Legislature(2013 - 2014)BUTROVICH 205

04/02/2014 03:30 PM Senate RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 161 AUCTIONS FOR BIG GAME HARVEST PERMITS TELECONFERENCED
Moved SCS CSHB 161(RES) Out of Committee
+= HJR 30 IZEMBEK LAND EXCHANGE TELECONFERENCED
Moved Out of Committee 3/31/14
+= HB 268 BIG BULL MOOSE DERBIES; SNOW TOWN ICE CL. TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
          HB 161-AUCTIONS FOR BIG GAME HARVEST PERMITS                                                                      
                                                                                                                                
CHAIR GIESSEL announced  HB 161 to be up  for consideration [CSHB
161(RES) was before the committee].                                                                                             
                                                                                                                                
SENATOR MCGUIRE  moved to  adopt SCS  CSHB 161(RES),  version 28-                                                               
LS0530\I. There were no objections and it was so ordered.                                                                       
                                                                                                                                
3:32:58 PM                                                                                                                    
SENATOR DYSON joined the committee.                                                                                             
                                                                                                                                
LINDSAY  WILLIAMS,  staff  to  Senator  Giessel  and  the  Senate                                                               
Resources  Committee, Alaska  State Legislature,  Juneau, Alaska,                                                               
explained the committee substitute  (CS) makes three changes. The                                                               
first is  on page  1, line  8, where the  words "one  Dall sheep"                                                               
were removed from section 1 and  inserted into section 2. Page 2,                                                               
line  2, now  reads "three  harvest  permits each  year for  Dall                                                               
sheep". It previously read two harvest permits.                                                                                 
                                                                                                                                
The second change  is on page 2, line  23, where "notwithstanding                                                               
any  other  provision  of  law   "a"  was  removed  and  "A"  was                                                               
reinserted.                                                                                                                     
                                                                                                                                
The final  change is on page  2, line 30. The  phrase "conditions                                                               
set by  the commissioner"  was removed  and "applicable  law" was                                                               
inserted.                                                                                                                       
                                                                                                                                
3:34:31 PM                                                                                                                    
REPRESENTATIVE   GATTIS,  sponsor   of  HB   161,  Alaska   State                                                               
Legislature, Juneau,  Alaska, said her staff,  Reid Harris, would                                                               
explain the reasons for the CS and she would follow up.                                                                         
                                                                                                                                
3:35:12 PM                                                                                                                    
REID  HARRIS,  staff  to   Representative  Gattis,  Alaska  State                                                               
Legislature, Juneau, Alaska, explained  that the sheep permit was                                                               
moved  from section  1  to section  2 mainly  because  now it  is                                                               
eligible  for  Pitman  Robertson   matching  funds,  which  would                                                               
hopefully  provide  more  money  to the  department  to  use  for                                                               
conservation, protection, and education needs.                                                                                  
                                                                                                                                
The second change on page  2, line 23, where "notwithstanding any                                                               
other provision of law, a" is  legal language that says this bill                                                               
will  supersede  any  other  provisions   that  were  in  statute                                                               
regarding  this issue.  Removing  that language  means the  other                                                               
statutes would  apply before  this bill.  There was  concern that                                                               
this would create an environment  of special hunts, closed hunts,                                                               
out-of-season hunts or possibly the  use of helicopters. The same                                                               
thing with conditions  set by the commissioner  being removed and                                                               
applicable  law  being  reinserted.  It  has  been  said  by  the                                                               
department  that  both  Resource  Committees  said  they  had  no                                                               
intention of doing that.                                                                                                        
                                                                                                                                
SENATOR DYSON  said he  heard some discussion  about how  much of                                                               
the money raised should go to  the nonprofits and maybe a portion                                                               
should go to ADF&G or their efforts.                                                                                            
                                                                                                                                
MR. HARRIS  said section 1 of  the bill where 100  percent of the                                                               
tag proceed  goes to nonprofits  has two different  theories. The                                                               
nonprofits that are able to use these  tags can do a lot with it.                                                               
They can't  keep any of  it; it has to  be spent. Section  2 that                                                               
raised the percentage from 10 to  30 percent does the same thing.                                                               
In current statute, the nonprofit can  keep 10 percent and use it                                                               
for anything  they want as long  as it isn't for  political gain,                                                               
lobbying and things  like that. In the CS they  retain 30 percent                                                               
but  they all  have to  be spent  on projects  within the  state,                                                               
according  to the  department. They  can keep  a nominal  fee for                                                               
conducting the auction.                                                                                                         
                                                                                                                                
SENATOR DYSON said  he heard that some have  raised over $100,000                                                               
and asked how much money gets raised typically.                                                                                 
                                                                                                                                
MR.  HARRIS  said  an  ADF&G  financial  breakdown  indicated  an                                                               
average of $50,000 to $60,000. A  2013 figure jumps out where the                                                               
Wild Sheep Foundation sold a Dall sheep permit for $180,000.                                                                    
                                                                                                                                
CHAIR GIESSEL opened public testimony.                                                                                          
                                                                                                                                
3:40:10 PM                                                                                                                    
WAYNE HEIMER,  representing himself,  Fairbanks, Alaska,  said he                                                               
opposed  passing  HB  161  out  of committee  unless  it  gets  a                                                               
Judiciary Committee  referral. He  said that he  had 25  years in                                                               
with the ADF&G primarily in Dall  sheep and had been working with                                                               
Dall sheep special permits through  the Wild Sheep Foundation. He                                                               
said that  HB 161 proposes  to significantly increase  the longer                                                               
term future of  the Wildlife Conservation budget  by turning pre-                                                               
hunters  into dedicated  hunter conservationists.  The assumption                                                               
that this will work over  the long haul and correlated assumption                                                               
that  the  decline in  hunting  license  sales  can be  fixed  by                                                               
spending  money on  education  seems  to be  based  more on  hope                                                               
rather than actual data.                                                                                                        
                                                                                                                                
He  was  gratified that  the  Dall  sheep  that was  formerly  in                                                               
section  1 was  moved  to  where it  will  be  matched by  Pitman                                                               
Robertson funds, but he was  still concerned about adding a third                                                               
Dall  sheep permit  because it  may dilute  the market,  which is                                                               
extremely volatile  and based almost entirely  on the presumption                                                               
of an  advantage that the  purchaser might  gain. If there  is no                                                               
advantage the permits don't sell well.  He had seen the bid price                                                               
for the most  desirable of Dall sheep permits  vary from $200,000                                                               
to $20,000. Right now the Chugach  permit is doing very well, but                                                               
he did not  anticipate being able to maintain  that value because                                                               
of the biology that seems to be happening there.                                                                                
                                                                                                                                
3:42:34 PM                                                                                                                    
Additionally,  there seem  to be  questions  about statutory  and                                                               
constitutional acceptability  of HB  161. The bill's  backers say                                                               
these questions could  not have arisen because  they were careful                                                               
during drafting.  Nevertheless, since  the bill has  been written                                                               
they have arisen and they  should be addressed, perhaps through a                                                               
Judiciary Committee review.                                                                                                     
                                                                                                                                
Finally, Mr. Heimer said, he  was a little uncomfortable with the                                                               
ADF&G determining  how NGOs  spend the  money generated  from the                                                               
permits. NGOs  are inherently special interests  and he preferred                                                               
a  separation of  funding to  preserve the  sometimes adversarial                                                               
but helpful relationship between  NGOs and their managing agency.                                                               
While  confrontation  may  be unpleasant,  service  bureaucracies                                                               
like ADF&G  need the  challenge to see  beyond their  status quo.                                                               
NGOs  have always  served  this role  and he  wanted  that to  be                                                               
preserved.                                                                                                                      
                                                                                                                                
3:43:53 PM                                                                                                                    
SENATOR  DYSON  appreciated  his  weighing in  and  said  he  had                                                               
received  comments from  a  lot of  Alaskans  who were  concerned                                                               
about less game being available for Alaskans.                                                                                   
                                                                                                                                
MR. HEIMER  responded that  the addition of  one more  Dall sheep                                                               
permit will  not materially affect anyone's  opportunity, however                                                               
a permit without a home isn't  worth very much. Anybody who might                                                               
buy this  permit can  currently go almost  anywhere in  Alaska to                                                               
hunt sheep and  the only thing to give the  sheep permit value is                                                               
the impression  that there is a  spectacular advantage associated                                                               
with it.                                                                                                                        
                                                                                                                                
3:45:00 PM                                                                                                                    
KAREN GORDON, representing  herself, Fairbanks, Alaska, suggested                                                               
that HB  161 be killed or  sent to the Finance  Committee for due                                                               
diligent  consideration because  of  its  impossible zero  dollar                                                               
fiscal note.  She said that  she lives in Fairbanks  and recently                                                               
retired from the state as  an administrative officer after almost                                                               
30  years with  the  ADF&G and  DNR where  she  often dealt  with                                                               
contracts and MOUs.                                                                                                             
                                                                                                                                
She said  that HB 161  is rife with  problems that make  the bill                                                               
indefensible.  Number  one,  it's   not  even  necessary  because                                                               
nothing is  actually broken. The  state has made over  $4 million                                                               
via permit  sales through the  Wild Sheep Foundation  alone. Dall                                                               
sheep are  the big  money ticket and  three permits  could dilute                                                               
the  exclusivity of  the market  and  that would  drive down  the                                                               
price.                                                                                                                          
                                                                                                                                
Number  two,  it violates  state  procurement  laws by  funneling                                                               
money earned  from common use resources  to a singular NGO  via a                                                               
sole  source  contract  which  yields a  smaller  return  to  the                                                               
department than  is now realized  through a  competitive process.                                                               
And three,  the zero dollar  fiscal note is  unrealistic. Writing                                                               
one  or more  MOUs allocating  42 permits  which are  presumed in                                                               
this  bill, assessing  and approving  the involved  NGOs intended                                                               
operating  plan,  accounting  for funding  splits,  auditing  the                                                               
backup documentation  for the expenditures necessary  for each of                                                               
the 42  permits, completing follow-up evaluations  on 42 permits,                                                               
etc. isn't going  to be without costs. From  her experience, just                                                               
one can be very time consuming,  but 42 of them cannot be managed                                                               
for nothing.                                                                                                                    
                                                                                                                                
MS.  GORDON  said  she  preferred that  this  bill  were  killed,                                                               
because nothing is broken and  benefits to Alaskans are ambiguous                                                               
at  best and  the amount  returned to  the department  is reduced                                                               
significantly.  If it  must survive,  it  really needs  to go  to                                                               
Senate Finance, because the zero fiscal note is unrealistic.                                                                    
                                                                                                                                
3:47:51 PM                                                                                                                    
RON SOMERVILLE, lobbyist,  Territorial Sportsmen, Juneau, Alaska,                                                               
said he was director of the  Division of Wildlife when this issue                                                               
came  up  originally;  the  purpose was  to  generate  money  for                                                               
Wildlife Safeguard  Program. It  then morphed into  getting money                                                               
for the  Fish and Game  Fund to  match with federal  dollars. Now                                                               
it's  going to  more  support  for the  NGOs.  While they  didn't                                                               
oppose the  many programs, the  question is the oversight  of the                                                               
legislature.  If  you  give  100   percent  of  something  to  an                                                               
organization, you're  saying that money  will be controlled  by a                                                               
memorandum of agreement (MOA). He  wanted the legislature to have                                                               
some oversight in this process; plus  having as much going to the                                                               
Fish  and Game  Fund as  possible  is important,  because of  the                                                               
matching 3:1 ratio with federal dollars.                                                                                        
                                                                                                                                
MR. SOMERVILLE said  that the division needs  to increase license                                                               
fees. He explained  that this program generates  about $100,000 a                                                               
year, a pittance in terms of  what is needed to match the federal                                                               
money, and this is not a solution.                                                                                              
                                                                                                                                
MR. SOMERVILLE  stated, "You  gotta look  at the  whole picture."                                                               
The  board  had  to  essentially  stop  non-resident  hunting  in                                                               
Mulchatna  because   no  caribou  were  left   there.  There  are                                                               
conflicts between  the subsistence  and non-subsistence  users in                                                               
Nelchina; non-residents  are being pushed out.  But residents are                                                               
being affected similarly, too.                                                                                                  
                                                                                                                                
MR. SOMERVILLE  said resident hunting opportunities  in the state                                                               
are diminishing every  year and nothing in HB  161 requires these                                                               
permits to  come from  the non-resident pool,  yet 47  percent of                                                               
the permits  are sold outside  of the  state. Even though  it's a                                                               
small percentage, they add up.                                                                                                  
                                                                                                                                
He summarized that they appreciated  the sponsor moving the sheep                                                               
permit into  section 2, but  they prefer  that the bison  go into                                                               
section  2, as  well. The  existing agreements  have very  little                                                               
control over what happens to the money going to non-profits.                                                                    
                                                                                                                                
3:53:01 PM                                                                                                                    
AL BARRETTE,  representing himself, Fairbanks, Alaska,  said that                                                               
mainly the NGOs  testified at the last meeting and  the one thing                                                               
that stood out in  his mind is that none of  them were asking for                                                               
money or more opportunity to  raise money. They were just touting                                                               
how good their programs were working with the monies they have.                                                                 
                                                                                                                                
Second, he  pointed out  that the department  has been  trying to                                                               
keep this bill alive to raise this  money, yet when he was at the                                                               
last  Board of  Game meeting  on March  14, they  didn't "bat  an                                                               
eyelid  when they  lost approximately  $180,000 to  musk ox  tags                                                               
when the board reduced the bull musk ox tag from $500 to $25."                                                                  
                                                                                                                                
He  had also  spent  a lot  of  time today  trying  to find  some                                                               
statistics that  would show that educating  hunters increased the                                                               
sale of  licenses or  interest in  the sport  of hunting,  and he                                                               
couldn't  find   anything.  There   is  no   correlation  between                                                               
educating hunters  and making them  long-time hunters  or getting                                                               
them active  in the  shooting sports. If  this bill  doesn't fail                                                               
here, he  wanted it  sent to  Senate Finance  so the  fiscal note                                                               
could be looked at.                                                                                                             
                                                                                                                                
3:54:45 PM                                                                                                                    
DAVE LYON,  representing himself, Homer, Alaska,  opposed HB 161.                                                               
He  is  a  long-time  Alaska  hunter and  member  of  the  Alaska                                                               
Backcountry Hunters  and Anglers  as well as  chair of  the Homer                                                               
Fish and Game Advisory Board.  Despite a whirlwind of last minute                                                               
revisions,  this bill  is  at  its heart  an  affront to  Alaskan                                                               
hunters and in direct conflict  with the common use provisions of                                                               
the Constitution.  There is not  a problem that this  bill fixes;                                                               
the tag  program has been a  success in its current  form and has                                                               
provided ample  funding for many  organizations to  further their                                                               
goals.                                                                                                                          
                                                                                                                                
The  much  lauded "Becoming  an  Outdoors  Woman Program"  is  an                                                               
ongoing program  that is  neither in  jeopardy of  being defunded                                                               
nor exclusively  funded by the  Governor's tag program,  he said.                                                               
In fact,  the Alaska Backcountry  Hunters and Anglers  has funded                                                               
scholarships for the program in the  past with no income from any                                                               
governmental handout.                                                                                                           
                                                                                                                                
He said this  legislation is not a response to  an ongoing issue;                                                               
it is  simply an  example of an  organization wanting  more tags,                                                               
ostensibly  for the  ultimate  good of  Alaskans  and the  ADF&G.                                                               
Everyone wants  more tags,  but for an  increase in  auction tags                                                               
there  obviously needs  to be  a reduction  in tags  available to                                                               
regular hunters, some who can't  afford a high-dollar auction for                                                               
a tag they may, if lucky, get one as a drawing permit.                                                                          
                                                                                                                                
MR.  LYON said  he  didn't know  of any  Alaskans  who feel  that                                                               
giving  a tag  to a  corporate entity  of any  kind is  worth the                                                               
reduction in  their odds for drawing  one of them. To  raise more                                                               
money for the department, hunting  and fishing fees must increase                                                               
and there must be nominal fee  for big game tags. With the Pitman                                                               
Robertson funds available to the  state, each dollar is met three                                                               
to one,  and at the  moment, despite record funds  available, the                                                               
state has had  to leave some of this money  on the table, because                                                               
it isn't raising enough to match it.                                                                                            
                                                                                                                                
MR.  LYON  stated  that  there  is  no  reason  to  believe  this                                                               
legislation will  generate any more  money for  ADF&G, especially                                                               
with an added  percentage of the auction  proceeds being funneled                                                               
away from  the department and  flooding the market with  tags. In                                                               
closing, he  said that the simple  fact that the proceeds  of the                                                               
sale of these tags profit  the NGOs obviously violates the common                                                               
use clause  of our Constitution,  which is wherever  occurring in                                                               
their natural  state, fish, wildlife  and waters are  reserved to                                                               
the people for common use.                                                                                                      
                                                                                                                                
3:57:23 PM                                                                                                                    
SENATOR  MICCICHE said  it doesn't  sound like  he has  a problem                                                               
with the existing  tag statute, and asked why he  thought the new                                                               
plan does have a problem.                                                                                                       
                                                                                                                                
MR.  LYON replied  that the  additional increase  in the  revenue                                                               
that the auctioning  organizations get to keep  from the proceeds                                                               
has  gone up  from 10  to 30  percent. In  the past  when the  10                                                               
percent  is  mentioned,  it has  been  considered  administrative                                                               
costs for the  auction. This has been such  a long-standing issue                                                               
that  probably   it  might  actually   fail  the   common  clause                                                               
challenge,  but  nobody is  bothering  about  it right  now.  But                                                               
generating all this attention may create a bigger problem.                                                                      
                                                                                                                                
3:58:47 PM                                                                                                                    
GEORGE MATZ,  representing himself, Fritz Creek,  Alaska, said he                                                               
is a member  of the Homer Advisory Committee and  opposed HB 161.                                                               
It  makes as  much  sense  as the  legislature  being decided  by                                                               
auction instead  of votes. Basically  HB 161  privatizes Alaska's                                                               
common  use resources.  Continuing the  trend toward  privatizing                                                               
resources goes down  the slippery slope of adding  more hunts and                                                               
more  proceeds   for  private  interests.   Although  non-profits                                                               
benefit  by  this,  they are  private  organizations  not  public                                                               
organizations. Privatization  puts more emphasis on  making money                                                               
and  less on  conservation. The  result usually  turns out  to be                                                               
non-sustainable  harvesting  of  fish and  game  resources,  less                                                               
biodiversity,  and  less  opportunity  for  the  average  hunter.                                                               
Furthermore, HB  161 deletes language  that prohibits  money from                                                               
being  used  for   political  purposes,  which  may   not  be  in                                                               
accordance with ADF&G and other wildlife user groups.                                                                           
                                                                                                                                
He  agreed  that ADF&G  needs  more  funding  if  it is  to  have                                                               
science-based,  sustainable  management   of  Alaska's  fish  and                                                               
wildlife resources.  Unfortunately, he said,  historically, ADF&G                                                               
has been underfunded by the state  in terms of its general funds,                                                               
but fish and  game resources are important to  the general public                                                               
and it should  be paying more for it. So,  they should be looking                                                               
for other options for increasing its funding.                                                                                   
                                                                                                                                
MR. MATZ recalled  that about 20 years ago there  was the concept                                                               
of  a watchable  wildlife equipment  excise tax,  which could  be                                                               
part of the match  for the Fish and Game Fund.  It was a national                                                               
program that  failed ultimately because  Congress didn't  want to                                                               
add another  tax, but it had  general support of the  user groups                                                               
and mixed support from the industry.                                                                                            
                                                                                                                                
4:01:48 PM                                                                                                                    
TOM YOUNG,  representing himself, Homer, Alaska,  opposed HB 161.                                                               
It bothers him to be "selling  game," which is not legal to start                                                               
with.                                                                                                                           
                                                                                                                                
4:02:49 PM                                                                                                                    
BRIAN LYNCH,  founding member and trustee,  Devils Thumb Archer's                                                               
Archery  Club, Petersburg,  Alaska,  said their  concerns are  to                                                               
maintain the  four Ellen  Island elk permits  and the  ability to                                                               
keep 100 percent  of the proceeds that go to  the non-profits for                                                               
the auction of these permits.  He explained that the Archery Club                                                               
is a small 501(c)(3) non-profit  organization with fewer than 100                                                               
members, most  of whom  are family members  with kids.  They have                                                               
been raffling off an Ellen Island  elk permit for nearly 15 years                                                               
and generally they receive $500-1,000, typically.                                                                               
                                                                                                                                
He  said that  even  though  the total  dollars  are small  their                                                               
impact  to their  organization is  substantial, because  they use                                                               
the money to  maintain their archery range,  purchase 3-D archery                                                               
targets, which are  very expensive, and put  on tournaments, open                                                               
houses,  provide   archery  instruction  and  free   use  of  ski                                                               
equipment   by   members   with  an   emphasis   on   encouraging                                                               
participation by  kids. The local schools  have even occasionally                                                               
used the archery range for physical education classes.                                                                          
                                                                                                                                
MR. LYNCH asked  that the Ellen Island elk  provisions in section                                                               
1(c) of HB 161 remain as currently written in the statute.                                                                      
                                                                                                                                
CHAIR GIESSEL asked if he supported the bill.                                                                                   
                                                                                                                                
MR. LYNCH responded  that they just want to make  sure that their                                                               
ability  to raffle  off these  permits and  be able  to keep  100                                                               
percent of  the proceeds remains  in the statute or  however form                                                               
it comes out.                                                                                                                   
                                                                                                                                
SENATOR MICCICHE  commented that the  CS has the same  outcome as                                                               
the root bill.                                                                                                                  
                                                                                                                                
4:05:50 PM                                                                                                                    
RICHARD  ROHRER, representing  himself, Kodiak,  Alaska, said  he                                                               
didn't want to testify at this time.                                                                                            
                                                                                                                                
4:06:23 PM                                                                                                                    
STEVEN  FLORY, representing  himself, Anchorage,  Alaska, opposed                                                               
HB 161.  He is  a past  chairman of the  Anchorage Fish  and Game                                                               
Advisory  Committee   and  past  president  of   the  Wild  Sheep                                                               
Foundation, Alaska  Chapter. He  said there is  no reason  to add                                                               
another sheep tag,  especially when no more money will  go to the                                                               
ADF&G. The  sheep tags have always  been used as a  draw and that                                                               
is  why Alaska  has gotten  so much  money from  them. This  will                                                               
continue if the  application is not changed. If  they add another                                                               
sheep tag that  will add a fiscal  note and the bill  needs to go                                                               
to Finance. The  department would be losing  money, because three                                                               
tags  are worth  less  money than  two.  This is  a  bill to  fix                                                               
something that isn't broken, so  that it will help one particular                                                               
group and one particular lobbyist.                                                                                              
                                                                                                                                
CHAIR GIESSEL asked  if he was one of the  non-profits that had a                                                               
tag to raffle off.                                                                                                              
                                                                                                                                
MR. FLORY replied no.                                                                                                           
                                                                                                                                
4:09:04 PM                                                                                                                    
GARY STEVENS,  representing himself, Chugiak, Alaska,  said he is                                                               
a board member of the Alaska  Outdoor Council, and opposed HB 161                                                               
for all  the same  reasons they  have heard:  it fixes  a problem                                                               
that  is not  broken. He  didn't  understand why  section 1  that                                                               
describes the qualification for  a non-profit corporation that is                                                               
established  to promote  these wonderful  things specifically  in                                                               
partnership with the  ADF&G is a different  qualification than in                                                               
section  3. He  has been  assured that  the new  language doesn't                                                               
limit it  to any one group,  but he thought it  did. Although any                                                               
other group  that wants to  form at this  point and create  a new                                                               
non-profit will  be able to be  awarded this permit if  the ADF&G                                                               
agreed  with  that.  The  biggest  issue he  had  was  he  didn't                                                               
understand  why that  is  different than  the  description for  a                                                               
qualifying non-profit in section 3.                                                                                             
                                                                                                                                
He also stated  that this bill is 100 percent  about money and if                                                               
it passes out of Resources it should go to Finance.                                                                             
                                                                                                                                
SENATOR MICCICHE  asked what type  of organization  would qualify                                                               
under section 1.                                                                                                                
                                                                                                                                
MR.  STEVENS answered  that it  specifically  says "a  non-profit                                                               
corporation   established  to   promote   education  in   outdoor                                                               
traditions and  conservation and wildlife protection  programs in                                                               
partnership  with  the  department,"   and  the  only  non-profit                                                               
corporation  that was  created to  work in  partnership with  the                                                               
ADF&G is the Outdoor Heritage Foundation of Alaska.                                                                             
                                                                                                                                
4:12:37 PM                                                                                                                    
ZACHARY DUNLAP, representing  himself, Anchorage, Alaska, opposed                                                               
HB 161  for all  the reason  already mentioned.  He is  a younger                                                               
Alaskan who  uses every  tag he  gets, most of  it for  meat, and                                                               
adding  more  tags  to  the  non-profits  takes  them  away  from                                                               
hunters.                                                                                                                        
                                                                                                                                
4:14:50 PM                                                                                                                    
YOLANDA  DELACRUZ,   representing  herself,   Anchorage,  Alaska,                                                               
opposed HB  161, because the  natural resources in  Alaska belong                                                               
to all  Alaskans, not  just the  politicians and  trophy hunters.                                                               
She is against sport hunting, but not against hunting for food.                                                                 
                                                                                                                                
4:18:34 PM                                                                                                                    
GARY  GEARHART,  President,  Safari  Club  International,  Alaska                                                               
Chapter, Palmer,  Alaska, supported HB  161. He said a  couple of                                                               
things are  important: it requires  the non-profits to  work with                                                               
the  department to  reach  an agreement  where  the funds  raised                                                               
should be spent  and that would increase the  effort toward ADF&G                                                               
totally. Increasing  the share to  the non-profits  will increase                                                               
their opportunity to raise money  for their specific projects; it                                                               
is not just restricted to the one.                                                                                              
                                                                                                                                
4:20:04 PM                                                                                                                    
BETHANY  MARCUM, representing  herself,  Anchorage, Alaska,  said                                                               
she is a  graduate of ADF&G's Becoming an  Outdoors Woman Program                                                               
(BOW) supported HB  161. She learned to hunt and  fish as well as                                                               
other outdoor  skills as  a result  of the  program, and  she now                                                               
donates  much of  her  time to  support  conservation efforts  in                                                               
Alaska. She  also buys  a hunting,  fishing and  trapping license                                                               
every year  and fills her freezer  with wild game and  fish. Many                                                               
others have gained  skills through this program  and volunteer to                                                               
support conservation.                                                                                                           
                                                                                                                                
She supported  HB 161,  because she thought  the change  in ratio                                                               
from  90/10 to  70/30 will  create  more incentive  for the  non-                                                               
profits to engage  in the process and it is  important to require                                                               
them to engage with ADF&G, so funds are spent appropriately.                                                                    
                                                                                                                                
MS. MARCUM  said she knows  state funds  are tight and  this bill                                                               
provides  a way  for the  non-profits  to raise  money for  their                                                               
projects  instead of  coming  the legislature  and  asking for  a                                                               
handout.                                                                                                                        
                                                                                                                                
4:22:23 PM                                                                                                                    
KEN TAYLOR,  representing himself, Anchorage, Alaska,  said he is                                                               
a board member  of the Outdoor Heritage Foundation  of Alaska and                                                               
supported  HB 161.  He  explained that  they  had primarily  been                                                               
raising  their  funding for  running  this  non-profit through  a                                                               
charity  shoot  that is  held  every  summer.  So, they  are  not                                                               
looking  at this  bill  as  a funding  mechanism  for just  their                                                               
organization that supports a lot  of programs in partnership with                                                               
the ADF&G. He didn't believe this language is that restrictive.                                                                 
                                                                                                                                
If  the  provision  in  section   (a)  that  says  "a  non-profit                                                               
organization  established   to  promote  education   and  outdoor                                                               
traditions and  conservation" limits  the pool of  non-profits to                                                               
just the Outdoor  Heritage Foundation, that needs  to be changed.                                                               
But he didn't think it did.                                                                                                     
                                                                                                                                
MR.  TAYLOR  said  he  understood  the  Wild  Sheep  Foundation's                                                               
concerns about diluting the number  of permits, and they could be                                                               
right, but there have been  some discussions about the common use                                                               
clause  in Article  8 of  the  Constitution and  how the  state's                                                               
fish, wildlife and waters are  reserved for leaves out beneficial                                                               
uses. Educate children and others about what conservation means.                                                                
                                                                                                                                
4:25:56 PM                                                                                                                    
GEORGE PIERCE, representing himself,  Kasilof, Alaska, opposed HB
161.  He said  it  will double  the number  of  big game  permits                                                               
donated  to organizations  to auction  off, most  often, to  non-                                                               
residents  and  there  isn't  even   enough  game  for  Alaskans.                                                               
Residents  hunt for  food and  non-residents hunt  for horns,  he                                                               
said, and  they rarely  take the meat  home with  them. Residents                                                               
are required to take it  home. Alaska's resources are supposed to                                                               
be managed for  the benefit of all Alaskans and  Article 8 of the                                                               
Constitution says  so. Where in  the Constitution does it  say to                                                               
even fund these folks, at all?                                                                                                  
                                                                                                                                
4:28:50 PM                                                                                                                    
EDDIE   GRASSER,   lobbyist,    Vice   President,   Safari   Club                                                               
International  and,   President,  Outdoor   Heritage  Foundation,                                                               
Palmer, Alaska, supported HB 161.  He knew of several non-profits                                                               
that have worked  with the department on  education projects; any                                                               
organizations who  go to the  department and agree  to conditions                                                               
in an  MOA and terms  of the language in  the first part  of this                                                               
bill can do so. Nothing stops them.                                                                                             
                                                                                                                                
He said the  current system may not be broken,  but the ADF&G and                                                               
several of  the NGOs that  support this  bill were looking  for a                                                               
mechanism  to  help  the  department's  education  programs.  The                                                               
current governor's  permits only allows for  conservation and law                                                               
enforcement  programs. Education  is  a vital  part  of what  the                                                               
department needs to  do. America is becoming more  urbanized as a                                                               
culture  and  a  survey  has indicated  that  education  programs                                                               
increase purchase of hunting and fishing licenses.                                                                              
                                                                                                                                
SENATOR MICCICHE  said the only thing  the money can be  used for                                                               
is  to support  outdoor  and traditional  education projects  and                                                               
conservation  and wildlife  protection programs  approved by  the                                                               
department, and  asked what those  might look like as  opposed to                                                               
things that folks  might fear that direct  someone politically to                                                               
oppose some kind of a ballot proposition.                                                                                       
                                                                                                                                
MR.  GRASSER answered  that  it  would be  very  unlikely that  a                                                               
department person working on an MOA  with a non-profit for one of                                                               
these permits on the 30  percent would ever consider approving it                                                               
to be spent  on political purposes. Secondly,  some testimony has                                                               
been  incorrect: 501  (c)(3)s are  not private  enterprises; they                                                               
are  public corporations  whose books  are open  to the  public (                                                               
under  IRS regulations).  The IRS  also prohibits  501(c)(3) non-                                                               
profits from doing politics.                                                                                                    
                                                                                                                                
SENATOR  MICCICHE said  all have  witnessed 501(c)(3)  improperly                                                               
engaging in illegal  activities and he understood  the fear. It's                                                               
worth pointing out and ensuring that doesn't occur.                                                                             
                                                                                                                                
SENATOR  DYSON asked  of the  list of  people who  are groups  in                                                               
favor of  this bill, if  are any liable to  get any of  the funds                                                               
through this program.                                                                                                           
                                                                                                                                
MR.  GRASSER answered  probably all  of them  are. A  lot of  the                                                               
groups  that  aren't  in  favor  of  this  would  have  the  same                                                               
opportunity; they would just have to apply.                                                                                     
                                                                                                                                
SENATOR DYSON remarked that some 30 groups might qualify.                                                                       
                                                                                                                                
MR. GRASSER said that was true.                                                                                                 
                                                                                                                                
4:36:25 PM                                                                                                                    
ROD ARNO,  Executive Director,  Alaska Outdoor  Council, Wasilla,                                                               
Alaska,  opposed HB  161. He  said  they are  an organization  of                                                               
about 48 clubs and they just met  a couple of weeks ago and chose                                                               
to oppose  HB 161  as written.  The most  important thing  to the                                                               
council is that it doesn't want  to diminish the integrity of the                                                               
Fish  and Game  Fund  and the  matching  Pitman Robertson  funds.                                                               
Concerns at  the time were if  this would infringe on  Article 8,                                                               
Section 3 on common use and at  the time the argument was that it                                                               
was only  one bison and that  was alright because it  was a small                                                               
number.  At  that time  the  money  was  to  go to  the  Wildlife                                                               
Safeguard Program. Since then AOC  supported the legislation that                                                               
increased the big game tags to include elk tags.                                                                                
                                                                                                                                
He   said   they   were   concerned   with   accountability   and                                                               
transparency,  which they  still don't  see. The  Legislature has                                                               
oversight in  AS 16.05.130(d) that  says the ADF&G has  to report                                                               
each year on  the expenditures out of the Fish  and Game Fund. He                                                               
tracked those  expenditures and found  hunter services,  but they                                                               
don't account for  the donations that have gone to  the NGOs, and                                                               
that is another major concern. The  AOC has gotten the permit and                                                               
has shared it with the department,  but there is no accounting of                                                               
that  money  going  back  to the  Department  of  Public  Safety,                                                               
because they chose  to put money back into  the Safeguard Program                                                               
for Delta bison.                                                                                                                
                                                                                                                                
4:39:40 PM                                                                                                                    
But the biggest concern they have  is that it will jeopardize the                                                               
current  process. It's  not getting  challenged,  because it's  a                                                               
small number and a small  percentage goes to the NGOs. Increasing                                                               
that percentage from  10 to 30 percent,  specifically because the                                                               
harvestable  sheep  surplus  is  way  down  (about  half  of  the                                                               
historical harvest),  and the public  is aware of the  demand and                                                               
all of a sudden it means a lot more.                                                                                            
                                                                                                                                
SENATOR MICCICHE asked for list of  48 clubs he represents and if                                                               
they support  this program  at all along  with an  accounting for                                                               
past funds.                                                                                                                     
                                                                                                                                
MR. ARNO  said they see the  value of the auction  permit process                                                               
and hoped for an audit of it.                                                                                                   
                                                                                                                                
4:41:55 PM                                                                                                                    
SENATOR DYSON asked if the NRA is part of the AOC.                                                                              
                                                                                                                                
MR. ARNO answered yes.                                                                                                          
                                                                                                                                
SENATOR DYSON asked if Eddie's group is part of the AOC.                                                                        
                                                                                                                                
MR. ARNO answered no.                                                                                                           
                                                                                                                                
SENATOR DYSON asked him to name some members of the AOC.                                                                        
                                                                                                                                
MR.  ARNO replied  the Territorial  Sportsmen, the  Tanana Valley                                                               
Sportsmen,  the Alaska  Outdoor Access  Alliance, and  the Ruffed                                                               
Grouse Society.                                                                                                                 
                                                                                                                                
SENATOR  DYSON thanked  him for  his candid  assessment that  the                                                               
oversight of the  money the AOC has gotten hasn't  been very well                                                               
done, and  asked what process they  go through to get  members to                                                               
weigh in.                                                                                                                       
                                                                                                                                
MR. ARNO explained  that at their annual meeting,  each club gets                                                               
one  delegate  with one  vote  and  there  are three  votes  from                                                               
individual  memberships in  the three  areas. The  legislation is                                                               
presented and discussed. Then the delegates vote.                                                                               
                                                                                                                                
SENATOR  DYSON said  that implies  that the  delegates that  come                                                               
have the authority to speak for their group.                                                                                    
                                                                                                                                
MR. ARNO said that was correct.                                                                                                 
                                                                                                                                
CHAIR  GIESSEL  found  no further  questions  and  closed  public                                                               
testimony.                                                                                                                      
                                                                                                                                
CHAIR   GIESSEL   wanted   Mr.   Bullard  to   respond   to   the                                                               
constitutionality question of common use.                                                                                       
                                                                                                                                
4:45:09 PM                                                                                                                    
ALPHEUS  BULLARD, Attorney,  Legislative  Legal Division,  Alaska                                                               
State   Legislature,   Juneau,   Alaska,  explained   that   this                                                               
legislation  implicates  it,  but  he  didn't know  if  it  is  a                                                               
violation. There  is a spectrum:  at some point given  the number                                                               
of permits and the condition somewhere there will be a line.                                                                    
                                                                                                                                
4:46:24 PM                                                                                                                    
REPRESENTATIVE GATTIS  said the accountability question  could be                                                               
addressed by Mr. Lang.                                                                                                          
                                                                                                                                
She  said  this bill  was  started  last  year and  went  through                                                               
committee  after committee;  she worked  with folks  on line  and                                                               
some of today's things had not  come up before, like having to go                                                               
to Finance and accountability.                                                                                                  
                                                                                                                                
In regards  to the  political gain,  another committee  wanted to                                                               
put  in  the following  language:  "Not  to  be  used to  make  a                                                               
contribution to  any candidate  for political  office or  for any                                                               
organizations supporting  or opposing  ballot propositions  or to                                                               
pay  expenses associated  with lobbying  the  legislature or  the                                                               
administration." She  then heard  that didn't have  to be  in the                                                               
bill  and  the  permits  may  be used  only  to  support  outdoor                                                               
traditions.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GATTIS  said she  had  put  things in  and  taken                                                               
things  out, and  had tried  for two  years to  go through  every                                                               
angle but  she had  "no intention of  getting involved"  with the                                                               
clubs'  different  philosophies. She  wanted  what  was best  for                                                               
Alaska, Alaskans, and  the department on how to use  the fund for                                                               
education.  Nothing in  the  bill says,  and  the department  has                                                               
reiterated, that  there will  be special  hunts in  closed areas,                                                               
out of season hunts, or  allowable helicopter use. She noted that                                                               
this bill  passed out of the  House with a  vote of 30 to  5, and                                                               
the five folks that struggled with it were from Fairbanks.                                                                      
                                                                                                                                
4:50:59 PM                                                                                                                    
SENATOR MICCICHE  commented that it's unfortunate,  because there                                                               
are many  people on both sides  of this issue that  normally work                                                               
together  on outdoor  tradition and  related issues,  and it  was                                                               
painful to watch.                                                                                                               
                                                                                                                                
SENATOR DYSON said  he was concerned about the fiscal  side of it                                                               
and  was surprised  the bill  had no  Finance referral  in either                                                               
house.                                                                                                                          
                                                                                                                                
4:52:20 PM                                                                                                                    
SENATOR  DYSON moved  to report  SCS CSHB  161(RES), version  28-                                                               
LS0530\I, from committee  to the next committee  of referral with                                                               
attached  zero fiscal  note  and  individual recommendations.  He                                                               
said if  it is passed,  he personally wanted a  Finance referral.                                                               
There were no objections and it was so ordered.                                                                                 
                                                                                                                                
4:52:53 PM                                                                                                                    
At ease from 4:52 to 4:54 p.m.                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
HB 268 vs P.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Sponsor Statement.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 ver P Sectional Analysis.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Fiscal Note DOR-1.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Fiscal Note DOR-2.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Nanooks News Article 1.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Nanooks News Article 2.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Nanooks picture 1.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Nanooks Picture 2.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 TVSA Club House Picture.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Supp Letter DavidHillberry 20131126.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Supp Letter LarryKappel 20131202.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Supp Letter AmandaHillberry 20131126.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Supp Letter LayneLewis 20131202.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Supp Letter Mike&EileenDubowski 20140120.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Supp Letter Milton&PhyllisMayr 20131202.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Supp Letter PamelaLewis 20131202.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Supp Letter RichardTate.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Supp Letter Sheena Cummings 20140106.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Supp Letter TVSA 20140103.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 268 Supp Letter UAF.pdf SRES 4/2/2014 3:30:00 PM
HB 268
HB 161 vs I.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB161 Sectional ver I.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB161 Explanation of Changes R to I.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB 161 Opp Letter ThomasYoung 20140331.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB 161 Opp Letter JohnCampbell 20140328.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB 161 Comments RonSommerville 20140325.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB 161 Opp Letter Zachery Dunlap 20140327.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB 161 Opp Letter FrankNeumann 20140331.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB 161 Legal Memo 20140328.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB 161 Supp Letter OHF EddieGrasser 20140402.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB 161 Opp Letter BrianMason 20130401.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB 161 Opp Letter DaveLyon 20140402.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB 161 Opp Letter DaveMadden 20140402.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB 161 Opp Letter MelvinRoe 20140401.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB 161 Opp Letter MikeMcCrary 20130401.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB 161 Opp Letter RobertHoward 20140402.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB 161 Supp Letter CorineHickey 20140311.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB 161 AOC Member Clubs.pdf SRES 4/2/2014 3:30:00 PM
HB 161
HB 161 Opp Letter ScottLuber 20140402.pdf SRES 4/2/2014 3:30:00 PM
HB 161