Legislature(1999 - 2000)

03/17/1999 03:10 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
            SB 68-COOPERATION WITH FEDERAL AGENCIES                                                                             
                                                                                                                                
                                                                                                                                
CHAIRMAN HALFORD announced SB 68 to be up for consideration.                                                                    
                                                                                                                                
MR. BRETT HUBER, Aide to Senator Halford, said the intent of SB 68                                                              
is clear.  If the federal government takes action to preempt our                                                                
state's authority to manage our fish and game resources, they need                                                              
to pay the bill.  Anything less is simply an unfunded federal                                                                   
mandate.  SB 68 does not prohibit cooperation with federal                                                                      
agencies.  It merely requires that when federal actions restrict                                                                
state management of fish and game resources, the State will be                                                                  
reimbursed for any action taken that aides in the preemptive                                                                    
effort.                                                                                                                         
                                                                                                                                
The determination of what actions constitute a restriction of state                                                             
management and what costs should be appropriately allocated between                                                             
the state and federal agencies is left, in a great degree, to the                                                               
discretion of the commissioner of ADF&G.  In reviewing fiscal notes                                                             
prepared for the original version of the bill, the Department                                                                   
appeared to have misinterpreted the intent in regard to the impact                                                              
on current management programs funded with Wallop-Breaux,                                                                       
Pitman/Robertson, and Dingle/Johnson monies.  The bill was never                                                                
intended to preclude the continued utilization of those federal                                                                 
dollars or their compliance with associated reporting requirements.                                                             
In those cases the federal government is paying their way.  When                                                                
and if programs using federal aid dollars come into conflict,                                                                   
programs can always be redirected to areas without preemption                                                                   
conflicts and where Alaskans would benefit from a more aggressive                                                               
management program.  In order to clarify the bill's intent and to                                                               
provide a additional direction to the Department, Mr. Huber                                                                     
presented the committee with a proposed committee substitute,                                                                   
LSO351\G.                                                                                                                       
                                                                                                                                
MR. HUBER continued saying that language in AS 16.05.145(a) further                                                             
clarifies that the federal reimbursement required in instances                                                                  
where state management is restricted is limited to the additional                                                               
costs incurred by the state to cooperate with the federal program.                                                              
In addition, corresponding references in the reporting requirements                                                             
in Subsections (b) and the delineation of the related costs, the                                                                
commissioner should consider and Subsection (c) have also been                                                                  
changed to reflect the clarified intent.                                                                                        
                                                                                                                                
The committee substitute also adds a new Subsection (d) which                                                                   
provides the commissioner broad direction in determining the                                                                    
federal expenditures of state funds.  It directs the commissioner                                                               
to prorate the share in proportion to the extent the federal                                                                    
program restricts state management of the resource for which the                                                                
funds have been expended.                                                                                                       
                                                                                                                                
MR. HUBER concluded that congress and the federal courts have made                                                              
it clear that states shouldn't be faced with bearing the brunt of                                                               
unfunded federal mandates.  During this period of severe state                                                                  
budget constraints, it's important the federal government pays its                                                              
fair share, especially when it's their intent to preempt                                                                        
traditional management of state resources.  Anything less is simply                                                             
an unfunded federal mandate.                                                                                                    
                                                                                                                                
SENATOR MACKIE moved to adopt the committee substitute dated                                                                    
3/12/99G\Utermohle.  There were no objections and it was so                                                                     
ordered.                                                                                                                        
                                                                                                                                
Number 490                                                                                                                      
                                                                                                                                
MR. GERON BRUCE, Legislative Liaison, ADF&G, said they have looked                                                              
at the committee substitute and their comments apply to it.  The                                                                
sweep of SB 68 is so broad they can't be certain which fish and                                                                 
wildlife management programs will be implicated.  It goes far                                                                   
beyond the issue of dual management of subsistence.  Obvious                                                                    
examples of programs likely to be impacted include the Pacific                                                                  
Salmon Treaty, State/Federal cooperation, and interaction in the                                                                
management of migratory waterfowl, pacific cod, Bering Sea crab,                                                                
scallops, and rock fish.  In each of these instances federal rules                                                              
limit or restrict how the State manages certain of its resources.                                                               
In some cases the federal government has provided funding in                                                                    
recognition of the impact federal rules have on the State and in                                                                
other instances they don't provide funding.                                                                                     
                                                                                                                                
Even in instances where federal funding is provided, they never                                                                 
cover the full cost to the State as required by SB 68.  We commit                                                               
state dollars to these programs because of the benefits accrued to                                                              
Alaskans.  In all of the above fish and wildlife management                                                                     
programs, part of them would be prohibited from cooperating with                                                                
the federal government, because of they don't pay the full cost for                                                             
State cooperation.                                                                                                              
                                                                                                                                
MR. BRUCE said no one can foresee the complete picture as it might                                                              
play out and this is one of their concerns with SB 68.  A few                                                                   
examples will illustrate the kinds of consequences that can be                                                                  
expected.  If the State of Alaska refused to cooperate with the                                                                 
federal government in the implementation with the terms and                                                                     
conditions of the Pacific Salmon Treaty, it would probably result                                                               
in the preemption of management of several fisheries in Southeast                                                               
Alaska.  This includes our recreational and commercial chinook                                                                  
salmon fisheries, our boundary area sockeye, pink, chum, and coho                                                               
fisheries, and the Transboundary fisheries off the Stikine, Taku,                                                               
and Alsek Rivers.                                                                                                               
                                                                                                                                
Similar consequences could also befall the Alaskan fisheries                                                                    
harvest in the Yukon River chinook and chum salmon.  He said Mr.                                                                
Regelin would have examples relating to wildlife.  Sharing                                                                      
management responsibilities with the federal government can be                                                                  
problematic for the federal government, but it can also bring                                                                   
benefits to our State.  For example, by cooperating with federal                                                                
managers and operating under the Magnuson/Stevens Act, the State                                                                
has been able to generate significant new economic opportunity in                                                               
groundfish and crab fisheries.  The Community Development Quota                                                                 
Program was a result of state/federal cooperation.                                                                              
                                                                                                                                
Number 540                                                                                                                      
                                                                                                                                
CHAIRMAN HALFORD asked him how the unfunded mandate is determined.                                                              
Who decides which percentage should be federal and which should be                                                              
state.                                                                                                                          
                                                                                                                                
MR. BRUCE said he thought the committee substitute leaves it to the                                                             
discretion of the commissioner.                                                                                                 
                                                                                                                                
CHAIRMAN HALFORD commented that the commissioner of ADF&G decides                                                               
if the State is getting its fair share of the co-management effort                                                              
and asked why the commissioner would decide against himself in                                                                  
determining that the State is not getting its fair share of federal                                                             
dollars.                                                                                                                        
                                                                                                                                
MR. BRUCE said he didn't really understand the question.                                                                        
                                                                                                                                
CHAIRMAN HALFORD explained that there is co-management and all the                                                              
comanagement agreements are fine as long as the State is getting                                                                
it's money's worth.  The person who decides that is the                                                                         
commissioner of ADF&G.                                                                                                          
                                                                                                                                
MR. BRUCE responded that it would be a judgement call and different                                                             
people would call it in different ways.  Any call would be certain                                                              
to be second-guessed by a number of people.  The federal government                                                             
might also have a different opinion. The consequence of this is                                                                 
that the necessary relationship between these two governments                                                                   
breaks down and there's rupture that could come back and harm                                                                   
Alaskans who are involved in fisheries harvesting those resources                                                               
and we could have federal preemption.                                                                                           
                                                                                                                                
He continued saying examples of federal laws that restrict our                                                                  
management of fish and game currently on the books are the Pacific                                                              
Salmon Treaty, the Migratory Bird Treaty, the Marine Mammal                                                                     
Protection Act, the Endangered Species Act, the Magnuson/Stevens                                                                
Fisheries Conservation Act, and ANILCA.                                                                                         
                                                                                                                                
As the on-the-ground managers of fish and wildlife, the Department                                                              
must look for practical ways to manage these resources for the                                                                  
maximum benefit of Alaskans, MR. BRUCE said.  One of the ways to                                                                
minimize the detrimental impacts of dual management is to work with                                                             
federal managers in an attempt, given our divergent interests,                                                                  
using the process where we can attempt to persuade and influence                                                                
the federal program managers to be responsive to the rights, the                                                                
desires and the values of Alaskans.  They are concerned that SB 68                                                              
will preclude the Department in many instances from availing                                                                    
themselves of that ability, because there won't be agreement on                                                                 
what's the appropriate share.                                                                                                   
                                                                                                                                
CHAIRMAN HALFORD tried to clarify that you can't spend more than                                                                
you get value for and you get to decide if you get value for it.                                                                
                                                                                                                                
MR. BRUCE asked if the bill also provides if the feds are not                                                                   
paying for those programs, we can't cooperate with them.                                                                        
                                                                                                                                
CHAIRMAN HALFORD responded after the Department makes that                                                                      
determination.                                                                                                                  
                                                                                                                                
MR. BRUCE said that the feds could have a different estimate of                                                                 
what they should pay and if that can't be resolved, we are in a                                                                 
situation where this bill would prohibit us from cooperating with                                                               
them.  That's their concern.                                                                                                    
                                                                                                                                
SENATOR MACKIE said that he was concerned that it won't effect just                                                             
hunting and sportfishing, but commercial fisheries, as well.  He                                                                
asked what effect if would have on participants in the commercial                                                               
fisheries.                                                                                                                      
                                                                                                                                
MR. BRUCE answered that their concern is that it could lead to                                                                  
federal preemption of the management of those fisheries or the                                                                  
elimination of the State to manage those fisheries under a federal                                                              
umbrella.  In the case of the Pacific cod fishery, for example,                                                                 
which exists in the Kodiak area, that is actually a fishery in                                                                  
which the State through the Council process, has persuaded the                                                                  
federal government to allocate a portion of the Pacific cod catch                                                               
that is typically taken in the offshore fishery to the inshore                                                                  
fishery.  The assessment for the biomass of the cod is done totally                                                             
by the federal government.  He thought that reasonable people could                                                             
argue about who is paying what fair share of the cost of managing                                                               
that fishery.  The Department does not want to get into that kind                                                               
of dispute.  The program is working well and providing significant                                                              
benefits to Alaskan fishermen.                                                                                                  
                                                                                                                                
TAPE 99-13, SIDE B                                                                                                              
Number 590                                                                                                                      
                                                                                                                                
CHAIRMAN HALFORD responded that SB 68 doesn't change any of that.                                                               
The Commissioner can reduce his level of participation to the level                                                             
that he thinks he's getting his monies' worth and still be                                                                      
cooperative.  He hoped the provisions of this bill are things that                                                              
the State does every time it deals with a federal agency.                                                                       
                                                                                                                                
MR. BRUCE said the Department always tries to get the best deal                                                                 
possible.  Most deals are long-term and the Division sometimes goes                                                             
forward feeling they didn't get the best deal maybe in year number                                                              
one, but they work on improving that in the following years.  He                                                                
explained that it's not possible to reach total agreement between                                                               
parties that have different views of the world about the relative                                                               
shares of the financial burden that each should carry.                                                                          
                                                                                                                                
MR. BRUCE informed the committee that we get a lot funding from the                                                             
federal government for our fish and wildlife management, almost as                                                              
much as our general fund appropriation.  We don't account for it in                                                             
the way SB 68 has them account for it, however.                                                                                 
                                                                                                                                
SENATOR MACKIE asked Senator Halford to explain Subsection (a)                                                                  
where it mentions, "A state agency may not cooperate with a federal                                                             
agency in the implementation of a federal program that restricts                                                                
the state management of fish or game in the State unless the                                                                    
commissioner of ADF&G finds in writing that the federal agency has                                                              
entered into an agreement to reimburse the state for the full cost                                                              
of cooperation." and how it relates to the inshore cod fishery in                                                               
Kodiak.  He asked if they wouldn't be able to have the quota that                                                               
was given by the federal agency to our Board of Fisheries to manage                                                             
unless the North Pacific Council is willing to reimburse the State                                                              
for the management costs.                                                                                                       
                                                                                                                                
CHAIRMAN HALFORD answered that every one of those things are                                                                    
totally in reverse, because the cod is not a state authority.  It's                                                             
an authority granted back from the federal government to the State.                                                             
SB 68 doesn't apply at all to that situation.                                                                                   
                                                                                                                                
SENATOR MACKIE responded that it is within three miles of the                                                                   
State.                                                                                                                          
                                                                                                                                
MR. BRUCE clarified that it is an inshore instate fishery.  Four or                                                             
five years ago it was a completely offshore fishery.  Through the                                                               
North Pacific Fisheries Management Council we sat down and reached                                                              
an agreement where a portion of that fishing was allocated to an                                                                
inshore fishery occurring within State waters.                                                                                  
                                                                                                                                
CHAIRMAN HALFORD asked if we are getting our money's worth.                                                                     
                                                                                                                                
MR. BRUCE answered that he thought we were doing very well in that                                                              
program.                                                                                                                        
                                                                                                                                
SENATOR MACKIE said his question was the reimbursement, because he                                                              
was sure there were costs involved dealing with the Board of                                                                    
Fisheries for promulgating regulations to allow for that; there are                                                             
the ADF&G personnel who are managing that fishery and enforcement                                                               
personnel.  He didn't know that the feds were giving us any money                                                               
for that; but we get the quota and manage the fishery.  This is a                                                               
change from before.  He thought we would have problems asking for                                                               
money in addition to the quota in this case.                                                                                    
                                                                                                                                
Number 530                                                                                                                      
                                                                                                                                
SENATOR TAYLOR asked how we lost jurisdiction of our cod within the                                                             
three mile zone in the first place.                                                                                             
                                                                                                                                
MR. BRUCE explained that we didn't lose jurisdiction over them, but                                                             
the harvest that was being taken in the offshore waters was taking                                                              
the entire allowable harvest.  So instituting a state fishery                                                                   
unilaterally, we would have started to deplete the resource and we                                                              
would not have had a sustainable fishery.  We had to reach an                                                                   
agreement with the federal managers that they would reduce the                                                                  
federal take, so that some portion of the total allowable catch                                                                 
would be available to take in state waters.  It's not a                                                                         
jurisdictional question, but rather a question of to what catch                                                                 
locations do you allocate the available harvest.  We were                                                                       
successful in getting some allocated to state waters.                                                                           
                                                                                                                                
SENATOR TAYLOR asked if it was like IFQ.                                                                                        
                                                                                                                                
MR. BRUCE responded that it was not; it's an open access issue.                                                                 
                                                                                                                                
CHAIRMAN HALFORD said the answer to the allocation question is in                                                               
(d) and the way it's computed.                                                                                                  
                                                                                                                                
SENATOR MACKIE said he understood where the chairman wanted to go                                                               
with this and agreed with the intent, but he feared what could be                                                               
eliminated as a result of that.  He said the Kodiak cod fishery is                                                              
a very good program.                                                                                                            
                                                                                                                                
MR. BRUCE said he wanted to highlight the fact that the bill is                                                                 
very broad reaching and he thought the motivation was from                                                                      
subsistence management, but it touches a number of issues and he                                                                
didn't want unintended consequences.                                                                                            
                                                                                                                                
CHAIRMAN HALFORD asked if Mr. Bruce thought the National Park                                                                   
Service and the U.S. Fish and Wildlife Service were paying their                                                                
own way under the Memorandums of Understandings and Joint                                                                       
Operations Agreements.                                                                                                          
                                                                                                                                
Number 495                                                                                                                      
                                                                                                                                
MR. REGELIN answered that the State operates under a master                                                                     
memorandum of understanding with the federal agencies, but there is                                                             
no written cooperative agreement about who pays for what.                                                                       
                                                                                                                                
CHAIRMAN HALFORD asked if he was satisfied with what we get versus                                                              
what we give under that memorandum.                                                                                             
                                                                                                                                
MR. REGELIN replied said he doesn't put their cooperative work in                                                               
the terms of the memorandum and he thought the feds paid their fair                                                             
share with cooperative work.                                                                                                    
                                                                                                                                
CHAIRMAN HALFORD asked if the feds followed what was written in the                                                             
Memorandum of Understanding.                                                                                                    
                                                                                                                                
MR. REGELIN said he would have to look at the detail of the                                                                     
memorandum.  He explained that it is a very general agreement.  He                                                              
commented that he interprets SB 68 as saying the State may not                                                                  
cooperate with federal agencies in the implementation of fish and                                                               
game programs that restrict our management authorities unless they                                                              
reimburse us for a "fair share."                                                                                                
                                                                                                                                
CHAIRMAN HALFORD clarified that there are two separate issues.  One                                                             
is we can't cooperate if it restricts us unless the feds pay for                                                                
it.                                                                                                                             
                                                                                                                                
MR. REGELIN continued if they refuse to pay for it, he understands                                                              
that the State is not to continue cooperating.                                                                                  
                                                                                                                                
CHAIRMAN HALFORD asked if he thought it was an absolute and if they                                                             
would cooperate to the level of our fair share and then stop or                                                                 
just not cooperate at all if they don't pay all $10 of the $10 they                                                             
owe; they pay only $9.                                                                                                          
                                                                                                                                
MR. REGELIN replied that he wasn't sure as he just received the                                                                 
committee substitute this morning.                                                                                              
                                                                                                                                
CHAIRMAN HALFORD explained that it was intended for the Department                                                              
to make the determination of the degree to cooperate to the extent                                                              
the feds are willing to fund.                                                                                                   
                                                                                                                                
SENATOR MACKIE asked if it was that way now.                                                                                    
                                                                                                                                
CHAIRMAN HALFORD answered that it wasn't that formal.                                                                           
                                                                                                                                
MR. REGELIN explained the costs the Commissioner would have to look                                                             
at would include the direct costs incurred by ADF&G, the Board of                                                               
Fisheries and Game, the local advisory committees, the Department                                                               
of Law, the Department of Public Safety, the Department of                                                                      
Corrections, and any other agency it might affect.                                                                              
                                                                                                                                
MR. REGELIN informed the committee that the Division of Wildlife                                                                
Conservation is responsible for management on all lands within the                                                              
State including federal lands.  They don't give any consideration                                                               
to land ownership when they are conducting wildlife surveys or                                                                  
recommending seasons or bag limits to the Board.  They conduct no                                                               
surveys or research programs or take any actions at the request of                                                              
any federal agency.  Decisions about which populations to survey                                                                
are based on our needs and those of the Alaska Board of Game.  In                                                               
many instances we and the federal agencies conduct joint censuses                                                               
or joint projects, especially on the large caribou herds and moose                                                              
populations that occupy both State and federal lands, because they                                                              
are so expensive.  Oftentimes we share aircraft and personnel and                                                               
it's not an exchange of funds.  When we work together, the data is                                                              
available to the federal agencies at the time they are completed.                                                               
The feds could use money to restrict State subsistence                                                                          
prerogatives, but we don't know that as we are doing the survey or                                                              
census.                                                                                                                         
                                                                                                                                
State data is made available to the public after they have been                                                                 
summarized and analyzed.  We provided summaries to federal agencies                                                             
and other organizations on a state time line that the Department                                                                
sets.  We don't charge anyone for the data and don't do any special                                                             
analysis for the federal agencies.                                                                                              
                                                                                                                                
CHAIRMAN HALFORD asked if all the Department's data was public.                                                                 
                                                                                                                                
MR. REGELIN explained that there are some statutory limitations on                                                              
locations of certain animals and nest sites.                                                                                    
                                                                                                                                
CHAIRMAN HALFORD asked which statute restricts what is public.                                                                  
                                                                                                                                
MR. BRUCE responded that it is AS 16.05.815.                                                                                    
                                                                                                                                
MR. REGELIN said all of our surveys are partially funded by federal                                                             
money and he didn't know if we had a choice to provide them the                                                                 
data under the Federal Freedom of Information Act and the State                                                                 
Public Records Act.  We attend meetings of the federal regional                                                                 
advisory councils and our headquarter's staff meetings and don't do                                                             
it to help the federal agencies.  We do it to protect the State's                                                               
interests and to ensure the data we have collected are interpreted                                                              
properly.                                                                                                                       
                                                                                                                                
MR. REGELIN said in his mind federal agencies have been pretty                                                                  
willing to pay their portion of the direct costs for surveys and                                                                
inventory, especially if it's collected on their lands.  They may                                                               
be willing to pay more, but he thought it was doubtful that they                                                                
would be willing to pay the indirect costs and more doubtful that                                                               
they would pay for research or for law enforcement or corrections                                                               
activities.  He thought the most likely scenario would be that the                                                              
feds would cease to cooperate with us and close more federal lands                                                              
to everyone but those who qualify under the Federal Subsistence                                                                 
Law.  Residents would then have less opportunity.  In some                                                                      
instances the feds will collect their own data if we don't provide                                                              
it to them.  Then we would end up in front of the Federal                                                                       
Subsistence Board arguing about whose data is correct.                                                                          
                                                                                                                                
MR. REGELIN had a real question about how this might impact our                                                                 
migratory bird program.  We are restricted by federal regulations                                                               
in this program and it could place our waterfowl hunters in                                                                     
jeopardy.  Federal regulations limit the harvest of migratory birds                                                             
to certain levels.  Within this framework the feds provide, the                                                                 
State can only be more restrictive.  He added that we pay for our                                                               
own waterfowl program and they match some of it, but they will not                                                              
pay more.  Now that "additional costs" have been added he would                                                                 
have to think that through.                                                                                                     
                                                                                                                                
MR. REGELIN said he thought the federal government already pays                                                                 
it's fair share.  The overall Department budget is over 30 percent                                                              
federal funds and in his Division gets over 40 percent.  He wasn't                                                              
sure we could do our job without cooperating with the land owner,                                                               
whether private or federal.  He said they are all frustrated with                                                               
the dual system which he thinks has resulted in poor wildlife                                                                   
management in many instances, but he thought this approach would                                                                
just make it worse.                                                                                                             
                                                                                                                                
SENATOR TAYLOR asked if the 30 - 40 percent federal aid coming in                                                               
was from programs that are supported by hunters and fishers.                                                                    
                                                                                                                                
MR. REGELIN replied that for their base budget that's entirely so.                                                              
It comes from federal tax and Exise tax on firearms and ammunition.                                                             
                                                                                                                                
SENATOR TAYLOR commented that it's basically the user group that's                                                              
paying for it and the federal government washes it through to the                                                               
state with significant restrictions.                                                                                            
                                                                                                                                
MR. REGELIN agreed that there were restrictions.                                                                                
                                                                                                                                
SENATOR TAYLOR said according to June 6 - 7, 1996 Washington D.C.                                                               
briefing material put out by the U.S. Fish and Wildlife                                                                         
Service/Department of Interior on Implications of Federal                                                                       
Management of Subsistence Fisheries, page 19, the concluding                                                                    
paragraph indicates that federal managers at that time believed it                                                              
would cost $18 million for the first year and up to $31 million                                                                 
annually thereafter to implement federal subsistence management on                                                              
fisheries in navigable waters in Alaska.  He was told the federal                                                               
government has currently funded their effort at $11 million.  He                                                                
asked who was picking up the difference between the $11 million and                                                             
the $18 million for the first year.  He asked if Mr. Regelin knew                                                               
of anyone talking about the funding up to $30 million.  He said                                                                 
that someone else would have to pick up the cost and that's why he                                                              
didn't want the State personnel cooperating with them unless they                                                               
were forced to.                                                                                                                 
                                                                                                                                
MR. REGELIN responded that those were federal figures and he didn't                                                             
know what they meant when they put them together.  He explained                                                                 
when the State manages a fishery or wildlife resource, we do it for                                                             
all users on all lands, commercial, sport, and subsistence.  We                                                                 
have all the data.  Federal agencies are taking some of that data                                                               
and making decisions on a small aspect of it.                                                                                   
                                                                                                                                
He said the federal government is not requiring us to do anything;                                                              
we collect data anyway.  If we use the data on their lands for                                                                  
wildlife, they are paying most of those costs now.                                                                              
                                                                                                                                
SENATOR TAYLOR asked if they are paying now for subsistence work.                                                               
                                                                                                                                
MR. REGELIN said the State has a contract for them to pay the                                                                   
Subsistence Division for several different projects where they are                                                              
collecting data on subsistence use.  They pay for five months of                                                                
the state liaison person who works with the Federal Subsistence                                                                 
Board.  They don't pay for our costs to attend the federal advisory                                                             
committees.  They might pay, if pushed because the feds think it's                                                              
valuable for the State to be there.  The State thinks it's in our                                                               
own best interests to be there.  We haven't asked for that                                                                      
reimbursement.                                                                                                                  
                                                                                                                                
Number 315                                                                                                                      
                                                                                                                                
MR. CARL ROSIER, former Commissioner of ADF&G, said he had about 40                                                             
years of experience in the management of our fish and game                                                                      
resources in Alaska.  He said these resources are really close to                                                               
his heart and their continued welfare under a good management                                                                   
system is something every Alaskan should be fighting for and yet                                                                
today we find ourselves on the threshold of possibly using another                                                              
portion of the outstanding state management program that has served                                                             
these resources and all the people of the state so well for 40                                                                  
years.                                                                                                                          
                                                                                                                                
This potential loss is through an invasive ill conceived federal                                                                
law that doesn't even contain a sustained yield mandate.  Some                                                                  
provisions of ANILCA call for healthy populations and in some                                                                   
cases, natural and healthy populations, but what these standards                                                                
mean is anyone's guess at the present time.                                                                                     
                                                                                                                                
MR. ROSIER said it seems to him that concepts in SB 68 requiring                                                                
the federal agencies to pay for support services that impinge on                                                                
state management is a reasonable demand.  Since 1959 the State has                                                              
built a capability for fish and wildlife management that has                                                                    
involved hundreds of millions of dollars.  The bulk of the State's                                                              
program has been carried by State general fund dollars.  This is                                                                
especially true for the world class commercial fisheries of our                                                                 
state which are now at risk.                                                                                                    
                                                                                                                                
It is not reasonable to expect free access to the state's system                                                                
without paying for that service and the federal system requires                                                                 
information, data, or analysis that is not in the best interest of                                                              
all users of the resource.  In this information age, nothing comes                                                              
for free and it must always be remembered that the federal mandate                                                              
under ANILCA is one that discriminates against 80 - 90 percent of                                                               
our state's population.  There should be little incentive for the                                                               
state system to be cooperative when the federal agencies seek help                                                              
that negatively impacts state management and many of our residents.                                                             
On the other hand, programs such as Dingle/Johnson, Wallop/Breaux,                                                              
and the PR programs currently carried out by the State are examples                                                             
of state/federal relations that have been a good partnership and we                                                             
must be vigilant that they not become pawns in this federal move to                                                             
interject itself into the management program for a single user                                                                  
group.                                                                                                                          
                                                                                                                                
He believe the basic concept of SB 68 to be good in that the basic                                                              
conflicts between the state and federal system require some                                                                     
sideboards from the legislature on how the state agencies should                                                                
interact with the federal agencies.  ADF&G's mandate is for                                                                     
sustained yield of the resources.  The federal mandate, ANILCA,                                                                 
lacks such a resource mandate and speaks only to providing an                                                                   
allocation to a single user group.                                                                                              
                                                                                                                                
During his stint as commissioner from 1991 - 1995, he consistently                                                              
advocated for what was right for the resources and Alaska's general                                                             
population knowing that the federal system would, in many                                                                       
instances, use our information to allocate resources away from the                                                              
urban population centers of Anchorage, Fairbanks, Juneau, and                                                                   
Ketchikan.  As the federal agencies move into fisheries, the number                                                             
of these actions will, in his mind, undoubtedly increase and                                                                    
legislative direction will be helpful.                                                                                          
                                                                                                                                
ANILCA has imposed tremendous costs on many state programs and the                                                              
reimbursement to the state has been both minimal and intermittent.                                                              
A congressionally authorized annual $5 million slated for state                                                                 
implementation of ANILCA mandates has never materialized.  We all                                                               
know it is frequently a long stretch between what congress                                                                      
authorizes in a bill and what is finally appropriated.  Ongoing                                                                 
litigation carried out by the Department of Law is tied directly to                                                             
the subsistence and ANILCA issue.  One has to consider federal                                                                  
dollars as soft money that frequently have a short life, especially                                                             
those appropriations that lack an organic act to support them.                                                                  
                                                                                                                                
Our experience in the early nineties saw the federal agencies                                                                   
helping to fund the state board system for nearly a half million                                                                
dollars annually.  By FY94, however, those dollars had shrunk to                                                                
under $100,000.  The Federal Board and newly established regional                                                               
councils were in place.  The state system was no longer required                                                                
and funds were withdrawn.  But a strong interest initially in                                                                   
supporting the Subsistence Division was operational and overhead                                                                
costs, the Division was receiving again nearly a half million                                                                   
dollars in FY92, but by FY94 those dollars had been reduced to                                                                  
zero.                                                                                                                           
                                                                                                                                
Specific projects requiring data collection, studies, or analytical                                                             
work on subsistence use and users fared better with the federal                                                                 
dollars leveling off at about $700,000 in FY93.  He didn't think                                                                
federal dollars had increased significantly since then.  Generally,                                                             
though, the federal agencies were obtaining information from the                                                                
management divisions during this period pretty much at no cost                                                                  
while supporting the subsistence and state regulatory systems                                                                   
financially until they could gear up for their own programs.                                                                    
                                                                                                                                
He thought a criticism of this bill could be that it is mean-                                                                   
spirited.  It is not.  This is a business arrangement.  The federal                                                             
agencies today do not hesitate to take administrative costs off the                                                             
top of virtually every federal program.  It's now the cost of doing                                                             
business with the feds.  SB 68 gives the commissioner significant                                                               
latitude in determining what the cost will be of a given piece of                                                               
information or a program will be to the federal government.  It                                                                 
should be remembered, also, that literally hundreds of hours of                                                                 
staff time have gone into preparation of appeals to the Federal                                                                 
Subsistence Board for what would be considered bad resource                                                                     
decisions.  Despite these efforts he didn't recall every getting a                                                              
positive reversal during his time as commissioner and he questioned                                                             
whether his predecessor had been much more successful.                                                                          
Relationships between our state professionals and some of the                                                                   
regional councils have been reported by ADF&G staff to be "down-                                                                
right antagonistic and in some cases personally insulting."                                                                     
                                                                                                                                
The state agency people need the legislature's support in this area                                                             
and he believes SB 68 is a step in the right direction.                                                                         
                                                                                                                                
SENATOR MACKIE asked how he thought situations like the Kodiak cod                                                              
fishery would be handled and to comment on Mr. Regelin's feeling                                                                
that the federal government already pays its way, as Mr. Regelin                                                                
was one of Mr. Rosier's directors when he was commissioner.                                                                     
                                                                                                                                
MR. ROSIER responded that he was part of the Kodiak cod fishery                                                                 
process and it was a jurisdiction issue in which the State was                                                                  
going to establish its right to manage at least some of those                                                                   
species inshore.  Most of the fishery was offshore and under the                                                                
Magnuson Act the management plan calls for the management agency to                                                             
be where the bulk of the fish is actually being caught.  It was a                                                               
situation where the offshore fleet was not necessarily coming in                                                                
and there were large stocks of cod that were not being touched.                                                                 
They were part of the biomass.  The State saw the opportunity, but                                                              
there was a reluctance on the part of the federal government to                                                                 
recognize the fish were there and weren't being harvested.  There                                                               
was a small Alaskan fleet that wanted to harvest them.  As the                                                                  
federal government was moving towards an IFQ system, the small boat                                                             
owners found that they might not qualify for any of the groundfish                                                              
species offshore.  Under those circumstances, the State was very                                                                
interested in getting some fisheries going in state waters.  It was                                                             
the Board of Fisheries that forced the issue and set up the first                                                               
season.  The Council then said they would make an allocation.                                                                   
                                                                                                                                
SENATOR MACKIE asked if he thought it had an adverse affect on that                                                             
kind of situation, did he think it should be clarified in the                                                                   
legislation.  He would hate to think that benefits to communities                                                               
would not be adequate rationale for having a fishery like that.                                                                 
                                                                                                                                
MR. ROSIER agreed with him.   He thought there would always be                                                                  
situations to negotiate, but the commissioner has the authority to                                                              
make that determination in SB 68.  He also thought the State was                                                                
getting its money's worth on those inshore fisheries.                                                                           
                                                                                                                                
SENATOR MACKIE asked Mr. Rosier if he disagreed with Mr. Regelin's                                                              
comments about the wildlife understandings and agreements they have                                                             
right now.                                                                                                                      
                                                                                                                                
MR. ROSIER answered that he thought the federal government had                                                                  
administered the funds that had been collected from the sale of                                                                 
sporting arms and ammunition and fishing gear pretty well.  Those                                                               
funds have been extremely valuable to the State.  He didn't,                                                                    
however, see those funds being jeopardized by this legislation.                                                                 
The commissioner has the authority under this legislation to do the                                                             
financial analysis which he didn't think had to be that detailed or                                                             
involved.  Generally, the agencies have a good feel for what a                                                                  
program is going to cost.                                                                                                       
                                                                                                                                
CHAIRMAN HALFORD commented that some people in ADF&G seem almost                                                                
intent on working for or cooperating with federal preemptive                                                                    
management and he asked why that was.                                                                                           
                                                                                                                                
MR. ROSIER said there were a lot of new people with a lot of                                                                    
different ideas.  Some people think the feds can do a better job,                                                               
but they haven't gone through the pain and anguish of seeing the                                                                
state program through its infancy and seeing how these resources                                                                
have rebounded through state management.                                                                                        
                                                                                                                                
CHAIRMAN HALFORD asked what his experience was with the federal                                                                 
government following the master Memorandum of Understanding with                                                                
regard to Park Service or Fish and Wildlife Service.                                                                            
                                                                                                                                
MR. ROSIER said the Memorandum is fairly specific in some areas and                                                             
one of the things that grates on him is from the Memorandum itself                                                              
says they agree to use the state's regulatory process to the                                                                    
maximum extent possible allowed by federal law in developing new or                                                             
modifying existing federal regulations governing or effecting the                                                               
taking of fish or wildlife on service lands in Alaska.  That went                                                               
out the window a long time ago.                                                                                                 
                                                                                                                                
SENATOR HALFORD noted that the committee was running over it's time                                                             
limit and said they would continue the discussion at another time.                                                              

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