work hard                                                                    
to identify other ways to  improve the situation. She stated                                                                    
there was  no option off  the table  when it came  to better                                                                    
serving the  public and ensuring  staff felt  supported. She                                                                    
asked legislators  to let  the department  know if  they had                                                                    
any suggestions.                                                                                                                
                                                                                                                                
1:48:48 PM                                                                                                                    
                                                                                                                                
Ms.  Fowler  continued  to  discuss CBPL  on  slide  12  and                                                                    
reported  there  were  numerous changes  in  the  division's                                                                    
operating budget.  The first change was  revenue replacement                                                                    
for professional  licensing fees in  order to hold  the fees                                                                    
stable  throughout  FY  23. The  change  assisted  with  the                                                                    
economic  recovery from  COVID-19  and recognized  financial                                                                    
struggles  felt  by  the private  sector.  Additionally,  it                                                                    
provided the  department with an  opportunity to  assess the                                                                    
fee  setting process  and determine  what could  be improved                                                                    
and how  to stabilize fees  for licensees. She  relayed that                                                                    
professional  fee setting  changed  based on  the costs  for                                                                    
each  professional  licensing  program. The  department  did                                                                    
everything it could to avoid  large increases, but sometimes                                                                    
they   occurred   when   a  program   had   an   exceptional                                                                    
investigative  cost. For  example,  for a  program like  the                                                                    
Direct  Entry  Midwives  with relatively  few  licensees,  a                                                                    
high-cost investigation resulted  in dramatic cost increases                                                                    
for licensees.                                                                                                                  
                                                                                                                                
Representative Rasmussen  asked about the  qualifications of                                                                    
the executive administrator for  the real estate commission.                                                                    
She  looked  at  a  line  item  request  for  the  certified                                                                    
appraisers.  She wondered  how the  person was  competent in                                                                    
the  "appraisal world"  because the  real estate  commission                                                                    
and board of appraisers were very different.                                                                                    
                                                                                                                                
Ms. Fowler  agreed the real  estate appraisers and  the real                                                                    
estate  commission were  very different.  The intent  was to                                                                    
have some increase in training  and oversight on the complex                                                                    
federal  regulations   that  sometimes  crossed   over.  She                                                                    
explained the change  was intended to rectify  the fact that                                                                    
the  two programs  had been  staffed by  one person  with no                                                                    
coverage or  cross training in  the event of a  vacancy. She                                                                    
explained there  was a pretty  dramatic impact  to licensees                                                                    
if a vacancy occurred because  the programs were not simple,                                                                    
and it was not possible "to  pull somebody off of the street                                                                    
and have them instantly  understand these licensing programs                                                                    
and be able  to be an effective  administrator." She offered                                                                    
to follow up with the position description.                                                                                     
                                                                                                                                
Representative   Rasmussen  agreed   it  was   an  important                                                                    
position. She knew  that if the state  lost compliance after                                                                    
a certain  period of  time, specifically  with the  board of                                                                    
appraisers, it  could risk the state's  federal funding from                                                                    
the   Federal   Housing   Authority   (FHA)   and   Veterans                                                                    
Administration (VA).  She was not  sure that  the commission                                                                    
and  board would  be best  served with  one person.  She was                                                                    
interested in having more  conversations with the department                                                                    
to discuss  how to best  serve the  people. She had  heard a                                                                    
general theme  from many different  types of  licensees that                                                                    
the amount  of time it  took for license applications  to be                                                                    
approved was a  barrier. She believed the  process needed to                                                                    
be expedited due  to the shortage of  workers. She suggested                                                                    
the  idea of  a temporary  license  followed up  by a  board                                                                    
review.  She  would  appreciate more  clarification  on  the                                                                    
position.                                                                                                                       
                                                                                                                                
1:53:45 PM                                                                                                                    
                                                                                                                                
Representative  Wool   stated  the  number   of  professions                                                                    
requiring  licensing  kept  increasing  nationally.  He  had                                                                    
heard  from some  people  who thought  there  were too  many                                                                    
license   requirements.   He    recalled   a   barbers   and                                                                    
hairdressers  license required  for  a  hair procedure  that                                                                    
some  had "chuckled  at." He  asked if  new professions  had                                                                    
been added  to the list. He  asked if the department  had to                                                                    
just license who it was told by the legislature.                                                                                
                                                                                                                                
Ms. Fowler answered there were  22 programs licensed through                                                                    
CBPL and  21 boards.  She elaborated  that the  programs and                                                                    
boards  may  oversee  a  multitude  of  license  types.  She                                                                    
confirmed  they  were  established  by  the  legislature  in                                                                    
statute.                                                                                                                        
                                                                                                                                
Representative   Wool   referenced    licensing   fees   and                                                                    
investigation fees  and Ms. Fowler's  example of  the Direct                                                                    
Entry   Midwives   that   had   few   licensees   and   high                                                                    
investigative costs resulting in a  high license fee. He had                                                                    
heard  of  a  similar   type  of  burden  for  veterinarians                                                                    
especially related  to violations  of the  Prescription Drug                                                                    
Monitoring Program (PDMP).  He asked if CBPL  would ever put                                                                    
forth the  concept of bringing all  investigative fees under                                                                    
one cost and  dividing it so that one board  did not get hit                                                                    
with high costs due to low membership.                                                                                          
                                                                                                                                
1:56:59 PM                                                                                                                    
                                                                                                                                
Ms. Fowler  answered that the discussions  had been ongoing.                                                                    
Prior legislators  had considered  bills to make  the change                                                                    
mentioned  by Representative  Wool,  but the  bills had  not                                                                    
passed  the legislature  to date.  She explained  there were                                                                    
many dynamics  that occurred when  all of the  license types                                                                    
were  pooled  together. There  were  winners  and losers  to                                                                    
every proposal  in terms of allocating  investigative costs.                                                                    
She   stated   there   had   been   dynamic   and   engaging                                                                    
conversations on the  topic that had taken place  on and off                                                                    
the record. The  department was always willing  to engage in                                                                    
the  conversations. The  department had  shared some  of its                                                                    
fee setting tools  with LFD in the past in  order for LFD to                                                                    
run different scenarios showing the impact.                                                                                     
                                                                                                                                
Representative LeBon  asked how  important the  $1.5 million                                                                    
in  revenue replacement  was  to  the division's  day-to-day                                                                    
operations related to licensing  activities. He asked if the                                                                    
funds would  merely make the department  more comfortable or                                                                    
if they were fairly important for the agency's activities.                                                                      
                                                                                                                                
Ms. Fowler  turned to  slide 13 and  answered that  the $1.5                                                                    
million  had  been  included   in  the  governor's  original                                                                    
request.  The   amount  was  reduced  by   $400,000  in  the                                                                    
governor's  amended   budget  because  the   department  had                                                                    
completed the fee assessment. She  explained the purpose was                                                                    
not to  provide additional  resources to the  department for                                                                    
processing applications more quickly.  She detailed that the                                                                    
department was very focused  on recruitment and streamlining                                                                    
efforts,  in  addition  to  what  the  department  could  do                                                                    
administratively  to speed  up some  of  the processes.  The                                                                    
$1.1  million  in  the  FY  23 budget  would  stop  any  fee                                                                    
increases on  individual licensees in FY  23. She elaborated                                                                    
that  the funds  would  give DCCED  the  opportunity to  not                                                                    
increase fees while  evaluating what it could  do better and                                                                    
what  tools  were needed  to  better  serve the  public  and                                                                    
provide licenses more quickly.                                                                                                  
                                                                                                                                
Representative  LeBon  stated  his  understanding  that  the                                                                    
funding would help  the department carry out  its mission of                                                                    
renewing  and providing  licensing as  quickly as  possible,                                                                    
while  also   offering  relief  to  Alaska   businesses  and                                                                    
individuals.                                                                                                                    
                                                                                                                                
Ms. Fowler agreed.                                                                                                              
                                                                                                                                
Representative  Josephson looked  at slide  12 and  asked if                                                                    
the  $1.1   million  in  revenue  replacement   funding  was                                                                    
intended  to  go  through  the   governor's  budget  or  the                                                                    
governor's office.                                                                                                              
                                                                                                                                
2:01:08 PM                                                                                                                    
                                                                                                                                
Ms. Fowler  clarified that the  funds would go  through CBPL                                                                    
within the DCCED budget, not the governor's office.                                                                             
                                                                                                                                
Ms. Fowler turned  to insurance operations on  slide 14. She                                                                    
detailed that the Division of  Insurance was responsible for                                                                    
licensing and compliance of  insurers and insurance products                                                                    
in Alaska.  The division had  lapsed $88.6 million in  FY 21                                                                    
through its  fees and insurance premium  taxes. She reported                                                                    
the division's operating costs at  $8.9 million. She relayed                                                                    
the  division was  a strong  generator of  UGF funding.  The                                                                    
department  was  requesting $1  million  in  authority as  a                                                                    
multiyear   increment  in   the  supplemental   budget.  She                                                                    
explained  the division  had two  actuarial  positions at  a                                                                    
range  25 with  a  starting salary  of  about $103,000.  She                                                                    
elaborated  the division  had  consistently had  recruitment                                                                    
challenges in filling the positions.                                                                                            
                                                                                                                                
Ms. Fowler expounded that the  actuaries within the division                                                                    
reviewed the  filings received from insurance  companies for                                                                    
all  types  of  insurance.  The positions  were  crucial  to                                                                    
ensuring   the  state   was  appropriately   regulating  the                                                                    
insurance   industry.  She   explained   that  because   the                                                                    
positions  had  been vacant,  the  division  had been  using                                                                    
contractual  actuarial   services,  which  were   much  more                                                                    
expensive than performing the  work in-house. The department                                                                    
was exploring  what options existed  to have better  luck in                                                                    
filling the positions, including  evaluating the pay and how                                                                    
additional  flexibility could  be added  for the  positions.                                                                    
The  department  was   requesting  additional  authority  to                                                                    
complete  the needed  actuarial work.  She pointed  out that                                                                    
the 1332 waiver  would be up for review  the following year.                                                                    
She  informed  the  committee   the  actuarial  support  was                                                                    
particularly  important  to   ensure  the  department  could                                                                    
evaluate the best path forward regarding the 1332 waiver.                                                                       
                                                                                                                                
Representative  Johnson asked  about  the actuarial  support                                                                    
position. She asked for verification  it would be a contract                                                                    
with an outside firm.                                                                                                           
                                                                                                                                
Ms. Fowler replied affirmatively.                                                                                               
                                                                                                                                
Representative  Johnson asked  if  the  state had  contracts                                                                    
with other  actuarial firms. She thought  the actuarial work                                                                    
could be consolidated.                                                                                                          
                                                                                                                                
2:05:23 PM                                                                                                                    
                                                                                                                                
Ms. Fowler  clarified that the Division  of Insurance always                                                                    
had  some contracted  actuarial support  in addition  to the                                                                    
two positions.  To her knowledge,  the Department  of Health                                                                    
and Social Services  (DHSS) and DOA both  had contracts with                                                                    
actuarial firms. She did not  know whether the Department of                                                                    
Revenue had actuarial contracts.                                                                                                
                                                                                                                                
Representative  Johnson  asked  if  the  budget  funded  two                                                                    
vacant [actuarial]  positions in addition to  $1 million for                                                                    
an outside contract.                                                                                                            
                                                                                                                                
Ms.  Fowler agreed.  She detailed  that  when the  positions                                                                    
were  filled, the  department  hoped to  reduce  the use  of                                                                    
contracted  actuarial services.  She clarified  that all  of                                                                    
the funds  were generated through the  Division of Insurance                                                                    
and would lapse to UGF if they were not utilized.                                                                               
                                                                                                                                
Ms.  Fowler  continued to  discuss  budget  changes for  the                                                                    
Division  of  Insurance  on slide  14.  The  department  was                                                                    
deleting a secretary position that  had been vacant for over                                                                    
a year. The job duties  had been absorbed by other positions                                                                    
where  they  were  more appropriately  located  or  were  no                                                                    
longer    necessary    due   to    information    technology                                                                    
improvements.  Additionally, DCCED  was  moving toward  more                                                                    
professional   class   employees    with   fewer   secretary                                                                    
positions. She  noted the federal  receipt language  for the                                                                    
Reinsurance Program was included in the budget annually.                                                                        
                                                                                                                                
Ms.  Fowler  discussed  the Alaska  Energy  Authority  (AEA)                                                                    
budget on  slide 15.  She highlighted  that the  reversal of                                                                    
the Power  Cost Equalization  (PCE) funding and  language to                                                                    
add  PCE payments  back  in showed  up  in the  department's                                                                    
budget  on  an annual  basis.  She  explained there  was  no                                                                    
change  to the  way PCE  was funded  or how  the funds  were                                                                    
being used. The funding waterfall  was followed in the FY 23                                                                    
budget. She clarified there was a net zero change to PCE.                                                                       
                                                                                                                                
2:08:18 PM                                                                                                                    
                                                                                                                                
Ms. Fowler turned to the  Alaska Seafood Marketing Institute                                                                    
(ASMI)  change  on slide  16.  The  ASMI budget  included  a                                                                    
request to extend  $7 million in trade  promotion funding in                                                                    
alignment  with federal  funding  timelines.  She noted  the                                                                    
increment had been included as  an FY 22 appropriation only.                                                                    
She  clarified  there  was  no   request  for  an  increased                                                                    
appropriation.                                                                                                                  
                                                                                                                                
Representative LeBon  stated that  a couple of  days earlier                                                                    
the  committee had  talked a  bit about  the $90  million in                                                                    
grants  to tourism  and other  businesses to  offset revenue                                                                    
loss. He  asked for a  status update on the  disbursement of                                                                    
the funding and how much funding remained.                                                                                      
                                                                                                                                
Ms.  Fowler  turned  to  slide   17  showing  ARPA  projects                                                                    
allocated  to  DCCED. She  explained  that  the Tourism  and                                                                    
Other  Business program  had  been operated  as  a net  loss                                                                    
program  with all  other sources  of relief  funding deleted                                                                    
from an  application. She  detailed that  about half  of the                                                                    
funding  had   been  allocated   in  grants   to  businesses                                                                    
throughout Alaska  in round  one. The  department understood                                                                    
the need was  greater than $90 million, but  the program had                                                                    
been  restricted in  a  way that  prevented  the funds  from                                                                    
being fully allocated. The department  was working hard on a                                                                    
round two program  and would announce the  program dates the                                                                    
following  day.  Similar to  the  round  one program,  there                                                                    
would be a  30-day application window. She  clarified it was                                                                    
not a first come, first  served program. She shared that the                                                                    
previous  week,  Commissioner  Sande had  announced  at  the                                                                    
Southeast  Conference that  the round  two program  would be                                                                    
based on  gross revenues rather  than net revenues  in order                                                                    
to  diminish  some of  the  impact  of different  accounting                                                                    
practices on a  business's ability to qualify.  The goal was                                                                    
to provide  an easier  method for businesses  to demonstrate                                                                    
the impact of COVID-19 and their losses.                                                                                        
                                                                                                                                
Representative Josephson looked at  slide 17 and asked about                                                                    
grants to  local governments with significant  revenue loss.                                                                    
He stated  it had been  a major  focus by the  House Finance                                                                    
Committee the previous year. He  thought people in Southeast                                                                    
and the Denali Borough were  desperate for revenue. He asked                                                                    
why none of the funds had been expended.                                                                                        
                                                                                                                                
Ms.  Fowler answered  that the  application  period for  the                                                                    
local  government program  had  been in  November 2021.  She                                                                    
explained that  the funds  had been  fully allocated  and if                                                                    
she had  pulled the data  one week  later it would  not show                                                                    
that  none of  the spending  had been  obligated. She  would                                                                    
provide  the committee  with a  list of  the 44  communities                                                                    
that had  applied for and  qualified for the  grant funding.                                                                    
She  clarified  that  the  grant   funding  had  been  fully                                                                    
allocated  but did  not  yet  show up  as  obligated on  the                                                                    
slide.                                                                                                                          
                                                                                                                                
2:13:11 PM                                                                                                                    
                                                                                                                                
Ms.  Fowler  highlighted  that the  application  period  for                                                                    
round two of the grants  to nonprofits program had closed on                                                                    
February  17.  The review  process  was  underway and  DCCED                                                                    
anticipated making  final awards  by the  end of  March. The                                                                    
department was  currently soliciting applications  for round                                                                    
two of the  grants to electric utilities  program. She noted                                                                    
that DCCED  had not  received as  many applications  for the                                                                    
program as it had anticipated.                                                                                                  
                                                                                                                                
Representative Rasmussen asked for  a list of the nonprofits                                                                    
and  local  governments.  She stated  it  would  be  helpful                                                                    
during the  committee's budget deliberation process  to know                                                                    
where the extra assistance was coming from the department.                                                                      
                                                                                                                                
Ms. Fowler replied that she would provide the information.                                                                      
                                                                                                                                
Representative Josephson  looked at  the last line  on slide                                                                    
17. He observed  that most of the funds  were restricted. He                                                                    
asked if  it was because they  were an RPL or  direct grants                                                                    
from the governor.                                                                                                              
                                                                                                                                
2:14:59 PM                                                                                                                    
                                                                                                                                
Ms.  Fowler answered  that when  the legislature  had passed                                                                    
the  budget,  DCCED  did  not know  what  funding  would  go                                                                    
directly from  the federal government to  different types of                                                                    
local governments. She explained  that a considerable amount                                                                    
of  the funding  ended up  going directly  from the  federal                                                                    
government   to   communities   rather  than   through   the                                                                    
department;  therefore,  the department  restricted  funding                                                                    
the communities received not through the state's process.                                                                       
                                                                                                                                
Co-Chair Foster thanked Ms. Fowler for the presentation.                                                                        
                                                                                                                                
2:15:52 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:16:44 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
^OVERVIEW: DEPARTMENT OF MILITARY and VETERANS AFFAIRS                                                                        
                                                                                                                                
2:17:19 PM                                                                                                                    
                                                                                                                                
CRAIG  CHRISTENSON,   DEPUTY  COMMISSIONER,   DEPARTMENT  OF                                                                    
MILITARY  AND   VETERANS  AFFAIRS,  provided   a  PowerPoint                                                                    
presentation  titled  "FY2023  Operating  Budget  Overview,"                                                                    
dated February  24, 2022  (copy on file).  He began  with an                                                                    
organizational  chart  on  slide   3.  He  highlighted  that                                                                    
Commissioner Torrence Saxe was  also the adjutant general of                                                                    
the National Guard.  He directed attention to  the left side                                                                    
of the organizational  chart outlined in a  dotted black box                                                                    
showing  the  organized  militia.   He  explained  that  the                                                                    
adjutant  general operated  as the  commander of  the Alaska                                                                    
organized   militia.  Commissioner   Saxe's   roll  as   the                                                                    
commissioner  of the  Department  of  Military and  Veterans                                                                    
Affairs  (DMVA)  applied  to  the other  boxes  on  slide  3                                                                    
outside of the dotted black box.                                                                                                
                                                                                                                                
Mr.  Christenson continued  to  review slide  3. The  Alaska                                                                    
Aerospace Corporation fell  administratively under DMVA, but                                                                    
not  operationally. He  clarified that  the corporation  did                                                                    
not take  any general funds  and was funded  entirely within                                                                    
its   organization.  Other   areas  within   the  department                                                                    
included  Alaska   Public  Safety   Communication  Services,                                                                    
Veterans   Affairs,    Alaska   Military    Youth   Academy,                                                                    
Administrative   Services,   and   Homeland   Security   and                                                                    
Emergency  Management.   He  pointed  out  that   Air  Guard                                                                    
Facilities  Maintenance   and  the  Army   Guard  Facilities                                                                    
Maintenance were  state employees  in a state  division with                                                                    
the sole  purpose of  supporting the  Army and  Air National                                                                    
Guard. The  employees provided maintenance  and construction                                                                    
of new facilities and other  related work. He explained that                                                                    
although the Air and Army  National Guard were not utilizing                                                                    
general funds, the  guard had contracted with  the state for                                                                    
facilities  maintenance.  He  relayed that  several  of  the                                                                    
proposals his colleague would review  referenced back to the                                                                    
topic.                                                                                                                          
                                                                                                                                
2:19:46 PM                                                                                                                    
                                                                                                                                
BOB  ERNISSE, ADMINISTRATIVE  SERVICES DIRECTOR,  DEPARTMENT                                                                    
OF MILITARY  AND VETERANS AFFAIRS, OFFICE  OF MANAGEMENT AND                                                                    
BUDGET, OFFICE OF THE GOVERNOR,  addressed slide 4 showing a                                                                    
high level  budget comparison between  the FY  19 authorized                                                                    
and FY  23 governor's request. He  reported the department's                                                                    
overall UGF budget had remained  flat or decreased, with one                                                                    
notable exception. He highlighted  the UGF increase from the                                                                    
addition of the  Alaska Land Mobile Radio  System (ALMR) and                                                                    
the   State  of   Alaska  Telecommunication   System  (SATS)                                                                    
transferred to  DMVA from  the Department  of Administration                                                                    
(DOA)  in  FY  21.   The  department's  budget  returned  to                                                                    
historical  levels in  FY  23  due to  the  transfer of  the                                                                    
Alaska  Public  Safety   Communications  Services  (formerly                                                                    
known as  ALMR and  SATS) back to  the Department  of Public                                                                    
Safety (DPS). He would review the topic in further detail.                                                                      
                                                                                                                                
Mr. Ernisse  moved to  slide 5  showing an  operating budget                                                                    
change  summary  pertaining  to  the  Alaska  Public  Safety                                                                    
Communications  Services (APSCS).  The administration  found                                                                    
the  system  better aligned  with  DPS's  mission to  ensure                                                                    
public safety. He relayed that  APSCS was already collocated                                                                    
within DPS.  The transfer was  a net zero budget  impact. He                                                                    
added that 24 positions would be transferred to DPS.                                                                            
                                                                                                                                
2:21:21 PM                                                                                                                    
                                                                                                                                
Mr. Ernisse turned to slide  6 and discussed the proposal to                                                                    
provide funding  for the Alaska State  Defense Force (ASDF).                                                                    
He  stated that  the funding  would help  increase community                                                                    
emergency capacity  and resiliency, while helping  to engage                                                                    
remote  communities  utilizing   the  volunteer  force.  The                                                                    
department  was  requesting   one  full-time  administrative                                                                    
assistant II  position to  help manage  the ASDF  budget and                                                                    
would assist in  state active duty activations  for ASDF and                                                                    
the National Guard.                                                                                                             
                                                                                                                                
Co-Chair  Foster  asked  if the  proposed  position  was  in                                                                    
Bethel. He recalled  there had been a proposal  to put "some                                                                    
folks" in Bethel  several years earlier. He asked  if it was                                                                    
the same thing.                                                                                                                 
                                                                                                                                
Mr. Ernisse answered that a  proposal several years back had                                                                    
put some  non-permanent positions  in a couple  of different                                                                    
locations  around  the  state.   The  current  proposal  was                                                                    
similar in  its request for  funding for ASDF;  however, the                                                                    
non-permanent  positions  had  been aimed  at  helping  with                                                                    
recruitment  in those  areas, whereas  the current  proposal                                                                    
was for administrative work associated with the funding.                                                                        
                                                                                                                                
Mr.  Ernisse  turned  to  slide 7  showing  a  reduction  of                                                                    
$36,000  in general  funds  from  the commissioner's  office                                                                    
budget.   The  reductions   were   in  nonmandatory   travel                                                                    
associated with  meetings. The  department had  learned over                                                                    
the past  several years that  every meeting did not  need to                                                                    
be held  in person. The commissioner's  office would utilize                                                                    
Microsoft Teams or Zoom for those meetings in the future.                                                                       
                                                                                                                                
Mr. Ernisse  moved to slide  8 and explained  the department                                                                    
was requesting a funding swap  of $176,000 general funds for                                                                    
$176,000  in federal  receipts  associated  with the  Alaska                                                                    
Military Youth Academy (AMYA). He  detailed that through the                                                                    
Master Cooperative  Agreement with  the National  Guard, the                                                                    
department  had  found it  was  able  to request  additional                                                                    
reimbursement   for  utility   costs.  The   department  was                                                                    
requesting to pay split the  costs between federal authority                                                                    
and general  funds at 75/25 respectively  (instead of paying                                                                    
for the costs with general funds only).                                                                                         
                                                                                                                                
2:23:51 PM                                                                                                                    
                                                                                                                                
Representative  LeBon believed  the program  was located  at                                                                    
Joint  Base Elmendorf-Richardson  (JBER).  He  asked if  the                                                                    
shared funding opportunity was long-term.                                                                                       
                                                                                                                                
Mr. Ernisse confirmed it would be a long-term funding swap.                                                                     
                                                                                                                                
Mr.  Ernisse moved  to slide  9  and discussed  the swap  of                                                                    
$263,000  in  general  funds  for  $263,000  in  interagency                                                                    
receipts  associated  with  AMYA.  He  explained  that  DMVA                                                                    
received a  United States  Department of  Agriculture (USDA)                                                                    
grant  through   the  Department  of  Education   and  Early                                                                    
Development  (DEED) for  reimbursement  of costs  associated                                                                    
with the  dining staff operations. The  proposal would align                                                                    
personal  services expenditures  with the  amount billed  to                                                                    
DEED for the grant.                                                                                                             
                                                                                                                                
2:25:10 PM                                                                                                                    
                                                                                                                                
Mr. Ernisse turned to a  request for additional authority to                                                                    
cover  the  new United  States  Property  and Fiscal  Office                                                                    
(USPFO) building  on JBER (on  slide 10). He  explained that                                                                    
all  costs associated  with the  building  were 100  percent                                                                    
federally  reimbursed.  The  additional authority  would  be                                                                    
used  to  cover operations  and  maintenance  costs such  as                                                                    
utilities,  snowplows, lawn  care,  work  orders, and  other                                                                    
related items.                                                                                                                  
                                                                                                                                
Mr.  Ernisse addressed  a request  for  $500,000 in  federal                                                                    
authority to fulfill  furniture requirements associated with                                                                    
building maintenance  and lifecycle  requirements throughout                                                                    
Army National  Guard buildings (on  slide 11).  He explained                                                                    
that  the   state  procurement   process  provided   a  more                                                                    
economical way  to provide furniture for  the buildings. The                                                                    
request  was 100  percent federally  funded. He  highlighted                                                                    
that  the  $500,000 represented  roughly  5  percent of  the                                                                    
National Guard's furniture inventory.                                                                                           
                                                                                                                                
Mr.  Ernisse   discussed  the  request  for   a  maintenance                                                                    
generalist   position  within   the   Army  Guard   Facility                                                                    
Maintenance  component  on  slide  12.  The  position  would                                                                    
provide maintenance  repairs and  new installations  at DMVA                                                                    
facilities  located on  JBER and  was 100  percent federally                                                                    
funded. For  example, the position  would work  on buildings                                                                    
like the new USPFO discussed on a previous slide.                                                                               
                                                                                                                                
Mr.  Ernisse  advanced  to  a  request on  slide  13  for  a                                                                    
building  maintenance  specialist   within  the  Army  Guard                                                                    
Facilities Maintenance.  The position would  oversee project                                                                    
management    including    oversight    and    construction,                                                                    
maintenance,   repairs,    modifications,   and   demolition                                                                    
projects for  state and federally supported  facilities. The                                                                    
position  would be  100 percent  federally funded.  Slide 14                                                                    
included   a   request   for   two   environmental   program                                                                    
specialists  due  to a  new  need  to manage  various  water                                                                    
resource programs.  The positions would also  be responsible                                                                    
for  environmental  training  plans and  the  management  of                                                                    
initial, interim,  and long-term  spills of  hazardous waste                                                                    
[by the Alaska Army National Guard or their facilities].                                                                        
                                                                                                                                
Mr. Ernisse highlighted  a request for a  planner 3 position                                                                    
within the  Army Guard  Facilities Maintenance  component on                                                                    
slide  15. The  position was  needed for  the management  of                                                                    
facilities within  the facilities maintenance  component and                                                                    
would help  alleviate some of  the supervisory  needs within                                                                    
the division.                                                                                                                   
                                                                                                                                
2:27:58 PM                                                                                                                    
                                                                                                                                
Mr. Ernisse reviewed  a request of $21,600  general funds on                                                                    
slide 16. The  request would allow the  Division of Homeland                                                                    
Security and Emergency Management  to deploy operational and                                                                    
response staff to a potential  disaster incident in order to                                                                    
assess the situation.  He noted that if the  event was later                                                                    
declared a  state or federal  disaster, the  travel expenses                                                                    
would  be reimbursed,  and the  funding would  not be  used.                                                                    
Slide 17 showed a  technical change decreasing unused excess                                                                    
authority in the Alaska  Aerospace Corporation budget. Slide                                                                    
18 was  a technical  change decreasing excess  authority for                                                                    
the  Alaska Aerospace  Corporation's Facilities  Maintenance                                                                    
Office.                                                                                                                         
                                                                                                                                
Co-Chair  Foster stated  that  some of  his communities  had                                                                    
been interested in some of  the old national guard buildings                                                                    
that were no longer in use  or were utilized for storage. He                                                                    
thought it  sounded like  a combination  of needing  to work                                                                    
with the  federal government and  the state  office handling                                                                    
public  facilities. He  wondered if  the department  had any                                                                    
comments  or  thoughts  on the  topic.  He  elaborated  that                                                                    
sometimes  communities   wanted  to  be  able   to  use  the                                                                    
facilities for youth activities or as a community building.                                                                     
                                                                                                                                
Mr.  Christensen answered  that  the  divesture program  for                                                                    
armories  had  been  ongoing  for  a  number  of  years.  He                                                                    
reported that 37  armories had been divested.  There were an                                                                    
additional 29 with real property  and 9 land only properties                                                                    
that were still  in the process of  divestment. He explained                                                                    
that each of the armories  could be very different depending                                                                    
on  if  the building  was  built,  funded,  and owned  by  a                                                                    
federal or state  source and if the building  was located on                                                                    
federal  or state  land. The  department had  a program  and                                                                    
employee  responsible  for   digging  into  each  individual                                                                    
armory. He relayed  that the goal in  the divestment process                                                                    
was  for the  buildings  to  go back  to  the community.  He                                                                    
elaborated that who  the building was offered to  and how it                                                                    
was offered differed based on  the specifics associated with                                                                    
the specific  building. The department  had spoken  with Co-                                                                    
Chair Foster's  staff recently on  the topic. He  offered to                                                                    
follow  up with  further  detail on  any specific  buildings                                                                    
committee members may be interested in.                                                                                         
                                                                                                                                
2:31:23 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster appreciated  the department's assistance. He                                                                    
thought  there  had  been good  progress  with  37  armories                                                                    
divested thus far. He looked at  the request on slide 14 for                                                                    
environmental  program  specialists   related  to  hazardous                                                                    
waste work.  He remarked that  St. Lawrence Island  had some                                                                    
concerns  about hazardous  waste,  which may  be  more of  a                                                                    
federal issue. He  asked if the positions  may be affiliated                                                                    
with the effort to do anything on the island.                                                                                   
                                                                                                                                
Mr. Christensen  responded that  the answer  was yes  if the                                                                    
St. Lawrence  Island environmental concerns  were associated                                                                    
with one  of the armories  the department was  divesting. He                                                                    
stated  that the  positions  or  existing similar  positions                                                                    
would  be engaged  in the  work.  He clarified  that if  the                                                                    
environmental issue was separate  from the National Guard or                                                                    
National  Guard  armory, it  would  not  be covered  by  the                                                                    
positions.                                                                                                                      
                                                                                                                                
Representative  Wool  asked  if  there  had  been  talk  the                                                                    
previous  year about  repurposing some  of the  armories for                                                                    
Space Force.                                                                                                                    
                                                                                                                                
Mr.  Christensen  replied  that  he did  not  recollect  the                                                                    
discussion  and  he  did  not believe  any  of  the  current                                                                    
buildings would be purposed for Space Force.                                                                                    
                                                                                                                                
Representative   Wool   asked   if  the   Alaska   Aerospace                                                                    
Corporation  components on  slides 17  and 18  were for  the                                                                    
rocket launch facility  in Kodiak. He asked  if the facility                                                                    
was under DMVA.                                                                                                                 
                                                                                                                                
Mr.  Christensen replied  affirmatively.  He explained  that                                                                    
the  Alaska  Aerospace   Corporation  administratively  fell                                                                    
under  DMVA.  He  clarified the  corporation  did  not  fall                                                                    
operationally  under   DMVA;  it   was  a   separate  quasi-                                                                    
corporation. The  entity did have  state employees,  but the                                                                    
corporation  reimbursed  the  state  for  the  funding.  The                                                                    
corporation  did  not  use  any   state  general  funds.  He                                                                    
elaborated  that the  launch complex  was located  on Kodiak                                                                    
and it  provided both commercial  and Department  of Defense                                                                    
launch services.                                                                                                                
                                                                                                                                
Representative   Wool   asked   if  the   Alaska   Aerospace                                                                    
Corporation  was housed  under DMVA  because of  the defense                                                                    
link with certain launches.                                                                                                     
                                                                                                                                
Mr. Christensen agreed.                                                                                                         
                                                                                                                                
Representative  LeBon thanked  the  department for  pursuing                                                                    
funding  partnerships with  federal agencies  like the  USDA                                                                    
and others to help its budget.                                                                                                  
                                                                                                                                
Co-Chair Foster thanked the presenters.                                                                                         
                                                                                                                                
2:35:44 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:37:47 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
^OVERVIEW: DEPARTMENT OF FISH and GAME                                                                                        
                                                                                                                                
2:38:26 PM                                                                                                                    
                                                                                                                                
DOUG  VINCENT-LANG,  COMMISSIONER,  DEPARTMENT OF  FISH  AND                                                                    
GAME,  provided  a  PowerPoint presentation  titled  "Alaska                                                                    
Department of Fish and Game:  FY2023 Budget Overview," dated                                                                    
February 24, 2022 (copy on file).  He began with a review of                                                                    
the past year on slide 2.  He relayed the Department of Fish                                                                    
and Game (DFG)  continued to provide a  return on investment                                                                    
of over  $11 billion on  a general fund investment  of about                                                                    
$70 million. He stated  that nearly all commercial fisheries                                                                    
were conducted, allowing commercial  fishermen to fish their                                                                    
permits  and thereby  make a  living and  contribute to  the                                                                    
state and  local economies through collected  fish taxes. He                                                                    
shared  that some  commercial fisheries  were closed  due to                                                                    
stock conservation  concerns, but none closed  due to COVID-                                                                    
19. He read the remaining bullet points on slide 2:                                                                             
                                                                                                                                
   • Sport and personal use  fisheries operated,  allowing                                                                    
     anglers an opportunity to fill their freezers, feed                                                                        
     their families, and get outside.                                                                                           
   • Subsistence fisheries and  hunts  occurred,  allowing                                                                    
     subsistence harvesters opportunities to feed their                                                                         
     communities and pass on traditions.                                                                                        
   • Hunts occurred  throughout  Alaska   giving  Alaskans                                                                    
     opportunities to hunt, fill their freezers and pass on                                                                     
     traditions.                                                                                                                
   • Charter fishing and guided hunting operated, providing                                                                   
     needed recreational opportunities and economic boosts                                                                      
     to the state and local economies.                                                                                          
   • Area offices remained open to serve the public.                                                                          
                                                                                                                                
Commissioner Vincent-Lang  provided a brief overview  of the                                                                    
department's FY 23 budget on slide 3:                                                                                           
                                                                                                                                
   • The Department will be able to continue to provide an                                                                    
     excellent return on investment as we have in the past                                                                      
     under the Governor's proposed budget.                                                                                      
   • The department does not anticipate  any reduction  in                                                                    
     services as a result of the proposed budget.                                                                               
   • The department was able  to  use alternative  funding                                                                    
     sources and cost efficiencies to reduce our General                                                                        
     Fund needs.                                                                                                                
   • The proposed budget  includes   $33  million  to  new                                                                    
     fisheries, wildlife, and resource projects.                                                                                
                                                                                                                                
Commissioner Vincent-Lang  turned to  a chart showing  a DFG                                                                    
operating budget comparison on  slide 4. He highlighted that                                                                    
the department's  budget had  crept up after  FY 21  and was                                                                    
about $20  million higher than in  FY 19. He noted  a bit of                                                                    
that  amount was  comprised  of  undesignated general  funds                                                                    
(UGF),  but DFG  had successfully  found federal  funding to                                                                    
increase  revenue  and  address  budget  shortfalls  or  UGF                                                                    
reductions.                                                                                                                     
                                                                                                                                
2:40:23 PM                                                                                                                    
                                                                                                                                
Commissioner Vincent-Lang  turned to  slide 5  and discussed                                                                    
DFG's  fund source  breakdown. The  department's budget  was                                                                    
primarily comprised  of federal  receipts and  "other" funds                                                                    
including the  Fish and  Game Fund,  Exxon Valdez  Oil Spill                                                                    
interagency  receipts,  capital  improvement  projects,  and                                                                    
statutory  designated   program  receipts.   The  department                                                                    
received slightly less  than 25 percent of  its funding from                                                                    
UGF and designated general funds (DGF).                                                                                         
                                                                                                                                
Commissioner Vincent-Lang  moved to FY 23  budget highlights                                                                    
on  slide  6.  The  department would  take  a  reduction  in                                                                    
Southeast  Alaska administrative  services. He  detailed the                                                                    
position  had been  funded to  deal  with publications.  The                                                                    
department  had  14  or   15  publications  specialists.  He                                                                    
explained the UGF portion of  the position would be reduced,                                                                    
but the  position would be maintained.  The department hoped                                                                    
to  find an  alternative fund  source hopefully  through the                                                                    
Pacific  Salmon  Treaty to  pay  for  the federal  reporting                                                                    
requirements. The  second item on  slide 6 was  the transfer                                                                    
of  authority  from  Sport   Fisheries  for  agency  mission                                                                    
alignment.  He  expounded  that the  Pacific  Salmon  Treaty                                                                    
currently funded  two major components including  a juvenile                                                                    
salmon  assessment  program   and  adult  salmon  assessment                                                                    
program. The department decided  to combine the two programs                                                                    
under  the  Division of  Commercial  Fisheries  in order  to                                                                    
optimize  the  use  of personnel  and  other  things  moving                                                                    
forward. By doing  so, the department was able to  put a new                                                                    
program through  the Pacific Salmon  Treaty in the  water on                                                                    
the  Alsek  River without  any  increase  in the  number  of                                                                    
people.                                                                                                                         
                                                                                                                                
Commissioner Vincent-Lang addressed  the third budget change                                                                    
under the Division  of Commercial Fisheries on  slide 6. The                                                                    
budget  proposed   the  reversal  of  a   one-time  $800,000                                                                    
increment of  UGF for Commercial Fisheries  Entry Commission                                                                    
(CFEC) receipts.  The last  item on slide  6 fell  under the                                                                    
Division  of Sport  Fish and  showed the  transfer authority                                                                    
from  Sport   Fisheries  to   the  Division   of  Commercial                                                                    
Fisheries for  agency mission alignment (the  reverse of the                                                                    
increment  previously discussed).  He  underscored that  the                                                                    
change would not  impact sport fishing. He  clarified it was                                                                    
a research  program and the  same information went  into all                                                                    
fisheries including sport, commercial, and subsistence.                                                                         
                                                                                                                                
2:42:49 PM                                                                                                                    
                                                                                                                                
Commissioner Vincent-Lang turned to  slide 8 and addressed a                                                                    
budget highlight within the  Habitat Section. The department                                                                    
had realized it could charge  certain permitting fees to the                                                                    
federal  government  through   highway  projects  and  other                                                                    
things.  He reported  DFG had  reduced  the Habitat  Section                                                                    
budget  by  $25,000  UGF  and  would  renegotiate  with  the                                                                    
Department  of  Transportation   and  Public  Facilities  to                                                                    
increase  RSA (reimbursable  services  agreement) fees  that                                                                    
could be  passed on to  the federal government  for permits.                                                                    
He reviewed  two highlights within the  Subsistence Section.                                                                    
The department  had located  additional federal  funding and                                                                    
would   replace   state   funding  to   continue   important                                                                    
subsistence research  across the  state. The  department had                                                                    
also  found  $550,000  in federal  funding  for  subsistence                                                                    
research  in   Interior  Alaska,  primarily  in   the  Yukon                                                                    
Kuskokwim  region and  had  submitted  an associated  budget                                                                    
amendment.                                                                                                                      
                                                                                                                                
Co-Chair  Foster referred  to the  topic of  subsistence. He                                                                    
asked what  DFG was  doing with regard  to help  reverse the                                                                    
depleted chum and  chinook stock on the  Yukon Kuskokwim. He                                                                    
referenced the  subsistence research  funds of  $550,000 and                                                                    
asked if  there was any possibility  regarding hatcheries or                                                                    
other ideas to try to reverse the decline.                                                                                      
                                                                                                                                
Commissioner Vincent-Lang  answered that the  department had                                                                    
been surprised by  the failure of the chum run  in the Yukon                                                                    
Kuskokwim  River in  the  past year.  He  reported that  all                                                                    
indications  had pointed  toward positive  chum numbers  for                                                                    
subsistence     fishing    and     potentially    commercial                                                                    
opportunities. Due  to the low  numbers, DFG had  closed the                                                                    
Yukon and  Kuskokwim River  drainages and  had gone  down to                                                                    
the near  shore marine  waters to ensure  escapement numbers                                                                    
were met.  He relayed that king  salmon had been at  a lower                                                                    
level for  some time.  He explained that  DFG was  trying to                                                                    
piece  together  what  could have  caused  the  failure.  He                                                                    
stated there  could be pieces  in fresh water;  however, all                                                                    
indications  pointed  toward  a  shift  in  the  ocean.  The                                                                    
department did  not know what  that shift was, but  crab had                                                                    
decreased in  the Bristol Bay  region as well.  He explained                                                                    
that crab and  many of the salmon  species, especially chum,                                                                    
were inhabiting the  same waters. He stated it  could be due                                                                    
to  resource competition  and  salmon and  crab  may be  the                                                                    
losers in  the "warm blob"  that occurred in the  region. He                                                                    
detailed that cod and sablefish  could be out-competing them                                                                    
and eating juveniles.                                                                                                           
                                                                                                                                
Commissioner  Vincent-Lang relayed  that the  department had                                                                    
used some  funds out of  the salmon treaty to  begin piecing                                                                    
together involvement  in some of  the International  Year of                                                                    
the Salmon  research projects. The department  was trying to                                                                    
understand what  was happening in  the ocean in  relation to                                                                    
how  chemistry and  zooplankton conditions  may be  changing                                                                    
and   how  it   was  impacting   salmon  productivity.   The                                                                    
department  had   also  secured  approximately   $1  million                                                                    
through  Congress  for  research  on  the  Yukon  River.  He                                                                    
elaborated  that DFG  was looking  at ichthyophonus  studies                                                                    
for  king  salmon  in  the  Yukon River,  as  well  as  some                                                                    
additional  radio  telemetry  studies.  The  department  was                                                                    
discovering fish  passing at the  pilot station  sonar site,                                                                    
but  the fish  were not  showing up  at the  Canadian border                                                                    
where  there  were  passage  requirements  into  Canada.  He                                                                    
explained the work would all  be aimed towards understanding                                                                    
where the  fish were going  and would hopefully lead  to new                                                                    
sonar site on the river.                                                                                                        
                                                                                                                                
2:47:03 PM                                                                                                                    
                                                                                                                                
Commissioner   Vincent-Lang   addressed  Co-Chair   Foster's                                                                    
question  about the  rehabilitation of  the salmon  runs. He                                                                    
explained  it  was  a   very  complex  question,  especially                                                                    
pertaining to the  Yukon. He detailed there  were three fish                                                                    
runs including  a summer chum  run, a  fall chum run,  and a                                                                    
king run.  He elaborated  that the fall  chum and  king runs                                                                    
were covered  by the Pacific  Salmon Treaty.  The department                                                                    
had passage  obligations with Canada and  whatever the state                                                                    
did with the two runs  required discussion and approval from                                                                    
Canada. He noted  that the summer chum run  was Alaska based                                                                    
and did  not have  the same constraints.  With part  of some                                                                    
new federal  money, DFG had  started the evaluation  of what                                                                    
it could  do for  the rehabilitation of  the salmon  runs in                                                                    
terms  of  hatchery  production.   The  first  step  was  to                                                                    
complete the comprehensive salmon plan  that had been on the                                                                    
books  for  about   four  or  five  years   sitting  on  the                                                                    
sidelines.                                                                                                                      
                                                                                                                                
Commissioner  Vincent-Lang shared  that  the department  had                                                                    
also engaged  the Yukon workgroup  under the  Pacific Salmon                                                                    
Treaty to  determine what  it could  do or  could not  do in                                                                    
terms  of enhancement  or rehabilitation  of  the runs.  The                                                                    
department  had recently  begun  discussions on  potentially                                                                    
partnering with  Canada to get  some additional  king salmon                                                                    
production on the  Canadian side of the  border, which would                                                                    
benefit  all users  going up  the river.  He explained  that                                                                    
additional production  in the Tanana would  only benefit the                                                                    
lower and  middle river.  He remarked  on the  complexity of                                                                    
the situation.                                                                                                                  
                                                                                                                                
Co-Chair Foster  stated his understanding of  the complexity                                                                    
of the  situation and the  need to  work with Canada  on the                                                                    
issue. He asked if the  department would use the $550,000 in                                                                    
federal  funds   [on  slide  8]  to   begin  evaluating  the                                                                    
possibility of using  hatcheries. Alternatively, he wondered                                                                    
if  the  study would  be  generalized  or more  specific  in                                                                    
nature.                                                                                                                         
                                                                                                                                
Commissioner Vincent-Lang  answered that the  $550,000 would                                                                    
be  used to  update the  subsistence use  surveys throughout                                                                    
the  Yukon  River  drainage.  The  department  was  using  a                                                                    
different pot of money from  Congress to look at evaluations                                                                    
of rehabilitation or enhancement runs.                                                                                          
                                                                                                                                
2:49:38 PM                                                                                                                    
                                                                                                                                
Representative  Wool referenced  Commissioner Vincent-Lang's                                                                    
mention  of the  warm  water blob  in  addition to  numerous                                                                    
other  possible  causes for  diminishing  fish  runs in  the                                                                    
Yukon  River.  He  asked   where  rising  ocean  temperature                                                                    
factored  in.  He  stated  certain  species  were  migrating                                                                    
further  north  to  find colder  water.  He  considered  the                                                                    
predator/prey equation.  He wondered  how much of  the issue                                                                    
pertained to ocean temperature.                                                                                                 
                                                                                                                                
Commissioner Vincent-Lang  replied that  a couple  of things                                                                    
happened when  the ocean temperature rose.  He detailed that                                                                    
the   zooplankton  composition   changed  and   became  less                                                                    
nutritious to  salmon. Additionally, the energetic  needs of                                                                    
salmon  increased as  water warmed.  The combination  of the                                                                    
two factors led  to a lower survival rate,  returning to the                                                                    
river  systems because  the ocean  was  not hospitable,  and                                                                    
returning  smaller at  age. All  of the  factors were  being                                                                    
witnessed. He  reported that  species competing  with salmon                                                                    
in  the   ocean  were  somewhat   winning  the   battle.  He                                                                    
elaborated  that  sablefish  were  more  successful  in  the                                                                    
conditions.  He believed  the same  thing had  happened with                                                                    
crab.  He remarked  that  there had  been  declines in  chum                                                                    
salmon in the past. He relayed  there had been a chum salmon                                                                    
collapse in the  Yukon almost 15 years  back. He highlighted                                                                    
that in the next several  years there were high escapements;                                                                    
therefore, if  ocean conditions changed, DFG  was optimistic                                                                    
the  situation  would  turn  around.   He  noted  there  was                                                                    
information being collected currently  in the Bering Sea and                                                                    
North  Gulf  indicating  that  the  temperature  regime  was                                                                    
shifting back.                                                                                                                  
                                                                                                                                
2:51:56 PM                                                                                                                    
                                                                                                                                
Commissioner  Vincent-Lang reviewed  slide  9 and  discussed                                                                    
legislative  priorities.  He  began  with  the  department's                                                                    
priority  of  the  Sport   Fish  Hatchery  Facility  Account                                                                    
surcharge  (HB  80). He  relayed  that  15 years  back,  the                                                                    
department had  built two sport fish  hatcheries with bonds,                                                                    
which were repaid with  surcharges on sportfishing licenses.                                                                    
He  explained that  the  surcharge had  gone  away when  the                                                                    
bonds were paid off. The  department was proposing a smaller                                                                    
surcharge  on   sport  fishing  licenses  to   pay  for  the                                                                    
maintenance associated  with the  two hatcheries  located in                                                                    
Fairbanks  and Anchorage.  Additionally,  about $500,000  of                                                                    
the  funding had  previously gone  to Southeast  (because it                                                                    
did not  receive any  benefits from  the two  hatcheries) to                                                                    
pay  for   Crystal  Lake  operations  and   Juneau  stocking                                                                    
programs. He  explained that without a  surcharge, the items                                                                    
were in  jeopardy. The state would  have to pay for  the two                                                                    
hatcheries one  way or another and  he did not want  to take                                                                    
funds  from  research  and management  programs  across  the                                                                    
state.  He   preferred  the  surcharge.  He   reported  that                                                                    
sportfish and angler groups across  the state were generally                                                                    
in support of the proposal.                                                                                                     
                                                                                                                                
Commissioner   Vincent-Lang  highlighted   the  department's                                                                    
second legislative priority shown at  the bottom of slide 9.                                                                    
The department supported  the passage of HB  79, a saltwater                                                                    
sportfishing  operator/guide  licensing  bill.  He  remarked                                                                    
that both bills  (HB 80 and HB 79) had  passed the House and                                                                    
were sitting  in the Senate.  He highlighted  the importance                                                                    
of the  program [under  HB 79]  because DFG  had obligations                                                                    
under the  Halibut Act and  Pacific Salmon Treaty  to report                                                                    
on halibut  and king salmon harvest  numbers. The department                                                                    
was currently  doing the work with  [federal] Dingle-Johnson                                                                    
dollars and  was looking for additional  federal funding. He                                                                    
highlighted support from the  saltwater charter industry and                                                                    
was trying to get the legislation through the Senate.                                                                           
                                                                                                                                
Vice-Chair Ortiz  stated that the job  of managing fisheries                                                                    
resources was difficult. He believed  one way to enhance the                                                                    
management was trying to  achieve increasingly accurate data                                                                    
collection.  He asked  about  how  the department  currently                                                                    
tried  to  discern the  resource  take  in the  sportfishing                                                                    
industry.  He stated  his understanding  of  the attempt  to                                                                    
capture  information through  creel census  and a  voluntary                                                                    
end of  the year report by  license owners. He asked  if his                                                                    
understanding was accurate.                                                                                                     
                                                                                                                                
Commissioner Vincent-Lang  answered there were two  ways the                                                                    
department  estimated  sport  harvest.  The  first  was  the                                                                    
charter sector through the logbook  program. The program was                                                                    
being converted to an electronic  format in order to receive                                                                    
information  in  a more  timely  and  efficient manner.  The                                                                    
second  method used  unguided anglers.  He noted  the second                                                                    
method  was  harder  to  capture.   He  explained  that  the                                                                    
department conducted  creel surveys on the  dock; the method                                                                    
did not get  every angler, but it reached enough  to be able                                                                    
to  extrapolate  the  total   harvest.  He  noted  that  the                                                                    
department  needed  to  be  on  the  dock  to  estimate  the                                                                    
composition   of  the   catches.  He   elaborated  that   in                                                                    
Southeast, DFG needed  to know how much of  the catches were                                                                    
from local hatchery stocks versus  catches covered under the                                                                    
treaty. He  stated that hatchery  stocks were  add-ons under                                                                    
the treaty.  The department did  a creel survey  to estimate                                                                    
the  numbers  and  fish sampling  to  estimate  the  genetic                                                                    
composition.  He relayed  the  department  was beginning  to                                                                    
experiment with some new technology  and was beta testing an                                                                    
iPhone app  that would include  a reporting  requirement. He                                                                    
detailed the app would allow users to report a harvest.                                                                         
                                                                                                                                
2:56:28 PM                                                                                                                    
                                                                                                                                
Vice-Chair Ortiz  asked where the effort  stood. He wondered                                                                    
if it would be in the  interest of better management to have                                                                    
a system where a  sportfish license required license holders                                                                    
to record their catch on the day of the catch.                                                                                  
                                                                                                                                
Commissioner Vincent-Lang answered it  was the direction the                                                                    
department was moving. He noted  the department did not want                                                                    
to move too fast. He  highlighted there were groups in other                                                                    
states  experimenting that  had  much  better cell  coverage                                                                    
than Alaska. He explained the DFG  app would allow a user to                                                                    
record  at  the time  of  catch  and the  information  would                                                                    
upload once the user was in  cell range. He offered to share                                                                    
the beta app link with committee members.                                                                                       
                                                                                                                                
Vice-Chair  Ortiz  asked if  a  move  towards that  type  of                                                                    
system would  be cost  burdensome on  users. He  wondered if                                                                    
the  software  would  be part  of  the  license  acquisition                                                                    
process.  He  asked if  it  would  greatly increase  license                                                                    
costs for instate anglers.                                                                                                      
                                                                                                                                
Commissioner  Vincent-Lang answered  that the  app would  be                                                                    
free to users.                                                                                                                  
                                                                                                                                
2:58:04 PM                                                                                                                    
                                                                                                                                
Commissioner Vincent-Lang  turned to slide 10  and discussed                                                                    
issues/challenges facing  the department. The first  item on                                                                    
the  list was  the reduced  marine survivals  of salmon.  He                                                                    
stated the situation was a  "huge unknown." He detailed that                                                                    
the department had  a pretty good understanding  of what was                                                                    
happening across  freshwater throughout the state  as it was                                                                    
relatively much easier to sample  fish in freshwater than it                                                                    
was  out  in the  ocean.  The  department  had come  to  the                                                                    
realization it would not be able  to do the work on its own;                                                                    
it  did  not  have  the   capacity  or  ship  capacity.  The                                                                    
department was  partnering with different  groups to  try to                                                                    
get a handle on what was happening in the ocean.                                                                                
                                                                                                                                
Commissioner Vincent-Lang  shared that he currently  had two                                                                    
or  three  staff  on  a  National  Oceanic  and  Atmospheric                                                                    
Administration   (NOAA)  boat   in   the   Gulf  of   Alaska                                                                    
participating  in  the  International  Year  of  the  Salmon                                                                    
research. Additionally,  two Alaskans would be  going out on                                                                    
a Russian  vessel to  do research in  the western  gulf. The                                                                    
department was  also finding  non-UGF money  sources through                                                                    
the  Pacific Salmon  Treaty and  the North  Pacific Research                                                                    
Board.  He explained  that  if  the state  did  not have  an                                                                    
understanding  about what  was  happening in  the ocean,  it                                                                    
would be  very restricted in  how to better  understand what                                                                    
was happening with the salmon.                                                                                                  
                                                                                                                                
Commissioner  Vincent-Lang shared  that DFG  had started  to                                                                    
research in  the near-shore marine environment  to determine                                                                    
what  was happening  with chum  salmon, especially  north of                                                                    
the  Yukon. The  department  had a  couple  of proposals  to                                                                    
extend the  research into  the southern  Bering Sea  and the                                                                    
north Gulf  of Alaska  to gain  a better  understanding. The                                                                    
second  issue  listed on  slide  10  was increasing  federal                                                                    
intrusion  into state  management  authority. He  understood                                                                    
the   state  would   have  differences   with  the   federal                                                                    
government; however, when the  federal government stepped in                                                                    
and managed  a river,  there were  numerous state  users who                                                                    
were  displaced  for  a  variety   of  economic  and  social                                                                    
reasons.  He stated  it cut  off  the users'  access to  the                                                                    
resource. He stressed  the need to find a  middle ground. He                                                                    
underscored  that  if  there was  enough  resource,  it  was                                                                    
necessary to  find a  way to get  people with  customary and                                                                    
traditional  practices living  in urban  areas out  to rural                                                                    
areas to fish and hunt.                                                                                                         
                                                                                                                                
Commissioner Vincent-Lang  addressed the third  bullet point                                                                    
on slide  10: COVID-19 and  its impacts, e.g.,  lost license                                                                    
revenue  to  Fish  and  Game  Fund.  He  detailed  that  the                                                                    
Division  of  Sportfish had  taken  a  hit because  of  non-                                                                    
resident  license sales  during  the  pandemic. He  reported                                                                    
that DFG  had adjusted the  sportfish budget to  address the                                                                    
issue  and  was  more  highly  dependent  on  Dingle-Johnson                                                                    
dollars. Additionally,  the department had  transferred some                                                                    
remaining  revenue left  in the  surcharge bill  after bonds                                                                    
were paid off.  He believed the division was  making its way                                                                    
out of the impact.                                                                                                              
                                                                                                                                
Commissioner Vincent-Lang relayed  the department was seeing                                                                    
impacts  associated with  implementation  of the  Endangered                                                                    
Species Act and the Marine  Mammal Protection Act. He stated                                                                    
the impacts across the state  were huge. He used the killing                                                                    
of a polar bear as an example.  He stated that the take of a                                                                    
polar bear was not what  most people would think. He stated,                                                                    
"it  was  the  fact  that  a polar  bear  might  be  on  the                                                                    
landscape and  through a computer  model you might  fly over                                                                    
it and  that results  in a take."  He stated  the department                                                                    
was  trying  to   bring  some  reality  in   order  to  have                                                                    
conservation of  iconic species and  to protect  and rebuild                                                                    
their  stocks without  unnecessarily  impacting the  state's                                                                    
economic stream.  He relayed that urban  wildlife management                                                                    
issues  were becoming  increasingly  complex.  He noted  the                                                                    
problem of  wildlife coming into urban  areas. He referenced                                                                    
an issue in Haines where 60  bears had been shot a couple of                                                                    
years back. He stated the  department needed to do the right                                                                    
thing instead  of having people  take issues into  their own                                                                    
hands.                                                                                                                          
                                                                                                                                
Commissioner  Vincent-Lang addressed  the last  bullet point                                                                    
on  slide 10:  Hatchery-wild salmon  stock interactions.  He                                                                    
explained there  was currently a large  debate about whether                                                                    
hatchery  stock was  impacting  salmon  productivity in  the                                                                    
ocean. The  department had several studies  underway looking                                                                    
at whether  wild stocks were  being impacted and  whether or                                                                    
not there was food competition.  He relayed that the studies                                                                    
should  be finished  up within  the  next year  or two.  The                                                                    
department expected a return of  about 70 million sockeye to                                                                    
Bristol  Bay in  the coming  season. He  highlighted that  1                                                                    
percent  survived in  the ocean,  meaning 7  billion sockeye                                                                    
were  put  out  into  the  ocean. He  noted  the  number  of                                                                    
hatchery fish  production was nowhere  near that  number. He                                                                    
concluded  there was  a complex  issue  in interaction  that                                                                    
needed better understanding.                                                                                                    
                                                                                                                                
3:03:12 PM                                                                                                                    
                                                                                                                                
Commissioner Vincent-Lang addressed slide 11 related to un-                                                                     
reimbursed  fiscal impacts  due to  COVID-19 in  FY 21.  The                                                                    
Fish and  Game Fund had  lost about $2.7 million  in revenue                                                                    
from sportfish licenses and  stamps. Additionally, there had                                                                    
been a loss of about  $1 million from commercial crew member                                                                    
licenses.  He believed  the  sportfish  licenses would  bump                                                                    
back up,  especially with the cruise  industry returning. He                                                                    
stated that  hopefully the  commercial crew  member licenses                                                                    
would bounce back up as well.                                                                                                   
                                                                                                                                
Representative  Edgmon looked  at  slide 10.  He noted  that                                                                    
Commissioner  Vincent-Lang and  one other  commissioner were                                                                    
the remaining Tier I commissioners.  He remarked there was a                                                                    
lot  of  coming  and  going of  staff.  He  highlighted  how                                                                    
fortunate the  committee was  to have  Commissioner Vincent-                                                                    
Lang sitting  alone at  the table  presenting. He  could not                                                                    
think  of  another agency  that  had  the commissioner  come                                                                    
forward to  present their budget  because they did  not have                                                                    
the background  Commissioner Vincent-Lang had.  He commended                                                                    
the  commissioner  for  his   breadth  of  understanding  on                                                                    
wildlife management  in addition  to fisheries.  He wondered                                                                    
why the loss  of senior staff was not listed  as an issue on                                                                    
slide 10.  He stated it  had always  been an issue  with the                                                                    
department. He wondered if the  problem was mitigated and no                                                                    
longer a benchmark.                                                                                                             
                                                                                                                                
Commissioner Vincent-Lang agreed. He  replied there were two                                                                    
issues  facing the  agency: 1)  maintaining  an interest  in                                                                    
fishing  and hunting  and 2)  recruitment  and retention  of                                                                    
staff. He  remarked that the  state did a lot  of recruiting                                                                    
people to  keep them interested  in hunting and  fishing. He                                                                    
confirmed  that  retention  and  recruitment  of  staff  was                                                                    
becoming  an  increasing  challenge.   He  shared  that  the                                                                    
governor's  cabinet had  recently  discussed  what could  be                                                                    
done to address recruitment  and retention issues. He stated                                                                    
the  issue  was  impacting  each of  the  departments  in  a                                                                    
different way. He communicated that  DFG had lost three area                                                                    
biologists  in the  Cordova office  because  they could  not                                                                    
afford  housing. The  department  was  looking at  different                                                                    
ways  to keep  offices    especially  rural  offices    open                                                                    
throughout the state. He underscored  that the rural offices                                                                    
were critical to maintaining  interaction between people and                                                                    
users. The department  was looking at how  to keep employees                                                                    
out  in  the rural  areas  including  the idea  of  building                                                                    
houses and  giving housing allowances.  He pointed  out that                                                                    
the federal  government was doing  those things.  He assured                                                                    
the  committee  that the  issue  was  on  his mind.  He  was                                                                    
thinking  about different  ways  to address  the problem  in                                                                    
order to have the capable workforce the department needed.                                                                      
                                                                                                                                
3:06:40 PM                                                                                                                    
                                                                                                                                
Representative  Edgmon understood  the issue  of recruitment                                                                    
and  retention was  multifaceted. He  was concerned  that 16                                                                    
years after the  Defined Benefit plan was  annulled in 2006,                                                                    
the state  was starting  to see  the downstream  impacts. He                                                                    
recognized that housing and other  issues contributed to the                                                                    
situation.  He  referenced  the Pitman-Robertson  funds  and                                                                    
asked about  the ability to  secure increased  federal funds                                                                    
with the supplanting of increased UGF.                                                                                          
                                                                                                                                
Commissioner  Vincent-Lang  answered  that  with  the  Biden                                                                    
administration there  were many people interested  in buying                                                                    
guns and  ammunition. The department  had just  received its                                                                    
recent apportionment  of Pittman-Robertson funds,  which had                                                                    
increased   by  almost   $18   million.   He  believed   the                                                                    
legislature would  see a supplemental  request to  deal with                                                                    
the  issue.  He  remarked  that  the  Division  of  Wildlife                                                                    
Director Eddie Grasser was very  successful at raising money                                                                    
through  license tags  and a  variety of  other things.  The                                                                    
department  was able  to  match the  federal  funding for  a                                                                    
single year, but  in the future, how  the department matched                                                                    
the funds would be a challenge.                                                                                                 
                                                                                                                                
Representative Edgmon asked for  verification there would be                                                                    
an  opportunity in  the current  budget to  get some  of the                                                                    
federal funding.                                                                                                                
                                                                                                                                
Commissioner Vincent-Lang  answered that the  challenge with                                                                    
Pittman-Robertson funds  was the  concern about  building up                                                                    
the department's  operating budget based on  periodic events                                                                    
and increases  due to  people buying guns  out of  fear that                                                                    
guns  would be  restricted. He  elaborated that  after about                                                                    
four  or five  years  the  department had  seen  it was  not                                                                    
happening; therefore,  the legislature  had granted  DFG the                                                                    
ability  to  move  money  out   of  capital  into  the  core                                                                    
operating budget.  The department was reluctant  to increase                                                                    
the operational side with a  one-time funding source because                                                                    
it  did  not  know   whether  the  [federal]  funding  would                                                                    
increase  or  decrease over  time.  He  stated it  would  be                                                                    
looked  at as  a capital  piece  for the  upcoming year.  He                                                                    
reported that currently, with the  Fish and Game Fund on the                                                                    
wildlife   side,  the   department  was   blessed  to   have                                                                    
sufficient matching funds  for a single year.  He added that                                                                    
over time,  the department  would look at  how to  build the                                                                    
program  into the  operating budget  if  it was  sustainable                                                                    
over time.                                                                                                                      
                                                                                                                                
3:10:02 PM                                                                                                                    
                                                                                                                                
Representative  Thompson asked  about the  issue of  bycatch                                                                    
with salmon and halibut.                                                                                                        
                                                                                                                                
Commissioner  Vincent-Lang  explained  that  bycatch  was  a                                                                    
complex  issue. He  believed there  was a  lot of  confusion                                                                    
over  what  bycatch  was  and was  not.  He  explained  that                                                                    
bycatch  occurred  in  the  ocean  and  included  prohibited                                                                    
species or  fish that were  illegal to retain.  He clarified                                                                    
that  bycatch was  not the  intercept of  salmon in  a mixed                                                                    
stock  fishery,  as  was  taking   place  along  the  Alaska                                                                    
Peninsula. The department was trying  to figure out what was                                                                    
going on  in the Bering Sea  because there had been  a crash                                                                    
in the crab and chum salmon fisheries.                                                                                          
                                                                                                                                
Commissioner  Vincent-Lang  considered whether  bycatch  was                                                                    
causing the  declines or  if it  was only  one piece  of the                                                                    
puzzle.  The department  had started  looking  at the  stock                                                                    
composition  of  the bycatch  in  terms  of salmon  and  was                                                                    
trying to  determine how  much of the  issue was  related to                                                                    
the missing  fish in  the Yukon  River. He  stated it  was a                                                                    
piece of the  puzzle, but based on the  initial evidence, it                                                                    
was not the major contributor  that caused the collapse. The                                                                    
department  was looking  at  what could  be  done to  reduce                                                                    
bycatch because no  one wanted to throw fish  over the side.                                                                    
He  relayed   that  the  governor  had   created  a  bycatch                                                                    
taskforce and  he believed the  governor would  announce the                                                                    
addition of two new inter-river  users to the taskforce. The                                                                    
taskforce  would  consider what  could  be  done to  address                                                                    
bycatch and how it impacted local users.                                                                                        
                                                                                                                                
Commissioner  Vincent-Lang  thanked  the committee  for  its                                                                    
support, and he looked forward to working with members.                                                                         
                                                                                                                                
Co-Chair   Foster   thanked   the   commissioner   for   the                                                                    
presentation.                                                                                                                   
                                                                                                                                
HB 281 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
HB 282 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Foster reviewed the schedule for the following                                                                         
day.                                                                                                                            
                                                                                                                                

Document Name Date/Time Subjects
FY23 DMVA Op Budget Overview HFC 02222.pdf HFIN 2/24/2022 1:30:00 PM
ADFG FY23 HFIN Presentation 2.24.22.pdf HFIN 2/24/2022 1:30:00 PM
02.24.2022 HFC - DCCED Budget Overview 2.24.22.pdf HFIN 2/24/2022 1:30:00 PM
DCCED HFC 02.24.2022 Meeting Followup.pdf HFIN 2/24/2022 1:30:00 PM
DCCED Overview 22422 LGLR Grant Distribution List.pdf HFIN 2/24/2022 1:30:00 PM
DCCED Overview 22422 Nonprofit Grantees by Region and Amount.pdf HFIN 2/24/2022 1:30:00 PM