Legislature(2013 - 2014)BARNES 124

03/22/2013 01:00 PM House RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 21 OIL AND GAS PRODUCTION TAX TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 158 DNR HUNTING CONCESSIONS TELECONFERENCED
Heard & Held
-- Public Testimony from 3:00 - 4:00 p.m. Only --
                 HB 158-DNR HUNTING CONCESSIONS                                                                             
                                                                                                                                
3:19:12 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE announced  that  the next  order  of business  is                                                               
HOUSE  BILL NO.  158,  "An Act  authorizing  the commissioner  of                                                               
natural  resources  to  implement   a  hunting  guide  concession                                                               
program or  otherwise limit the number  of individuals authorized                                                               
to conduct  big game commercial  guiding on state  land." [Before                                                               
the committee was the proposed committee substitute, version 28-                                                                
LS0555\U, Bullard,  3/20/13, adopted  as the working  document on                                                               
3/20/13.]                                                                                                                       
                                                                                                                                
3:19:28 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE   opened  public   testimony  [on   the  proposed                                                               
committee substitute (CS), Version U].                                                                                          
                                                                                                                                
3:19:46 PM                                                                                                                    
                                                                                                                                
THOR  STACEY, Lobbyist,  Alaska Professional  Hunters Association                                                               
(APHA),  referred  to  page  3,  lines  3-9,  of  Version  U  and                                                               
suggested  the  word  "determine"  on line  6  be  replaced  with                                                               
"recommend" so  that the  language on lines  4-7 would  read "the                                                               
commissioner of fish and game  shall recommend ... the number and                                                               
type of concessions".   He said the APHA agrees  that a statutory                                                               
link between  the Alaska  Department of Fish  & Game  (ADF&G) and                                                               
this program is appropriate and that overall it is constructive.                                                                
                                                                                                                                
MR. STACEY noted  the language in Version U on  page 3, lines 12-                                                               
19,  is a  response to  the  concern that  an individual  hunting                                                               
guide  could hold  a total  of six  federal and  state concession                                                               
permits.  However,  he pointed out, AS 08.54.750  already holds a                                                               
registered guide  to three guide  use areas irrespective  of land                                                               
status  within  those,  and therefore  this  concern  is  already                                                               
addressed in  statute.  The  APHA feels that if  concessions were                                                               
further  counted against  the total  it  could cause  significant                                                               
portions  of state  land, or  small inholdings  within guide  use                                                               
areas, to  be unused  or extraordinarily  valuable, which  is not                                                               
necessarily  within  the  intent  of  keeping  those  three  area                                                               
limitations intact.                                                                                                             
                                                                                                                                
MR. STACEY said development of  a transporter concession [Version                                                               
U, page 3, beginning on line  25] is perhaps the most significant                                                               
change from the  original bill.  He said APHA  is very supportive                                                               
of  big game  commercial  services generally  having good  public                                                               
oversight  and is  supportive  of the  concept  of a  transporter                                                               
concession program.  However, he  cautioned, the guide concession                                                               
program took  seven years  of diligent hard  work to  develop and                                                               
that  question is  now  before  this body  as  a fully  developed                                                               
concept.   The APHA  is hopeful  that the  same process  would be                                                               
applied to the future transporter concession program.                                                                           
                                                                                                                                
3:22:39 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FEIGE,  responding  to Representative  Tuck,  clarified                                                               
that  Mr.  Stacey  is  referring directly  to  the  proposed  CS,                                                               
[Version U], and the amendments  [to the original bill] that were                                                               
incorporated into the CS.                                                                                                       
                                                                                                                                
3:22:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  requested reiteration  of how the  number of                                                               
concessions is already addressed in statute.                                                                                    
                                                                                                                                
MR.  STACEY replied  an individual  registered hunting  guide can                                                               
hold only  three guide use areas.   Guide use areas  are subunits                                                               
of a game  management unit (GMU).  For example,  a guide use area                                                               
in GMU  9 would  be referred  to as  0309 and  there might  be 20                                                               
different  guide use  areas.   These  guide use  areas take  into                                                               
account  physical  boundaries,  barriers, historic  use,  and  so                                                               
forth.   The attempt was  to draw them  up with 100  percent land                                                               
status -  all federal or all  state, some private -  but that was                                                               
impossible to  do as can be  seen by the checkerboard  on the map                                                               
of  the state  land status.   Within  a guide  use area  there is                                                               
usually a majority of state  or federal land, but sometimes there                                                               
are minority pieces  within that.  Sometimes a  person might have                                                               
to  apply for  a permit  for a  very small  piece within  his/her                                                               
guide use area.   If a person does not have the  ability to do so                                                               
because  he/she has,  say, three  federal concessions,  then that                                                               
tiny  inholding of  state  land  could, if  in  a very  favorable                                                               
location, dominate the rest of the  guide use area.  Or, it could                                                               
go unused because it  is not a big enough unit  to be valuable as                                                               
a concession,  but it  is unused  because the  federal concession                                                               
holder could not apply for land use authorization there.                                                                        
                                                                                                                                
3:24:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  stated the  intent of  this provision  is to                                                               
open  it  up  for  more   opportunities  for  more  people.    He                                                               
understood  Mr.  Stacey  to  be saying,  however,  that  this  is                                                               
adequately done under current state statute.                                                                                    
                                                                                                                                
MR. STACEY responded correct.                                                                                                   
                                                                                                                                
REPRESENTATIVE TUCK  further understood  Mr. Stacey to  be saying                                                               
that keeping  this provision  in the proposed  CS could  create a                                                               
potential problem.                                                                                                              
                                                                                                                                
MR.  STACEY answered  the  potential problem  is  that there  are                                                               
small  inholdings that  are  either  extraordinarily valuable  or                                                               
unintentionally  unused.   The state  has  a historic  compromise                                                               
where  guides   are  limited  to  three   geographic  areas;  the                                                               
individual land status  within is the question  with a concession                                                               
program.  The APHA's position is  that it is already addressed in                                                               
statute.                                                                                                                        
                                                                                                                                
3:25:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  understood Mr. Stacey to  be describing a                                                               
state  concession  area that  might  have  a small  federal  area                                                               
inside it or  vice versa.  He asked whether  APHA's concern would                                                               
be satisfied with  a provision that excludes a  state area within                                                               
a federal area or an area within a state area.                                                                                  
                                                                                                                                
MR.  STACEY replied  if there  is a  sliver, and  that sliver  is                                                               
excluded, there  would need to  be a  definition of sliver  - how                                                               
small does  small become.   One person's  definition of  a sliver                                                               
might be  a very valuable  piece of beach  in a brown  bear area.                                                               
The guide  use areas already  in place, he explained,  have drawn                                                               
in those  compromises - historic  use, physical barriers,  and so                                                               
forth.   The APHA's position  is that the  guide use area  is the                                                               
best type  of three-area limitation.   Additionally, the industry                                                               
is currently  set up around  that so  a guide cannot  control too                                                               
much land.                                                                                                                      
                                                                                                                                
3:27:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON understood if  this proposed provision was                                                               
implemented  a guide  could hold  three  federal concessions  and                                                               
three state concessions, excluding the small slivers.                                                                           
                                                                                                                                
MR. STACEY  responded absolutely.   He posed a scenario  of three                                                               
different landholders  within one guide  use area, each  of which                                                               
has  concessions covered  under this  provision.   A guide  would                                                               
have  to apply  for each  one of  those concessions,  but another                                                               
guide could also apply for those  concessions.  So this guide use                                                               
area  can  now  provide  more   opportunity.    A  guide  is  not                                                               
guaranteed  to get  that just  because he/she  has the  guide use                                                               
area.   There could  be three  difference concessions  within one                                                               
guide  use  area, which  is  an  extreme  example and  very  rare                                                               
situation within  the state.   So  a guide would  not want  to be                                                               
prevented from applying for concessions  within another guide use                                                               
area  because he/she  is already  geographically limited  to that                                                               
area.  He allowed it is confusing  to add this layer of guide use                                                               
area, but it is part of the professional licensing.                                                                             
                                                                                                                                
3:28:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  commented  that   "guide  use  area"  is                                                               
somewhat of a new term.                                                                                                         
                                                                                                                                
CO-CHAIR FEIGE stated,  "'Guide use area' is what  they are using                                                               
now".                                                                                                                           
                                                                                                                                
REPRESENTATIVE  JOHNSON presumed  that guide  use areas  would go                                                               
away with the concessions.                                                                                                      
                                                                                                                                
MR. STACEY  stated guide  use areas  would not go  away.   In the                                                               
vast majority  of the state, he  continued, there is one  type of                                                               
concession  within  each guide  use  area  so that  a  concession                                                               
boundary and a  guide use area boundary line up.   However, it is                                                               
not that way  everywhere.  For example, "I register  for 0902 and                                                               
2602, let's say, different guide use  areas.  Generally it is the                                                               
same  land  status within  those,  but  there are  some  specific                                                               
differences  where   you  might   have  to  hold   two  different                                                               
concessions in that area now."                                                                                                  
                                                                                                                                
3:29:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  understood that would be  true whether it                                                               
is state or  federal under this program, "so you'd  still have to                                                               
hold two if it's all on state land."                                                                                            
                                                                                                                                
MR. STACEY answered  absolutely.  The concern is that  if a guide                                                               
has such  a small concession  that it is not  economically viable                                                               
and the  person that has the  majority of the land  status around                                                               
it cannot apply it, it would lay fallow and be unused.                                                                          
                                                                                                                                
3:29:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON inquired  what  is  keeping someone  else                                                               
from applying for that and making it not unused.                                                                                
                                                                                                                                
MR. STACEY replied there is a  low density of animals and not all                                                               
land is created equal.  It  takes so much land to create economic                                                               
viability.   No  one can  have  a reasonable  opportunity if  too                                                               
small of a  concession is within a guide use  area and the person                                                               
with the  federal land  that is surrounding  it cannot  apply for                                                               
it.  As it stands currently,  the federal operator is just paying                                                               
$500 to  hunt on  state land  there now;  that operator  does not                                                               
have to compete at  all.  It is within his guide  use area, so he                                                               
would not be getting more land than what he has currently.                                                                      
                                                                                                                                
3:30:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON said he needs  to become familiar with the                                                               
guide use area  under the new concession area.   He asked whether                                                               
[the  guide  use  area]  is  going   to  go  away  and  said  his                                                               
understanding is that  the new concession area  becomes the guide                                                               
use area.                                                                                                                       
                                                                                                                                
MR.  STACEY responded  the guide  use  areas were  drawn up  with                                                               
historical  compromise,  such  as  what   is  big  enough  to  be                                                               
commercially  viable depending  on the  part of  the state.   For                                                               
instance, guide  use areas in  Southeast Alaska are  much smaller                                                               
than in  the Arctic.   So these  guide use areas  came out  of "a                                                               
situation with  commerce" and now  the landholder - the  state or                                                               
federal agency  or whoever it is  - has attempted to  match these                                                               
concessions  with the  borders of  the guide  use areas,  and the                                                               
vast  majority of  them  were  successful.   There  are very  few                                                               
instances where  the situation being  talked about  would happen,                                                               
but  it  could  cause  that  land to  be  unused,  which  is  not                                                               
something APHA would want to see happen.                                                                                        
                                                                                                                                
3:31:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE  announced the committee would  ask the Department                                                               
of Natural Resources (DNR) to provide further clarification.                                                                    
                                                                                                                                
CO-CHAIR  FEIGE requested  witnesses  to  address their  comments                                                               
specifically  to  the  amendments  that  were  incorporated  into                                                               
Version U.                                                                                                                      
                                                                                                                                
3:32:37 PM                                                                                                                    
                                                                                                                                
TIM  BOOCH, Master  Guide  176, testified  he  conducts hunts  on                                                               
Native,  state,   and  federal  refuge  lands.     Regarding  the                                                               
provision for  the Department  of Natural  Resources (DNR)  to be                                                               
able to  deal with transporters,  he maintained that that  is the                                                               
Big Game  Commercial Services Board's job  to do.  As  written in                                                               
Version U [page 3, line 26],  he said the "may" just means maybe,                                                               
not for  sure.   This guide  concession program  has a  number of                                                               
things the  guide industry and  APHA do  not support.   There are                                                               
things that  need to be ironed  out and he has  little confidence                                                               
that they will.   He said he has offered  alternatives to this in                                                               
his [earlier]  comments to DNR and  to the committee.   The Board                                                               
of  Game and  the  Big  Game Commercial  Services  Board are  the                                                               
state's tools  tasked and funded  to regulate the  guide industry                                                               
and allocate the resources.   However, they are hamstrung by this                                                               
plan,    which   is    evidenced    in    the   cherry    picking                                                               
allocation/application of the drawing permits.                                                                                  
                                                                                                                                
MR. BOOCH  stated the  Kodiak model  represents the  time tested,                                                               
precedent-setting  allocation for  drawings in  the  state.   For                                                               
high-profile, guide-required species that  focus the attention of                                                               
guides and  residents on  a limited resource,  the Board  of Game                                                               
has developed  a very  good system.   The [3/13/13]  testimony by                                                               
Mr.  Tiffany  of the  APHA  did  not  bring up  the  guide/client                                                               
agreement, an  established pre-requisite  in these  drawings that                                                               
establishes a  relationship with  the guide and  the hunter.   He                                                               
disagreed with Mr. Tiffany's testimony  that Cabela's and big box                                                               
booking agencies can  flood the drawing such that  a guide cannot                                                               
have a viable  guide business in a drawing, and  pointed out that                                                               
there are  viable guide  businesses on  Kodiak Island,  which has                                                               
nine state land guide use areas  with multiple guides.  The Board                                                               
of  Game and  the Big  Game Commercial  Services Board  should be                                                               
allowed to  use those tools, and  those tools do work.   He urged                                                               
HB  158 be  tabled until  the  legislature decides  on this  most                                                               
important cultural and economic issue in Alaska.                                                                                
                                                                                                                                
3:35:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON said it  sounds like Mr. Booch is saying                                                               
"the big  game guys" have tried  to circumvent the Board  of Game                                                               
to get legislators to do something different.                                                                                   
                                                                                                                                
MR. BOOCH  replied he is  not saying  that.  Continuing,  he said                                                               
there are a  number of different powers  in this.  The  APHA is a                                                               
leading  conservation  group  and  voice,  but  there  is  not  a                                                               
consensus within  the APHA.   That  is not  because the  board of                                                               
directors and  the people  involved have  not tried  to represent                                                               
that; it  is that some of  the members feel they  are not welcome                                                               
to.   Those people who are  Class A guides, or  assistant guides,                                                               
or apprentices, or  who do not do  a lot of hunts,  feel they are                                                               
not even pertinent in the issue.   The point is there are certain                                                               
members  of the  Board  of Game  who have  bought  into this  and                                                               
legitimately feel  it is their task  to promote this and  so they                                                               
have  deferred  from  implementing  a  standard  uniform  drawing                                                               
permit application, which  is the Kodiak model.   It covers every                                                               
problem  that  possibly  can  occur.    Mr.  Tiffany's  [3/13/13]                                                               
testimony that the  guide concession program is going  to get rid                                                               
of the need for a drawing is not  true, he asserted.  "If it is a                                                               
guide required for nonresident species  where multiple guides and                                                               
residents compete,  if it is within  ... easy access and  it is a                                                               
high profile  hunt, then it is  going to be a  drawing regardless                                                               
of what DNR does."                                                                                                              
                                                                                                                                
3:37:44 PM                                                                                                                    
                                                                                                                                
MR. BOOCH,  continuing his response to  Representative P. Wilson,                                                               
said  the  Big Game  Commercial  Services  Board should  also  be                                                               
allowed ...  There is now  a precedent setting regulation in Unit                                                               
9 where  there is spatial  distribution between camps.   However,                                                               
the board did  not include in that regulation  the DNR registered                                                               
camps,  which is  where the  established guides  are.   The board                                                               
just said permanent  camps, but that is a  precedent setting tool                                                               
right  there [that  could be]  implemented statewide  and include                                                               
DNR camps.   A federal  style perspective  is not needed  and DNR                                                               
running  the  guide  industry  is  not  needed.    The  Big  Game                                                               
Commercial   Services  Board   will   regulate   where  a   guide                                                               
establishes a camp, so DNR does  not have to try to deny anybody.                                                               
A guide wanting a  camp could either have a DNR  camp or could go                                                               
get  one still.    On  a prospectus  with  this 14-day  statewide                                                               
permit, a  guide could not prove  where he/she hunts.   These are                                                               
alternatives, he  said.  The Board  of Game has dropped  the ball                                                               
and is  cherry picking in these  allocations. One area has  an up                                                               
to  10  percent allocation,  which  means  nothing to  the  guide                                                               
industry  if the  residents take  it all.   The  policy used  for                                                               
drawing allocation is  the past 10 year average, but  that is not                                                               
done.   Or there  is a  50 percent  guide allocation  for Koyukuk                                                               
moose.    Or  there  is  the  Kodiak  Island  model  of  separate                                                               
nonresident  and   resident  allocation,  and   the  guide/client                                                               
agreement up front establishes a  relationship with the guide and                                                               
the  hunter.   The  hunter  has to  be  registered  prior to  the                                                               
drawing  application.     Establishment   of  the   Kodiak  model                                                               
eliminated guides  that were prospecting.   There are  tools that                                                               
can be used.   [The bill] has gaps and  big glaring mistakes that                                                               
should be looked at.                                                                                                            
                                                                                                                                
3:40:14 PM                                                                                                                    
                                                                                                                                
Mr.  BOOCH, in  response  to Co-Chair  Feige,  agreed to  provide                                                               
further information  about the Kodiak model  to Representative P.                                                               
Wilson.  Responding  to Representative Tarr, Mr.  Booch agreed to                                                               
send information about  how he is regulated by the  U.S. Fish and                                                               
Wildlife Service, Native corporations, and DNR.                                                                                 
                                                                                                                                
3:41:08 PM                                                                                                                    
                                                                                                                                
DICK  ROHRER  testified he  served  on  the Big  Game  Commercial                                                               
Services Board for  five years when it  specifically went through                                                               
the whole state with lots of  public input at many board meetings                                                               
to adjust the guide-outfitter use  area boundaries and add within                                                               
those the state  guide concession area boundaries.   He concurred                                                               
with the  changes suggested by  Mr. Stacey.   The guide-outfitter                                                               
use area boundaries  as they exist today, and that  whole body of                                                               
legislation and  regulation, cannot go  away, he said.   He spent                                                               
10 years working to get  those boundaries, specifically on Kodiak                                                               
Island,  to  coincide  so  that   the  guide-outfitter  use  area                                                               
boundary  would  be  the  same  as the  brown  bear  permit  area                                                               
boundary  would  be  the  same as  the  federal  concession  area                                                               
boundaries.   That works fine  on Kodiak on federal  land, except                                                               
for specific  areas that are  very small,  as pointed out  by Mr.                                                               
Stacey.    For   example,  there  is  an  area   that  has  three                                                               
nonresident  bear tags  in the  spring and  two in  the fall.   A                                                               
small portion  of that area is  federal land, a small  portion is                                                               
state land, and  a larger portion is private land.   This area is                                                               
an example of  where it makes sense, and the  Big Game Commercial                                                               
Services Board  has the regulations  and the authority,  to allow                                                               
the  federal   concessionaire  to  attempt  to   have  the  state                                                               
concession within that guide-outfitter  use area boundary.  Since                                                               
it is  only five possible  nonresident bear hunters per  year, it                                                               
is not  reasonable to have  potentially four  different operators                                                               
in that  area.  He  reiterated that the guide-outfitter  use area                                                               
boundaries, as they exist today, may not go away.                                                                               
                                                                                                                                
3:43:53 PM                                                                                                                    
                                                                                                                                
MIKE MCCRARY testified this issue  started in 2007, was developed                                                               
behind closed  doors, and did  not come  out to the  public until                                                               
2010 in  a series  of informational meetings.   The  public never                                                               
really  had any  input  on  change and  the  development of  this                                                               
program, he charged.   There are alternatives that  have not been                                                               
looked at.   This bill  gives DNR authority,  but if DNR  did not                                                               
have  the authority  to do  this  program, his  question is  what                                                               
process DNR  used to go  through the development of  this program                                                               
that  is now  before the  committee.   Occupational licenses  are                                                               
designed to provide assurance to  the public that the licensee is                                                               
qualified  and meets  the  professional  standard.   Occupational                                                               
licenses are not transferable and are  issued to a person and not                                                               
a company.   A hunting license is  issued to a person  and is not                                                               
transferable.   For  example, a  person cannot  be paid  to be  a                                                               
commercial pilot until qualified  to provide that public service.                                                               
The common thread  between a hunting license,  guide license, and                                                               
pilot's license is  that they are issued to  individuals, are not                                                               
transferable,  and  the  person meets  certain  standards  before                                                               
he/she can benefit from that  license economically.  He therefore                                                               
suggested that if  the number of guides needs to  be limited, the                                                               
person actually  conducting the hunt  be limited to  the licensed                                                               
professional qualified guide,  not the private pilot  and not the                                                               
assistant  guide.   If this  program is  implemented, it  will be                                                               
financed on  the backs  of the  public's wildlife  resources, and                                                               
those  resources are  set aside,  protected, by  the constitution                                                               
for the common use of all  Alaskans.  For all Alaskans to benefit                                                               
from such  a proposed  program as this  one, it  would absolutely                                                               
have  to make  a  profit for  the  state that  can  be shared  by                                                               
Alaskans.                                                                                                                       
                                                                                                                                
3:47:12 PM                                                                                                                    
                                                                                                                                
SMOKEY DON DUNCAN, Master Guide  136, testified he has been self-                                                               
employed  in this  industry  since 1986.   He  said  he can  tell                                                               
committee members have  not had time to read his  comments on the                                                               
proposed  amendments that  he sent  by electronic  mail yesterday                                                               
because  otherwise  members  would  not  be  confused  about  the                                                               
[differences between] guide use areas  and guide concessions.  He                                                               
urged his comments  be read before the committee votes.   He said                                                               
last week's  Big Game Commercial  Services Board meeting  had the                                                               
worst  attendance ever  - many  guides  have and  are giving  up.                                                               
Effort to include the Alaska  Department of Fish & Game's (ADF&G)                                                               
input into the guide concession  program is a welcome change, but                                                               
is  six  years  too  late;  DNR has  proceeded  too  far  without                                                               
substantial industry  input.  What  is really needed  is area-by-                                                               
area input  by ADF&G or the  Board of Game.   The legislature, in                                                               
all fairness, should create the  assistant transporter license so                                                               
they  can  pay  their  fair  share.   Currently,  one  person  is                                                               
licensed as  a transporter  business and  a transporter  may have                                                               
multiple assistants  who pay nothing  and are not vetted  like an                                                               
assistant guide.                                                                                                                
                                                                                                                                
MR. DUNCAN said a guide use area  is not the same as a concession                                                               
area.    Typically,  under  guide  statutes  a  guide  must  have                                                               
permission for  5,000 acres of upland  to pick a guide  use area.                                                               
Regarding  Mr.  Stacey's  reference  to  guide  use  areas  being                                                               
developed  on historical  use, Mr.  Duncan maintained  that those                                                               
were the  illegal, exclusive guide  use areas.   "Basically, they                                                               
went back  to almost exactly  the same  lines they used  when the                                                               
Owsichek  [decision] ruled  that  it was  illegal,"  he said.  He                                                               
thanked Representative  P. Wilson for  her amendment to  bring in                                                               
ADF&G and use data, facts,  and evidence to determine if anything                                                               
needs to be  done.  If the problem areas  are addressed, the rest                                                               
of the  state can be left  alone.  Guides objecting  to the guide                                                               
concession program do  not feel it is fixable; there  should be a                                                               
return   to   "square   one"  with   participation   by   guides,                                                               
transporters,  ADF&G, Board  of  Game, and  [Big Game  Commercial                                                               
Services Board].                                                                                                                
                                                                                                                                
3:50:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR noted several  people have suggested that now                                                               
is not the  time; however, she understood this  proposal has been                                                               
worked on for a  number of years.  She asked  Mr. Duncan how long                                                               
it would take if the process was started over.                                                                                  
                                                                                                                                
MR. DUNCAN replied the best action,  the right thing to do, is to                                                               
start from  square one  and do  it right.   He  said he  does not                                                               
believe  public input  was ever  there and  charged that  DNR did                                                               
this behind  closed doors and  did it for a  reason - it  did not                                                               
want  APHA controlling  the input  and  the other  90 percent  of                                                               
guides felt  abandoned and gave  up.   He said he  believes there                                                               
will  be substantial  change  in DNR's  program  if a  meaningful                                                               
process is begun that includes ADF&G,  the Board of Game, and the                                                               
industry.   That will result  in a very viable  program supported                                                               
by the  vast majority of  guides, he predicted, but  this program                                                               
here actually has  the vast majority of  guides adamantly opposed                                                               
to it.   The Board of  Game and the Big  Game Commercial Services                                                               
Board  both dropped  the ball,  putting DNR  in a  bad spot.   He                                                               
recalled ADF&G's representative testifying that  it is not in the                                                               
allocation business because that is  the Board of Game's concern.                                                               
These conflicts  will go  away, he  maintained, if  everybody has                                                               
their  cards on  the table  and these  tough allocations  between                                                               
guides, transporters, and  air taxis are dealt with.   He further                                                               
urged that the  term "transporter" include anybody  who is taking                                                               
a hunter  afield for  money, whether by  air taxi,  horseback, or                                                               
four wheelers.                                                                                                                  
                                                                                                                                
3:53:26 PM                                                                                                                    
                                                                                                                                
DAN WINKELMAN  testified he is a  resident hunter in favor  of HB
158, for  which he has  been waiting 30  years and which  will do                                                               
much  for  stewardship  of  the  land,  conservation,  addressing                                                               
overcrowding, and  preserving resident hunter opportunities.   He                                                               
said his  family has been  hunting in  Unit 19 since  after World                                                               
War II  when his grandfather  and great uncles hunted  there, and                                                               
in  1964 his  father built  three  cabins in  Unit 19C.   He  has                                                               
hunted nearly every  major draw from the Big River  and the Stony                                                               
River all  the way around the  western side of the  range through                                                               
the  Middle  Fork  of  the  Kuskokwim  River.    His  family  has                                                               
inholdings specifically  on the  Windy Fork.   He has  hunted the                                                               
Dillinger and the  South Fork and the Jones River  all the way up                                                               
to Tonzona along the edge of the park.                                                                                          
                                                                                                                                
MR. WINKELMAN  said over the  years he  and his family  have seen                                                               
guides come  and go, with  some years worse.   The Board  of Game                                                               
took some action a few years ago  with Unit 14A that pushed a lot                                                               
of guides  into Unit  19C.   The discussion that  there is  not a                                                               
problem with guides in Unit  19 is completely false, he asserted.                                                               
Any law  enforcement, ADF&G,  and the  biologist, Roger  Savoy in                                                               
McGrath, can tell the committee  that during the months of August                                                               
and September many planes are seen  on all of the major drainages                                                               
all the way through the Alaska Range  on the west side.  This has                                                               
been particularly  worse since the  Board of Game took  action on                                                               
Unit 14A,  which pushed new  guides over to  [Unit 19].   With HB
158,  the  key  to  remember  is that  there  needs  to  be  full                                                               
implementation across  the state and not  just addressing certain                                                               
specific so-called problem areas.   Otherwise, because guides are                                                               
well equipped,  well financed  for the most  part, and  young and                                                               
very mobile,  they will go wherever  they have to go  and that is                                                               
seen in Unit 19.                                                                                                                
                                                                                                                                
3:56:50 PM                                                                                                                    
                                                                                                                                
ISRAEL PAYTON,  Registered Guide 1111, testified  the language of                                                               
"may" versus "shall"  on transporters is weak.   Transporter is a                                                               
term  defined  by the  Big  Game  Commercial Services  Board  and                                                               
transporter  needs to  include everyone  who provides  commercial                                                               
services to a hunter.  The question  to ask here is whether it is                                                               
a  guide  issue  or  the allocation  of  resident  hunter  versus                                                               
nonresident hunter, which is what  it truly boils down to because                                                               
right  now  this  would  restrict  where  guides  could  operate.                                                               
Nothing is restricting the nonresident  drop-off hunter.  What is                                                               
the difference  between the two?   One hires  a guy to  help them                                                               
find the game, the other does  not.  There is no land stewardship                                                               
on  that end.    He said  he  is  a lifelong  Alaskan  and it  is                                                               
unfortunate to  have to say  that some  of the worst  stewards of                                                               
the land  are Alaskans.  Guides  are not even the  user group, he                                                               
argued.   The nonresident  hunter is the  one buying  the license                                                               
and using the resource.  The  guide is just assisting that person                                                               
and the  Board of Game,  ADF&G, the Big Game  Commercial Services                                                               
Board, DNR,  State Troopers, and  the [Division  of Corporations,                                                               
Business and Professional Licensing] oversee all of that.                                                                       
                                                                                                                                
MR. PAYTON acknowledged the guide  industry is split on this, but                                                               
said the question  is whether Alaska is at  carrying capacity for                                                               
guides, which is not known.   The facts he has sent the committee                                                               
indicate guided hunters  in Alaska are down.   Sheep numbers have                                                               
remained stable as  has hunter participation.   There will always                                                               
be hot  spots and  low spots,  but for  the most  part everything                                                               
remains stable.   Legislators  must delve into  this and  ask who                                                               
should be limited  and will this help the resource.   It does not                                                               
limit nonresident hunters coming to  Alaska and they are the ones                                                               
using the resource.  Guides are  not using the resource; they are                                                               
assisting  the users  of the  resource.   One of  two things  can                                                               
happen with this program.   There are 300 concessions and roughly                                                               
300 contracting  guides on state land  and DNR could be  fair and                                                               
give every  guide one  concession, but there  is no  viability in                                                               
having one of these small little  concessions.  Or DNR could give                                                               
the top  100 guides three  concessions each, which would  be very                                                               
viable but  would put  200 working  guides on  state land  out of                                                               
business.                                                                                                                       
                                                                                                                                
4:00:39 PM                                                                                                                    
                                                                                                                                
NATE  TURNER, Registered  Guide  1036, testified  he  has been  a                                                               
registered hunting  guide for  over 12 years  and is  the current                                                               
vice  chair  of the  Board  of  Game.   A  member  of the  Alaska                                                               
Professional Hunters  Association (APHA), he takes  10-12 hunters                                                               
per  year on  state, U.S.  Bureau of  Land Management  (BLM), and                                                               
U.S.  Fish and  Wildlife Service  lands.   He has  U.S. Fish  and                                                               
Wildlife Service  guiding concessions.   He employs  5-6 Alaskans                                                               
each year as assistant guides, most  of them rural residents.  He                                                               
is a trapper  most of the year  in the same area  that he guides.                                                               
For the last 23 years he  has made his entire living from hunting                                                               
and trapping  on those  lands.   About 80  percent of  his income                                                               
comes from guiding,  while about 80 percent of his  time is spent                                                               
trapping.   He also  works as  an assistant  guide for  one other                                                               
registered guide in the state  because it is his only opportunity                                                               
to actually  be in  the field with  his clients.   He said  he is                                                               
basically in  support of  HB 158  and added that  DNR has  made a                                                               
very meaningful step in a  very detailed and laborious process of                                                               
creating  a program  that  addresses  multiple factors  regarding                                                               
stewardship and conservation  issues.  This comes  from the Board                                                               
of Game primarily,  but it started with the public  coming to the                                                               
Board of Game.   He said he agrees with  Mr. Stacey's recommended                                                               
changes.                                                                                                                        
                                                                                                                                
4:03:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON  inquired whether  Mr.  Turner  thinks                                                               
limiting it to  three on state lands would cause  people to go to                                                               
other available lands, such as tribal land.                                                                                     
                                                                                                                                
MR.   TURNER  replied   the  answer   depends   on  whether   BLM                                                               
incorporates its  lands into this  program, which he  expects the                                                               
agency will  do because it  is looking at this  possibility right                                                               
now.   Yes,  it  would definitely  increase  pressure on  private                                                               
lands, he  continued, because people  would try to  utilize those                                                               
if  they  were  unsuccessful  in obtaining  a  state  or  federal                                                               
concession.                                                                                                                     
                                                                                                                                
4:04:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  related the  committee was told  the process                                                               
began  with a  white paper  distributed  in 2009  with a  113-day                                                               
comment period in  which almost 300 comments were  received.  She                                                               
requested those witnesses who felt left  out of the process to e-                                                               
mail the committee about their experience with this process.                                                                    
                                                                                                                                
MR. TURNER  commented his  personal experience  is that  this has                                                               
been a very detailed and open  process.  Admittedly, DNR took the                                                               
public  comments and  went behind  closed  doors to  work on  it,                                                               
which  caused  a lot  of  concern  in  the  industry as  well  as                                                               
resident hunters.  The Board of  Game addressed that by asking to                                                               
be incorporated  into the program  so it could speak  directly to                                                               
some of  the issues and  concerns that the board  had identified.                                                               
He said the Big Game Commercial  Services Board did that as well.                                                               
Since involvement  of these  two boards in  the DNR  process, and                                                               
ADF&G being  at the  table, he said  he personally  believes that                                                               
most of  the concerns  outlined through  the public  process have                                                               
been addressed.   In his opinion, the primary  voices being heard                                                               
now  about  not participating  in  the  public process  are  from                                                               
people who did not think this would  get as far as it has and now                                                               
they are afraid and showing up at the last minute.                                                                              
                                                                                                                                
4:06:53 PM                                                                                                                    
                                                                                                                                
JOE WANT,  Registered Guide AA006,  testified he  became involved                                                               
in the guiding  industry in 1958 packing water,  wood, and horses                                                               
between  Chickaloon  and the  Little  Oshetna  River.   The  next                                                               
spring  he  took  a  job  on Kodiak  Island  with  the  same  job                                                               
description except that  he packed bear hides  instead of horses.                                                               
Based on his  50 years of association with  the guiding industry,                                                               
he  said he  does not  believe that  guides are  stewards of  the                                                               
resource in  the context that  is being presented for  this bill,                                                               
although  they are  concerned about  the resource.   In  the late                                                               
1980s  or  early  1990s,  ADF&G   came  to  the  industry  saying                                                               
something needed to  be done about the sow  harvest; however, the                                                               
industry as  a whole,  with two exceptions,  fought it  tooth and                                                               
nail until economically there was  an alternative that was better                                                               
than the one that was in front of  them.  That does not mean that                                                               
guides are a bunch of sleaze  balls that want to kill everything;                                                               
rather, business  plans and  the way  guides approach  a resource                                                               
are  based  far  more  on a  guide's  personal  attitude  towards                                                               
guiding than  it is  the amount  of game that  is present  in the                                                               
area.   As far as stewards  of the resource, his  opinion is that                                                               
ADF&G staff and the Board of  Game oversee these issues and spend                                                               
millions of dollars  each year trying to determine  the amount of                                                               
game that  can come out  of a specific  area.  For  example, over                                                               
$500,000 was  spent trying  to determine the  number of  bears on                                                               
the  Kenai  Peninsula and  the  number  was placed  at  somewhere                                                               
between  400 and  600, which  shows how  inexact the  process is.                                                               
While he  would hope he is  either in support of,  or opposed to,                                                               
this bill, his bottom line is  the hope that the legislature will                                                               
maintain some sort of monitoring system  over this if the bill is                                                               
passed and DNR goes forward with the program.                                                                                   
                                                                                                                                
4:09:40 PM                                                                                                                    
                                                                                                                                
VIRGIL  UMPHENOUR,  Master  Guide  158, testified  in  regard  to                                                               
paragraph (c),  page 3, lines 12-19,  of Version U.   He said one                                                               
of the guide use areas he  operates in has five landowners inside                                                               
it:    a state  township,  BLM  land, Koyukuk  National  Wildlife                                                               
Refuge  land, Doyon  regional corporation  land,  and village  of                                                               
Huslia land.   He currently has three permits for  that guide use                                                               
area, including  a permit  from DNR  for which  he pays  $1,000 a                                                               
year.   Because all three  of his  guide use areas  have multiple                                                               
landowners, he  must have  multiple permits  to operate  in those                                                               
guide use  areas.  He stated  he is glad to  see the transporters                                                               
included in [Version U].                                                                                                        
                                                                                                                                
MR. UMPHENOUR  said he has  been involved in hunting  and fishing                                                               
politics for  years.  He  is currently chairman of  the Fairbanks                                                               
Fish & Game Advisory Committee.   He has spent eight years on the                                                               
Board  of Fisheries  and leaves  tomorrow for  Whitehorse, Yukon,                                                               
for seven  days of  salmon treaty  meetings.  A  lot of  time has                                                               
been spent  on this, he  noted; he  has provided comments  to DNR                                                               
and  the  department has  made  many  changes.   Originally,  the                                                               
proposal was  totally unacceptable,  but it  is getting  close to                                                               
acceptable  now.   He said  he would  like to  see paragraph  (c)                                                               
changed so  that if a person  has two federal concessions  plus a                                                               
state concession  inside one state  guide use area, that  that is                                                               
not counted "as all three of them."                                                                                             
                                                                                                                                
4:12:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON inquired how  much Mr. Umphenour pays in                                                               
total for all of his permits.                                                                                                   
                                                                                                                                
MR. UMPHENOUR  replied he  pays the  state $1,000  a year  plus a                                                               
client day  use fee  of $3 per  client per day.   For  his refuge                                                               
permit he pays the U.S. Fish  and Wildlife Service $13 per client                                                               
use day.   For BLM he pays 3  percent of the gross.   For some of                                                               
his Native  corporation permits he  pays a flat $500  per client.                                                               
So, for  about 20 clients  a year, he pays  a total of  $7,000 or                                                               
$8,000 in fees per year.                                                                                                        
                                                                                                                                
4:13:27 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE closed public testimony [and held over HB 158].                                                                  

Document Name Date/Time Subjects
HRES CSHB158 Tarr Amendment A.5.pdf HRES 3/22/2013 1:00:00 PM
HB 158
HRES HB158 Letter Packet 10.pdf HRES 3/22/2013 1:00:00 PM
HB 158
CSSB 21 SFIN Sectional for HRES 03 22 2013 .pdf HRES 3/22/2013 1:00:00 PM
SB 21
SB0021D.pdf HRES 3/22/2013 1:00:00 PM
SB 21
SB0021-7-2-031813-REV-Y.pdf HRES 3/22/2013 1:00:00 PM
SB 21
SB021CS(FIN)amS-DNR-DOG-3-22-13.pdf HRES 3/22/2013 1:00:00 PM
SB 21
SB021CS(FIN)amS-DOR-TAX-03-21-13.pdf HRES 3/22/2013 1:00:00 PM
SB 21
HRES SB21 DNR - GRE.pdf HRES 3/22/2013 1:00:00 PM
SB 21
Oil Tax Provisions Comparison 03222013 Final.pdf HRES 3/22/2013 1:00:00 PM