Legislature(2001 - 2002)

03/19/2001 05:08 PM House FSH

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                         March 19, 2001                                                                                         
                            5:08 p.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Gary Stevens, Co-Chair                                                                                           
Representative Peggy Wilson, Co-Chair                                                                                           
Representative Drew Scalzi                                                                                                      
Representative Fred Dyson                                                                                                       
Representative John Coghill                                                                                                     
Representative Mary Kapsner                                                                                                     
Representative Beth Kerttula                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 154                                                                                                              
"An Act relating to security for the payment of fishery business                                                                
taxes and to payment of estimated fisheries resource landing                                                                    
taxes and penalties."                                                                                                           
                                                                                                                                
     - MOVED CSHB 154(FSH) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 131                                                                                                              
"An Act relating to standards for forest resources and                                                                          
practices; and providing for an effective date."                                                                                
                                                                                                                                
     - MOVED HB 131 OUT OF COMMITTEE                                                                                            
                                                                                                                              
TERM EXPIRATION DATE FOR BRUCE TWOMLEY, COMMISSIONER, COMMERCIAL                                                                
FISHERIES ENTRY COMMISSION                                                                                                      
                                                                                                                                
     - CHANGED FROM 7/01/04 TO 3/01/05                                                                                          
                                                                                                                              
LETTER TO THE DEPARTMENT OF PUBLIC SAFETY RE:  POACHING                                                                         
                                                                                                                                
     - ADOPTED NEW LANGUAGE                                                                                                     
                                                                                                                                
HOUSE BILL NO. 148                                                                                                              
"An Act establishing a moratorium on the foreclosure of certain                                                                 
loans; making the moratorium retroactive; requiring the reversal                                                                
of certain foreclosures and the return of certain property                                                                      
interests; and providing for an effective date."                                                                                
                                                                                                                                
     - BILL HEARING POSTPONED                                                                                                   
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                                
BILL: HB 154                                                                                                                  
SHORT TITLE:COLLECTION OF FISHERY BUSINESS TAXES                                                                                
SPONSOR(S): REPRESENTATIVE(S)SCALZI                                                                                             
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
02/28/01     0462       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
02/28/01     0462       (H)        FSH, RES, FIN                                                                                
03/12/01                (H)        FSH AT 5:00 PM CAPITOL 124                                                                   
03/12/01                (H)        Heard & Held                                                                                 
                                   MINUTE(FSH)                                                                                  
03/19/01                (H)        FSH AT 5:00 PM CAPITOL                                                                       
                                                                                                                                
BILL: HB 131                                                                                                                  
SHORT TITLE:FOREST RESOURCES & PRACTICES STANDARDS                                                                              
SPONSOR(S): RLS BY REQUEST OF THE GOVERNOR                                                                                      
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
02/16/01     0346       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
02/16/01     0346       (H)        FSH, RES                                                                                     
02/16/01     0346       (H)        FN1: ZERO(DNR)                                                                               
02/16/01     0346       (H)        GOVERNOR'S TRANSMITTAL LETTER                                                                
03/19/01                (H)        FSH AT 5:00 PM CAPITOL 124                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CHUCK HARLAMERT, Juneau Section Chief                                                                                           
Tax Division                                                                                                                    
Department of Revenue                                                                                                           
PO Box 110420                                                                                                                   
Juneau, Alaska  99811                                                                                                           
POSITION STATEMENT:  Testified on HB 154 and answered questions.                                                                
                                                                                                                                
KEVIN HOGAN, President                                                                                                          
Auction Block                                                                                                                   
PO Box 2228                                                                                                                     
Homer, Alaska  99603                                                                                                            
POSITION STATEMENT:  Testified in support of HB 154.                                                                            
                                                                                                                                
JEFF JAHNKE, State Forester                                                                                                     
Division of Forestry                                                                                                            
Department of Natural Resources;                                                                                                
Presiding Officer                                                                                                               
Board of Forestry                                                                                                               
400 Willoughby                                                                                                                  
Juneau, Alaska 99801                                                                                                            
POSITION STATEMENT:  Testified on HB 131.                                                                                       
                                                                                                                                
MARTHA "MARTY" WELBOURN-FREEMAN                                                                                                 
Forest Resources Program Manager                                                                                                
Division of Forestry                                                                                                            
Department of Natural Resources                                                                                                 
550 West 7th Avenue                                                                                                             
Anchorage, Alaska 99501                                                                                                         
POSITION STATEMENT:  Testified on HB 131.                                                                                       
                                                                                                                                
JILL KLEIN, Project Manager                                                                                                     
Yukon River Drainage Fisheries Association                                                                                      
1120 G Street                                                                                                                   
Anchorage, Alaska 99501                                                                                                         
POSITION STATEMENT:  Testified in support of HB 131.                                                                            
                                                                                                                                
NANCY FRESCO                                                                                                                    
Northern Alaska Environmental Center                                                                                            
281 Driveway Street                                                                                                             
Fairbanks, Alaska 99701                                                                                                         
POSITION STATEMENT:  Testified in support of HB 131.                                                                            
                                                                                                                                
CHRIS STARK                                                                                                                   
PO Box 80543                                                                                                                    
Fairbanks, Alaska 99708                                                                                                         
POSITION STATEMENT:  Testified in support of HB 131.                                                                            
                                                                                                                              
LARRY SMITH                                                                                                                     
1520 Lakeshore Drive                                                                                                            
Homer, Alaska 99603                                                                                                             
POSITION STATEMENT:  Testified on behalf of himself in support                                                                  
of HB 131.                                                                                                                      
                                                                                                                              
JERRY McCUNE                                                                                                                    
United Fishermen of Alaska                                                                                                      
(No address provided)                                                                                                           
POSITION STATEMENT:  Testified on HB 131 and in the discussion                                                                  
of the letter to the Department of Public Safety.                                                                               
                                                                                                                                
EDWARD C. FURMAN                                                                                                                
PO Box 2367                                                                                                                     
Cordova, Alaska  99574                                                                                                          
POSITION  STATEMENT:   Testified on  behalf of  the  fishermen of                                                               
Cordova on HB 131.                                                                                                              
                                                                                                                              
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 01-12, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CO-CHAIR  PEGGY  WILSON called  the  House  Special Committee  on                                                               
Fisheries meeting to  order at 5:08 p.m.   Members present at the                                                               
call  to order  were Representatives  Coghill,  Scalzi, Kerttula,                                                               
Stevens, and  Wilson.  Representatives Dyson  and Kapsner arrived                                                               
as the meeting was in progress.                                                                                                 
                                                                                                                                
HB 154-COLLECTION OF FISHERY BUSINESS TAXES                                                                                   
                                                                                                                                
CO-CHAIR WILSON  announced the first  order of business  would be                                                               
HOUSE BILL NO. 154, "An Act  relating to security for the payment                                                               
of fishery business  taxes and to payment  of estimated fisheries                                                               
resource landing  taxes and  penalties."  [Before  the committee,                                                               
adopted  as a  work draft  on 3/12/01,  was a  proposed committee                                                               
substitute (CS), version 22-LS0638\F, Utermohle, 3/9/01.]                                                                       
                                                                                                                                
Number 0133                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SCALZI,  sponsor of  the  bill,  referred to  his                                                               
testimony from  the week before  and said this  bill is not  on a                                                               
"fast track," but  that he wanted the House  Special Committee on                                                               
Fisheries to  discuss it.  He  said he also wanted  to hear input                                                               
from constituents on any negative aspects of the bill.                                                                          
                                                                                                                                
REPRESENTATIVE  SCALZI  went  on  to  say  that  since  the  last                                                               
meeting,  he has  spoken with  the Department  of  Revenue, which                                                               
suggested an amendment [later adopted as Amendment 1] that read:                                                                
                                                                                                                                
     *Sec.2.  AS 43.77.020 is amended to read as follows:                                                                       
                                                                                                                                
       (a) A  person subject to  the tax under  this chapter                                                                    
     shall  file  a  return  stating the  value  of  fishery                                                                    
     resources landed  in the state that are  subject to the                                                                    
     tax, the point of  landing of the fishery resource, and                                                                    
     other   information   the    department   requires   by                                                                    
     regulation.                                                                                                                
                                                                                                                                
       (b)  The return  shall be  made on  the basis  of the                                                                    
     calendar year [TO THE  DEPARTMENT AT JUNEAU] and is due                                                                
     before April  1 after the  close of the  calendar year,                                                                    
     and  [THE}  any  unpaid  tax  shall be  paid  with  the                                                                
     return.                                                                                                                    
                                                                                                                                
       (c) The department  may, under regulations it adopts,                                                                    
     grant a  reasonable extension  of time for  the filing.                                                                    
     A grant  of an  extension of time  for filing  does not                                                                    
     extend the time for payment of the tax.                                                                                    
                                                                                                                                
       (d) A person subject  to tax under this chapter shall                                                                
     make quarterly payments of  the tax estimated to be due                                                                
     for the year, as  required under regulations adopted by                                                                
     the  department.   A  taxpayer will  be  subject to  an                                                                
     estimated  tax  penalty,  determined  by  applying  the                                                                
     interest  rate   specified  in  AS   43.05.225  to  the                                                                
     underpayment  for  each  quarter, unless  the  taxpayer                                                                
     makes  estimated  tax  payments in  equal  installments                                                                
     that total either                                                                                                      
          (1) at least 90 percent of the taxpayer's tax                                                                     
     liability under this chapter for the tax year, or                                                                      
          (2) at least 100 percent of the taxpayer's tax                                                                    
     liability under this chapter for the prior tax year.                                                                   
                                                                                                                                
REPRESENTATIVE   SCALZI  informed   the   committee  that   Chuck                                                               
Harlamert  from  the  Department  of Revenue  would  explain  the                                                               
purpose  of  this amendment.    It  doesn't  affect the  original                                                               
intent of  the bill  "that fresh-fish sales  can operate  under a                                                               
different  taxing  structure than  a  processor  for purposes  of                                                               
collection  of  taxation."    Rather,  it  deals  with  statutory                                                               
changes that are currently in regulation.                                                                                       
                                                                                                                                
Number 0296                                                                                                                     
                                                                                                                                
CHUCK HARLAMERT,  Juneau Section Chief,  Tax Division, Department                                                               
of  Revenue, explained  that Amendment  1 provides  cleaner, more                                                               
common language to  reach the intent in  the original bill, which                                                               
is  to require  estimated tax  payments  for landing  tax.   This                                                               
amendment also  provides a "safe  harbor" for how  much estimated                                                               
tax taxpayers  must pay in order  to avoid penalties.   There are                                                               
two safe harbors:  pay the  amount of tax paid in the prior year,                                                               
or  pay 90  percent of  the current  year's tax.   In  short, the                                                               
amendment clearly  labels the  payments as  an estimated  tax and                                                               
more clearly lays  out the amount of tax one  should be paying or                                                               
estimating.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SCALZI requested  clarification  on whether  this                                                               
currently  applies   to  processors,  and  not   fresh  fish,  in                                                               
regulations.                                                                                                                    
                                                                                                                                
MR. HARLAMERT confirmed  this statement.  He  clarified that this                                                               
provision applies only to  taxpayers under AS.43.77.020, which is                                                               
the landing tax.  These taxpayers are typically catcher-                                                                        
processors  who  catch  and  process  fish  outside  of  Alaska's                                                               
territorial  limits.   However, they  land their  fish  inside of                                                               
Alaska and  therefore pay a  fishery resource landing  tax, which                                                               
is  a  complementary  tax  to  the fishery  business  tax.    The                                                               
amendment  simply  improves the  language  of  Section  2 of  the                                                               
original bill without  changing the bill's intent.   It clarifies                                                               
for the taxpayer what the required payment is.                                                                                  
                                                                                                                                
CO-CHAIR WILSON  wondered if  this amendment  had anything  to do                                                               
with the bill.                                                                                                                  
                                                                                                                                
REPRESENTATIVE SCALZI  remarked that  the amendment is  a "rider"                                                               
to the  bill.   Everyone knows the  intent of the  original bill,                                                               
but  since "we"  were going  into  this section  in  statute, the                                                               
department wanted to add clarifying  language.  He said he had no                                                               
objection  to  the  amendment  since  it  is  beneficial  to  the                                                               
taxpayers for understanding  their liability, and it  is put into                                                               
statute.                                                                                                                        
                                                                                                                                
MR.  HARLAMERT  said  that   regulations  require  estimated  tax                                                               
payments, and most taxpayers  make them.  However, the Department                                                               
of  Revenue would  like these  particular regulations  to  be put                                                               
into statute as well.                                                                                                           
                                                                                                                                
Number 0667                                                                                                                     
                                                                                                                                
CO-CHAIR STEVENS remarked that  he understood (d)(1) of Amendment                                                               
1.  He referred to (d)(2), which read:                                                                                          
                                                                                                                                
         (2) at least 100 percent of the taxpayer's tax                                                                     
     liability under this chapter for the prior tax year.                                                                   
                                                                                                                                
CO-CHAIR STEVENS asked whether this could vary for catcher-                                                                     
processors.   For example, if [fishermen]  "made only part  of the                                                              
season or  didn't have a good  season," would they be  required to                                                              
pay the same amount they paid the  prior year?  He also asked when                                                              
they would pay the remainder owed to the state.                                                                                 
                                                                                                                                
MR. HARLAMERT replied that the remainder  is paid with the return,                                                              
which by statute  is before April 1; however,  this sometimes gets                                                              
delayed.                                                                                                                        
                                                                                                                                
CO-CHAIR STEVENS asked  how this works regarding  a time sequence.                                                              
At what point  would last year's tax liability be  paid, and would                                                              
the balance be paid on April 1?                                                                                                 
                                                                                                                                
MR. HARLAMERT  said he believed  evenly spaced  quarterly payments                                                              
would be due March 15, June 15, September 15, and December 15.                                                                  
                                                                                                                                
CO-CHAIR STEVENS asked, if someone  was paying 100 percent of what                                                              
was paid the prior year, whether  he or she would pay by quarterly                                                              
payments.                                                                                                                       
                                                                                                                                
MR. HARLAMERT said  the person could make a choice:   estimate the                                                              
liability for the current  year and pay up to 90  percent of that,                                                              
or "play it safe and secure" by  paying 100 percent of last year's                                                              
taxes.  The lesser of those  amounts can be paid without incurring                                                              
a penalty.  He offered an example.   He then said it is similar to                                                              
an individual income tax, but corporate.                                                                                        
                                                                                                                                
Number 0850                                                                                                                     
                                                                                                                                
REPRESENTATIVE SCALZI  made a  motion to  adopt Amendment  1 [text                                                              
provided previously].   There being no objection,  Amendment 1 was                                                              
adopted.                                                                                                                        
                                                                                                                                
Number 0963                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL  made a  motion to  move CSHB  154, version                                                              
22-LS0638\F, Utermohle,  3/9/01, as  amended, from  committee with                                                              
individual  recommendations and  the  attached  zero fiscal  note.                                                              
There being no  objection, CSHB 154(FSH) was moved  from the House                                                              
Special Committee on Fisheries.                                                                                                 
                                                                                                                                
CO-CHAIR WILSON apologized, saying someone wanted to speak.                                                                     
                                                                                                                                
KEVIN HOGAN, President, Auction Block Company, testified via                                                                    
teleconference:                                                                                                                 
                                                                                                                                
     I'll give you  a little history of  what our company is                                                                    
     about  and how  we tie  into  the fish  business.   The                                                                    
     company was formed  in 1997, and at that  time we got a                                                                    
     fisheries  business license  because we  didn't  have a                                                                    
     prior track record.   We had a very  low estimated fish                                                                    
     tax, which  was very  easy to bond,  and that's  how we                                                                    
     obtained our fisheries business license.                                                                                   
                                                                                                                                
     In 1998, we became the  largest buyer of halibut in the                                                                    
     state, and  correspondingly we  had a much  larger fish                                                                    
     tax  debt.   ... We've  always  paid our  fish  tax and                                                                    
     intend to continue to do so. ...                                                                                           
                                                                                                                                
     Our business is an  Internet fish auction.  The vessels                                                                    
     come in and list their  loads with us and we auction it                                                                    
     off over  the Internet.   So  it's been  beneficial for                                                                    
     the  state by  raising the  ex-vessel prices,  and thus                                                                    
     the corresponding  raw fish taxes is based  on that ex-                                                                    
     vessel price.                                                                                                              
                                                                                                                                
     Having become  successful doing  this, we  encouraged a                                                                    
     rather  large   raw  fish   tax,  as  we   were  taking                                                                    
     possession of  the fish under  our own fish  ticket and                                                                    
     then sending  it out  to the winning  bidders, wherever                                                                    
     they might be.                                                                                                             
                                                                                                                                
     So last  year we had an  arrangement where we  put up a                                                                    
     bond  and  paid  as  we  went  on our  fish  tax.    We                                                                    
     estimated what  we thought  our liability was  going to                                                                    
     be and  we, of  course, overshot that  by quite  a bit.                                                                    
     So the  current year, in  order to obtain  our business                                                                    
     license, the requirement was  that we come up with over                                                                    
     $350,000 prepaid fish tax.                                                                                                 
                                                                                                                                
     Our operation  has absolutely very little,  and we have                                                                    
     no real property, which  is the only thing accepted for                                                                    
     collateral.  ... We  operate on  a smaller  margin than                                                                    
     what  the  raw  fish   tax  amounts  to  (indisc.)  and                                                                    
     whatever profits we might have.                                                                                            
                                                                                                                                
     So for  the last  two years,  virtually 100  percent of                                                                    
     the  profits  of  business   that  generated  had  been                                                                    
     pledged to  the state  as collateral for  obtaining the                                                                    
     fisheries business license.   Eventually, we would like                                                                    
     to be able  to continue to pay our tax  and not have to                                                                    
     commit 100 percent  of what we make.   It would be nice                                                                    
     to be able to eat, too.                                                                                                    
                                                                                                                                
     So,  I   support  this  legislation.     I  think  it's                                                                    
     important  that   the  state  keep   current  with  new                                                                    
     developments in  the industry and not get  stuck in the                                                                    
     rut of having  our industry exist in the  past.  As new                                                                    
     developments  and technology  and  markets develop,  we                                                                    
     have to have the  flexibility and mechanisms to be able                                                                    
     to  adjust and  accommodate the  changes in  the market                                                                    
     and industry.  So, I think this helps.                                                                                     
                                                                                                                                
     I think  I'd like to see  that it also  be (indisc.) to                                                                    
     the shoreside processors too.   And I know that smaller                                                                    
     businesses  have  a  large difficulty  in  capitalizing                                                                    
     their operations  and being able to pay  100 percent of                                                                    
     their  tax liability  upfront.   If they're  allowed to                                                                    
     pay  as they  go, it  just  expands the  world  for our                                                                    
     markets.                                                                                                                   
                                                                                                                                
     So  I  appreciate your  considering  this  bill, and  I                                                                    
     would  hope that  you  support it  and  get it  passed.                                                                    
     Thank you.                                                                                                                 
                                                                                                                                
[CSHB 154(FSH) was moved out of the House Special Committee                                                                     
on Fisheries.]                                                                                                                  
                                                                                                                                
HB 131-FOREST RESOURCES & PRACTICES STANDARDS                                                                                 
                                                                                                                                
CO-CHAIR WILSON  announced that the  next order of  business would                                                              
be HOUSE  BILL NO. 131, "An  Act relating to standards  for forest                                                              
resources  and practices;  and providing  for an  effective date."                                                              
Chair Wilson clarified that HB 131 is the governor's bill.                                                                      
                                                                                                                                
Number 1422                                                                                                                     
                                                                                                                                
JEFF JAHNKE,  State Forester, Division of  Forestry, Department of                                                              
Natural  Resources; Presiding  Officer,  Board  of Forestry,  came                                                              
forth on  behalf of the administration  and the Board  of Forestry                                                              
in support  of HB 131.   He said this  bill is the result  of hard                                                              
work by many  people.  The bill  began from a Board  of Forestry's                                                              
request  that   the  agency  be  responsible   for  Alaska  Forest                                                              
Resources  &  Practices  Act  (FRPA)  review  of  the  repair  and                                                              
management standards  throughout the state.   [Note:  The  FRPA is                                                              
often called the Forest Practices Act as well.]                                                                                 
                                                                                                                                
MR. JAHNKE explained  that the process began with a  review of the                                                              
coastal region,  Region I,  which culminated in  SB 12,  passed by                                                              
the legislature  in  1999.  The  review for  the Interior  region,                                                              
Region III,  has now been  completed.   "We" began with  a science                                                              
and  technical  committee  that   recommended  changes  needed  to                                                              
provide adequate  protection for  fish habitat and  water quality.                                                              
The next  step was to work  toward an implementation group.   This                                                              
group  represented   affected  interests,  to  determine   how  to                                                              
implement  the recommendations  in the  manner that  works on  the                                                              
ground.  Following this, legislation [HB 131] was drafted.                                                                      
                                                                                                                                
MR. JAHNKE  said the three  key points to  this bill are  based on                                                              
the best available  scientific information.   Public discussion of                                                              
the  bill  throughout  the  process   involved  a  wide  range  of                                                              
interests, including  scientists from many fields  and people from                                                              
the   timber  industry,   fishing   industry,  and   environmental                                                              
community.   The "final package"  became HB 131, which  was passed                                                              
by  the Board  of  Forestry in  January.   The  Board of  Forestry                                                              
consists of  representatives from the forest  industry, commercial                                                              
fishing,   environmental   organizations,   Native   corporations,                                                              
professional  foresters,  fish  and  wildlife  biologists,  mining                                                              
organizations, and "recreationists."                                                                                            
                                                                                                                                
MR. JAHNKE  remarked that changes in  HB 131 help ensure  that the                                                              
goals  of  the  FRPA  are met,  which  are  "to  provide  adequate                                                              
protection to fish habitat and water  quality and at the same time                                                              
to  support   the  continuation  of  healthy   timber  in  fishing                                                              
industries in  Alaska."  These changes  also help ensure  that the                                                              
Act continues  to satisfy  the requirements  for non-point  forest                                                              
pollution in  the federal Clean Water  Act as well as  the Coastal                                                              
Zone  Management  Act.    [House   Bill  131]  provides  "one-stop                                                              
shopping" for all of those Acts  including the FRPA for the timber                                                              
industry.                                                                                                                       
                                                                                                                                
MR.  JAHNKE  requested  that Martha  Welbourn-Freeman  go  through                                                              
specific characteristics of  the bill, since she is  the expert on                                                              
HB 131 with regard to technical aspects.                                                                                        
                                                                                                                                
Number 1633                                                                                                                     
                                                                                                                                
MARTHA  WELBOURN-FREEMAN,   Forest  Resources   Program  Manager,                                                               
Division of Forestry, Department  of Natural Resources, testified                                                               
via teleconference.  She  informed listeners that she also served                                                               
as co-chair of the Science and Technical Committee and as co-                                                                   
chair of the Implementation Group.  She gave the following                                                                      
testimony:                                                                                                                      
                                                                                                                                
     I'd  like to  talk  briefly about  the relationship  of                                                                    
     this bill  to the  existing Act  and summarize  the key                                                                    
     provisions in  the bill.   First, I'd like  to say that                                                                    
     this is  not a wholesale  revision of the  [FRPA].  For                                                                    
     many issues,  the Science  and Technical  Committee and                                                                    
     Implementation Group  did not recommend  changes to the                                                                    
     Act or to the  regulations.  The major changes proposed                                                                    
     affect only the  part of the Act  that addresses stream                                                                    
     classification and riparian  management in Region III -                                                                    
     that's Interior Alaska. ...                                                                                                
                                                                                                                                
     In your briefing  packets there's a map  that shows the                                                                    
     three regions  for forest practices.   It also  makes a                                                                    
     minor  change  to the  boundary  between  Region I  and                                                                    
     Region II on the Kenai  Peninsula - and that area shows                                                                    
     up in  red on  your map.   The Interior had  been using                                                                    
     interim  standards for  riparian  management since  the                                                                    
     [FRPA] was revised in 1990.   At that time, we had very                                                                    
     little  specific   information  for   Interior  Alaska.                                                                    
     Under  those standards,  timber harvesting  could occur                                                                    
     up  to the  bank of  the    anadromous  waters  on both                                                                    
     public and private land under certain conditions.                                                                          
                                                                                                                                
     This   bill   classifies  anadromous   and   high-value                                                                    
     resident  fish waters  in  Interior  Alaska into  three                                                                    
     kinds,  and then  it sets  riparian standards  for each                                                                    
     kind.   The first type we  call Type III-A.   These are                                                                    
     non-glacial  waters that  are  wider than  3 feet,  and                                                                    
     they include  glacial backwater  sloughs.   These types                                                                    
     are grouped together  because they're productive waters                                                                    
     for  fisheries   and  because  they   are  temperature-                                                                    
     sensitive and because they "eat" large wooden debris.                                                                      
                                                                                                                                
     On these types  on private land, the  Act establishes a                                                                    
     no-cut  buffer that's  66  feet wide.    The buffer  on                                                                    
     public land is  100 feet.  But harvesting  can occur on                                                                    
     land where 33 feet of  the public land is buffer if the                                                                    
     Department of  Fish & Game concurs  that harvesting can                                                                    
     be  done without  adversely affecting  fish  habitat or                                                                    
     water quality.                                                                                                             
                                                                                                                                
     The second  type, Type III-B,  ... are all  the glacial                                                                    
     waters  except  for   the  glacial  backwater  sloughs.                                                                    
     These types  are not sensitive  to temperature changes,                                                                    
     but  they do  need  large woody  debris  for the  whole                                                                    
     system.   On  these waters  there's a  66-foot riparian                                                                    
     area on  private land and  a 100-foot riparian  area on                                                                    
     public land.  Half  of the riparian area that's closest                                                                    
     to the  stream is a  no-cut buffer.   The landward half                                                                    
     allows  harvesting  of  up  to  half  the  large  white                                                                    
     spruce,  those  over  9  inches  in  diameter,  without                                                                    
     requiring the variations.                                                                                                  
                                                                                                                                
Number 1799                                                                                                                     
                                                                                                                                
MS. WELBOURN-FREEMAN continued, stating:                                                                                        
                                                                                                                                
     So, there can be  some harvests of the high-value trees                                                                    
     in  the  landward  part  of  that buffer.    The  final                                                                    
     type[s]  are small  non-glacial  streams, streams  that                                                                    
     are left  up to 3  feet wide. ...   On these  there's a                                                                    
     special management  area that's 100 feet  wide in which                                                                    
     harvesting may  occur, but  it must be  consistent with                                                                    
     the  maintenance  of   the  sports  fish  and  wildlife                                                                    
     habitat.                                                                                                                   
                                                                                                                                
     The Department  of Fish &  Game and DNR  [Department of                                                                    
     Natural Resources] have pledged  to do more research on                                                                    
     this stream  type.  It's  the stream type  that we know                                                                    
     the least  about. ...   We want  to work on  those this                                                                    
     summer  to determine  the  extent  of their  occurrence                                                                    
     within   commercial  forests   and  to   assess  needed                                                                    
     management measures specific to this (indisc.).                                                                            
                                                                                                                                
     The bill also  makes some other changes.   The first is                                                                    
     that  it changes  the statewide  nomenclature  to water                                                                    
     body  classes to  prevent confusion  between  the water                                                                    
     body types  in different  regions.  Currently,  we call                                                                    
     the  types  in  coastal   regions  [in  Region  I,  for                                                                    
     example] ...  types A,  B, C, and  D.  We  changed that                                                                    
     ... to I-A,  I-B, I-C, and I-D, and  then the types for                                                                    
     the Interior will be III-A,  III-B, and III-C.  It also                                                                    
     moves  the   definitions  of  the   boundaries  between                                                                    
     regions from the regulations to the Act.                                                                                   
                                                                                                                                
     Currently, it's  the regulations that  design the lines                                                                    
     between regions I, II, and  III.  We want to move those                                                                    
     boundaries into  the act.   In doing so,  the bill also                                                                    
     proposes a minor change  to the boundary between Region                                                                    
     I and  Region II on  the Kenai Peninsula.   The revised                                                                    
     boundary better matches  the change between the coastal                                                                    
     forest  type of  Sitka spruce  and Western  hemlock and                                                                    
     the  (indisc.) forest  type that's  dominated  by white                                                                    
     spruce and the (indisc.) hybrid.                                                                                           
                                                                                                                                
     Most forestland in the  area affected by that change is                                                                    
     in   federal  ownership,   primarily  in   the  Chugach                                                                    
     National Forest.   So there will be  very little impact                                                                    
     on  the  landowner.   We  have  reviewed this  proposed                                                                    
     change  with the  other  major landowners  in the  area                                                                    
     including Native  corporations [and the]  mental health                                                                    
        trust in the Kenai Peninsula Borough, and none of                                                                       
     those parties have concerns or doubts of the change.                                                                       
                                                                                                                                
Number 1931                                                                                                                     
                                                                                                                                
REPRESENTATIVE DYSON  referred to  "break in  the land"  and asked                                                              
whether this is a term of art in law.                                                                                           
                                                                                                                                
MS. WELBOURN-FREEMAN  replied  that it  is defined in  regulations                                                              
for the Act.  The slope rate  refers to the change in the angle of                                                              
the slope.                                                                                                                      
                                                                                                                                
REPRESENTATIVE DYSON asked for the definition of "riparian."                                                                    
                                                                                                                                
MS.  WELBOURN-FREEMAN  stated  that riparian  areas  are  specific                                                              
areas defined in the Act.                                                                                                       
                                                                                                                                
REPRESENTATIVE DYSON  wondered if  the riparian  area is  the land                                                              
from the creek to the edge of the regulated area under this bill.                                                               
                                                                                                                                
MS. WELBOURN-FREEMAN confirmed this statement.                                                                                  
                                                                                                                                
REPRESENTATIVE  DYSON asked  what minimum-sized  creek this  would                                                              
apply to.                                                                                                                       
                                                                                                                                
MS. WELBOURN-FREEMAN said  it applies to "all but  waters that ...                                                              
have either anadromous or high-value resident fish."                                                                            
                                                                                                                                
REPRESENTATIVE  KERTTULA  commented  that  she has  always  had  a                                                              
problem with having  a 66-foot buffer for private land  and a 100-                                                              
foot buffer  for public land.   She asked Ms.  Welbourn-Freeman to                                                              
explain the philosophy behind this.                                                                                             
                                                                                                                                
MS. WELBOURN-FREEMAN  explained that  the 66-foot buffer  is based                                                              
on two  factors:  the width  needed to maintain shading  on stream                                                              
types that are sensitive to  temperature (primarily the type III-A                                                              
streams in  the Interior) and large  woody debris.  By  looking at                                                              
the angles of the sun and  typical tree heights, [observers] noted                                                              
that  a width  of 52  to 72  feet  is needed  to maintain  natural                                                              
shading  conditions  and  prevent   temperature  increases.    For                                                              
streams that need large woody debris,  95 percent of the debris is                                                              
retained if  a buffer is maintained  that is about  two-thirds the                                                              
width of the  tree height.  Consequently, 50- to  60- foot buffers                                                              
are needed to maintain large woody debris.  This is where the 66-                                                               
foot buffer comes from.                                                                                                         
                                                                                                                                
REPRESENTATIVE KERTTULA asked  why the private land  buffer is not                                                              
the same amount as the public land buffer [100-feet].                                                                           
                                                                                                                                
MS. WELBOURN-FREEMAN  replied that  on private land  [the Division                                                              
of  Forestry]  is  dealing  with  the  issue  of  balance  between                                                              
protecting the fisheries resource  source and allowing the private                                                              
landowner  to get  full use  of timber  values.   She added,  "The                                                              
difference between  large woody debris  - for example,  between 66                                                              
feet  and 100  feet  - is  only the  difference  between about  95                                                              
percent  of the large  woody debris  being retained  and about  99                                                              
percent being retained."                                                                                                        
                                                                                                                                
MS. WELBOURN-FREEMAN  explained that the other  difference is that                                                              
under the FRPA,  for public land [the Division of  Forestry] has a                                                              
duty  to  look  at  fish, habitat,  and  other  factors  including                                                              
wildlife.    However,  on  private land  [the  division]  is  only                                                              
authorized to address fish and habitat issues and water quality.                                                                
                                                                                                                                
REPRESENTATIVE  KERTTULA asked  Ms.  Welbourn-Freeman whether  she                                                              
has ever been threatened with the "takings case," and if the 66-                                                                
foot buffer should become a 100-foot buffer.                                                                                    
                                                                                                                                
MS.  WELBOURN-FREEMAN  remarked  that   there  has  been  repeated                                                              
discussion  about  this throughout  the  development  of the  FRPA                                                              
since the 1990 revision.                                                                                                        
                                                                                                                                
REPRESENTATIVE  COGHILL said,  "The private  taking could  also be                                                              
challenged."   He referred  to page  3, lines  11-13 [of  HB 131],                                                              
which read:                                                                                                                     
                                                                                                                                
     (2) Along  a Type III-B  water body, harvest  of timber                                                                    
     may  not be  undertaken  within 33  feet  of the  water                                                                    
     body; between 33 feet and  66 feet from the water body,                                                                    
     up to 50 percent  of standing white spruce trees having                                                                    
     at least a  nine-inch diameter at breast  height may be                                                                    
     harvested without requiring a variation;                                                                                   
                                                                                                                                
REPRESENTATIVE COGHILL asked how a 9-inch diameter was decided                                                                  
upon, and how much leeway there is.                                                                                             
                                                                                                                                
Number 2248                                                                                                                     
                                                                                                                                
MS. WELBOURN-FREEMAN explained that a  9-inch diameter on the Type                                                              
III-B [glacial]  water body was  established because of  wanting a                                                              
balance between "allowing  the landowner to get some  of the value                                                              
out  of the  stream  buffers  where there  is  a  lot of  valuable                                                              
timber, but still provide enough  large woody debris to the system                                                              
as a  whole."   The 9-inch  diameter represents  a "rough  cutoff"                                                              
between  the high-value  white spruce  [trees] for  most purposes.                                                              
So the  landowner could take  out half  of the white  spruce trees                                                              
that are over 9 inches in diameter, without requiring a site-                                                                   
specific variation.  She went on to say this is only in the half                                                                
of the buffer away from the stream.                                                                                             
                                                                                                                                
Number 2312                                                                                                                     
                                                                                                                                
JILL KLEIN, Project Manager, Yukon River Drainage Fisheries                                                                     
Association (YRDFA), testified via teleconference:                                                                              
                                                                                                                                
     We  are   a  nonprofit  association   that  works  with                                                                    
     subsistence  and  commercial  salmon fisheries  on  the                                                                    
     Yukon River.   We  were formed  in 1990  when fishermen                                                                    
     and  women  set  up  three  basic  priorities  for  the                                                                    
     association.   These  are to  foster  communication and                                                                    
     cooperation  between the  sources (indisc.)  fishermen,                                                                    
     promote  cooperative management  between  fishermen and                                                                    
     the state,  and to  increase returns of  salmon through                                                                    
     habitat  protection  and  restoration projects  in  the                                                                    
     Yukon River Drainage.                                                                                                      
                                                                                                                                
     YRDFA  has 16  board members  including  commercial and                                                                    
     subsistence fishermen  and women from the  mouth of the                                                                    
     river  to  the Canadian  border.    There  are also  14                                                                    
     alternates, and  we also have a  membership of 200-plus                                                                    
     people in the  Yukon River drainage.   As mentioned, an                                                                    
     implementation  group was  created  to include  various                                                                    
     interests  when making  recommendations  to the  Forest                                                                    
     Resources  and Practices  Act.   YRDFA  was invited  to                                                                    
     participate in  this implementation  group in  order to                                                                    
     represent   fishing  interests   in  the   Yukon  River                                                                    
     Drainage.                                                                                                                  
                                                                                                                                
     Bill  Fleres  (ph),  a  YRDFA  board  member  from  the                                                                    
     village of  Tanana, and Chris Stark,  a YRDFA fisheries                                                                    
     biologist   from   Fairbanks,   as   well   as   myself                                                                    
     participated  in  various  meetings  of  this  process.                                                                    
     YRDFA  would like  to express  support for  the process                                                                    
     and   the    outcome   that   took    place   to   make                                                                    
     recommendations to  the classification of  stream types                                                                    
     and  riparian buffers  for public  and private  land in                                                                    
     Region  III under  the Forest  Resources  and Practices                                                                    
     Act.                                                                                                                       
                                                                                                                                
     House  Bill 131  is good  for both  fishing  and timber                                                                    
     because  it  does  strengthen protection  for  Interior                                                                    
     fish habitat  and does  it in a  way that  is practical                                                                    
     for the timber industry to implement.                                                                                      
                                                                                                                                
Number 2417                                                                                                                     
                                                                                                                                
NANCY FRESCO, Northern Alaska Environmental Center, testified via                                                               
teleconference:                                                                                                                 
                                                                                                                                
     I,  too,  was  part  of  the  implementation  committee                                                                    
     that's  already  been  mentioned,  that  took  part  in                                                                    
     putting  together  the  legislation  that you  now  see                                                                    
     before you.   And  I'm also here  to voice  support for                                                                    
     both the  outcome and the  process.  While  in our task                                                                    
     of   representing   environmental   concerns   in   the                                                                    
     Interior,  we  certainly   feel  that  there  are  many                                                                    
     habitat  issues   at  stake   that  may  come   up  for                                                                    
     discussion in the future.   We believe that the process                                                                    
     was sound in this case for several reasons.                                                                                
                                                                                                                                
     First,   as   Marty    Welbourn-Freeman   has   already                                                                    
     described, there was sound science  behind it.  ...  It                                                                    
     was  examined  in detail  by  a  science and  technical                                                                    
     committee with full literature  review as well as local                                                                    
     information  and some  on-the-ground work.    There was                                                                    
     also a public process.  ... The meetings of the science                                                                    
     and  technical [committee]  were  open  to the  public.                                                                    
     And  then   there  was  good  effort   to  include  all                                                                    
     stakeholders within  the implementation group;  ... all                                                                    
     work  within that  group was  done with  a  view toward                                                                    
     consensus, and  all decisions were made  on a consensus                                                                    
     basis.                                                                                                                     
                                                                                                                                
     Also, as mentioned, there  will be follow-through, both                                                                    
     this  summer when  the  smaller  stream categories  are                                                                    
     revisited jointly  by the  Division of Forestry  and by                                                                    
     [the Department  of] Fish  & Game, and  also continuing                                                                    
     into  the  future as  DNR  continues  to  look at  such                                                                    
     issues  as glacier  water bodies,  large  woody debris,                                                                    
     the changing  dynamics of  the Tanana  River floodplain                                                                    
     and other continuing studies.                                                                                              
                                                                                                                                
Number 2554                                                                                                                     
                                                                                                                                
CHRIS STARK testified via teleconference:                                                                                       
                                                                                                                                
     My background  is ...  juvenile fisheries research.   I                                                                    
     have [a]  research-associate position at  University of                                                                    
     Alaska Fairbanks.   I  do piecework  for YRDFA  and for                                                                    
     Bering  Sea Fishermen's  Association, and  I  also hold                                                                    
     the  environmental   seat  on  the   local  fishermen's                                                                    
     advisory committee.                                                                                                        
                                                                                                                                
     I'd just  like to  encourage you to  go ahead  and pass                                                                    
     this as is.  It  is, again, based on very good science.                                                                    
     Albeit  we're  a little  shy  on  extensive science  up                                                                    
     here, but  from the fisheries standpoint,  I think this                                                                    
     is  as  good as  we're  going  to  get  it.   From  the                                                                    
     environmental  community,  I  believe that's  the  case                                                                    
     again.  And I believe  this is a workable situation for                                                                    
     the forestry folks as well.                                                                                                
                                                                                                                                
Number 2583                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL asked if  this bill would help with access                                                               
issues  involving  fish counts  on  streams,  in particular  weir                                                               
counts on the Kuskokwim River.                                                                                                  
                                                                                                                                
MR. STARK answered  no, explaining that YRDFA  and the Bering Sea                                                               
Fishing Association  do have  numerous fish  counts.   This won't                                                               
really make any  difference at all in that  situation.  What this                                                               
is  doing is  enhancing juvenile  habitat -  large  woody debris.                                                               
Some  of  the research  recently  done  in  Tanana [proves]  it's                                                               
really wood that provides energy.                                                                                               
                                                                                                                                
Number 2648                                                                                                                     
                                                                                                                                
LARRY SMITH testified via teleconference:                                                                                       
                                                                                                                                
     These are  modest but very welcome  standards.  They've                                                                    
     been a long time coming.   In the 1990 Forest Practices                                                                    
     Act statutory  changes, these  kind of  provisions were                                                                    
     ordered by the  legislature to occur by  1991 - and not                                                                    
     just for this  Region III, but for all  of Region II as                                                                    
     well.  But like the  Region I improvements, in the 1990                                                                    
     legislation they're  often an  illusion because  of the                                                                    
     lack  of appetite  and ability  of agencies  to enforce                                                                    
     the standards.                                                                                                             
                                                                                                                                
     One should  never underestimate, as well,  the power of                                                                    
     the  variation clause  in the  Forest Practices  Act to                                                                    
     undo the  so-called no-cut buffers.   The situation has                                                                    
     not changed  much, in my  view, from what  was reported                                                                    
     to  the Board  of Forestry  and to  the  legislature in                                                                    
     1995 by the  [Alaska] Department of Fish  & Game.  That                                                                    
     report is still to the  point, and it says, and this is                                                                    
     a quote, "ADFG  staff are uniformly of  the belief that                                                                    
     the implementation of  the Forest Practices Act remains                                                                    
     seriously  deficient.   We  simply do  not provide  the                                                                    
     level  of protection  originally envisioned.    This is                                                                    
     particularly true for fish habitat in riparian areas."                                                                     
                                                                                                                                
     As  the  budget to  fix  these  problems  has not  been                                                                    
     provided to  the three agencies  with responsibility to                                                                    
     enforce the  Forest Practices  Act, I hope  the fishery                                                                    
     committee   members  will   be  advocates   for  better                                                                    
     monitoring  budget  and  provide active  oversight  for                                                                    
     implementation.                                                                                                            
                                                                                                                                
     Jeff  Jahnke and  Marty Freeman  need your  support for                                                                    
     their forest practices budget.   Fish & Game needs your                                                                    
     support and  so does  DEC [Department  of Environmental                                                                    
     Conservation]     for      its     forest     practices                                                                    
     responsibilities  or  additional  funding needs  to  be                                                                    
     provided to  the Department of  Fish & Game  to take on                                                                    
     DEC's  water quality  duties.   They  have pretty  much                                                                    
     withdrawn from the woods except on federal lands. ...                                                                      
                                                                                                                                
     To conclude,  let me ask  you to please  not forget the                                                                    
     part  of  the  state  that  still  doesn't  have  these                                                                    
     standards; ... that's  around Cook Inlet, that's around                                                                    
     Anchorage, that's the  Mat-Su Valley, that's the Copper                                                                    
     River Valley.  All those  other lands that are south of                                                                    
     the  Alaska Range,  ... north  of Region  I,  need this                                                                    
     kind of attention, and real enforcement.                                                                                   
                                                                                                                                
CO-CHAIR WILSON asked Mr. Smith if he was representing himself                                                                  
or an organization.                                                                                                             
                                                                                                                                
MR. SMITH replied that he was representing himself.  He stated                                                                  
that until 1990, he was active in revising statewide provisions                                                                 
for the Forest Practices Act.                                                                                                   
                                                                                                                                
Number 2838                                                                                                                     
                                                                                                                                
JERRY McCUNE, United Fishermen of Alaska (UFA), came forth and                                                                  
stated:                                                                                                                         
                                                                                                                                
     I watched  the Board of  Forestry ... for  the last ten                                                                    
     years as  a commercial fisherman  out of Cordova.   And                                                                    
     you have  to understand,  this is an  agreement between                                                                    
     all the  [industries]. ...   The forest industry  is at                                                                    
     the   table,   and   commercial   fishermen   and   the                                                                    
     conservationists and everyone  come to these agreements                                                                    
     on the  best available  science for these  regions. ...                                                                    
     They've been  going through  the whole state,  and this                                                                    
     is just one part we passed  two years ago. ... So, this                                                                    
     is the same thing.                                                                                                         
                                                                                                                                
     The recommendations  from the  Board of  Forestry, from                                                                    
     industry and  all other  parties including  the public,                                                                    
     based   on   scientific   information,  is   the   best                                                                    
     scientific information  for forestry  practices without                                                                    
     going into the whole  Forest Practices Act, which we do                                                                    
     want to do.                                                                                                                
                                                                                                                                
Number 2911                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL referred to  what Mr. McCune alluded to as                                                               
the best possible science and  asked Mr. McCune whether he thinks                                                               
this allows  for expansion  of upcoming  science, and  whether it                                                               
puts good parameters around it.                                                                                                 
                                                                                                                                
MR.  McCUNE  responded that  he  imagines  there  could be  other                                                               
science as  well as  other practices that  come to light  such as                                                               
helicopter  logging, which  saves  on building  roads.   It  most                                                               
likely would go to the Board of Forestry and be "kicked" around.                                                                
                                                                                                                                
CO-CHAIR WILSON  pointed out that  in the committee  packets there                                                              
are  letters  from  the  Alaska  Forest  Association,  the  Alaska                                                              
Society  of  American  Foresters,  and  the  Resource  Development                                                              
Council for Alaska in favor of the bill.                                                                                        
                                                                                                                                
TAPE 01-12, SIDE B                                                                                                              
Number 2965                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SCALZI  made  a  motion  to move  HB  131  out  of                                                              
committee  with individual  recommendations  and the  accompanying                                                              
fiscal notes.   There being  no objection,  HB 131 was  moved from                                                              
the House Special Committee on Fisheries.                                                                                     
                                                                                                                                
TERM EXPIRATION DATE FOR  BRUCE TWOMLEY, COMMISSIONER, COMMERCIAL                                                             
FISHERIES ENTRY COMMISSION                                                                                                    
                                                                                                                                
Number 2916                                                                                                                     
                                                                                                                                
CO-CHAIR WILSON announced that the  committee needed to change the                                                              
expiration date for the appointment  of Commissioner Bruce Twomley                                                              
to  the Commercial  Fisheries Entry  Commission,  from 7/01/04  to                                                              
3/01/05.                                                                                                                        
                                                                                                                                
CO-CHAIR STEVENS made a motion to  change the term expiration date                                                              
to 3/01/05.  There being no objection, it was so ordered.                                                                       
                                                                                                                                
LETTER TO THE DEPARTMENT OF PUBLIC SAFETY RE:  POACHING                                                                       
                                                                                                                                
Number 2863                                                                                                                     
                                                                                                                                
CO-CHAIR  WILSON announced  that the  committee would  discuss the                                                              
letter  to  the  Department of  Public  Safety  about  enforcement                                                              
concerns   relating  to   fisheries  in   Southeast  Alaska   [and                                                              
elsewhere].  She  read the first paragraph of  the two-page letter                                                              
[original punctuation provided]:                                                                                                
                                                                                                                                
     It has  been brought to  our attention as  co-chairs of                                                                    
     the  House Resources  Committee  and  co-chairs of  the                                                                    
     House  Fisheries Committee  that  the illegal  poaching                                                                    
     during  the  2000  Southeast  commercial  salmon  seine                                                                    
     season  was  at  an  all-time  high  in  closed  areas.                                                                    
     Transgressions  included  stealing  at  night,  setting                                                                    
     early, and fishing over  markers.  These transgressions                                                                    
     were  observed by  a number  of fishermen  who  wish to                                                                    
     increase the enforcement before the year-2001 season.                                                                      
                                                                                                                                
REPRESENTATIVE KERTTULA  suggested deleting, from  paragraph 3 of                                                               
the  letter,  "Although fisherman  have  told  us  that they  are                                                               
willing   to   pay  a   small   assessment   to  fund   increased                                                               
enforcement,".  The paragraph  would then begin, "The presence of                                                               
the enforcement at times  throughout the season should not create                                                               
a fiscal impact.  It will,  however, be an important deterrent to                                                               
illegal  fishing activities."   Then  she suggested  deleting the                                                               
period, adding a comma, and "as  would an increase in fine."  She                                                               
said  it  is  her  understanding  that most  fishermen  would  be                                                               
willing  to see  an increase  in  fines in  order to  see  a true                                                               
deterrent.                                                                                                                      
                                                                                                                                
REPRESENTATIVE KERTTULA  referred to  the last  paragraph, second                                                               
sentence,  which  read in  part,  "Albert  Hofstad (772-3880),  a                                                               
long-time   Petersburg  fisherman   who   is  representing   area                                                               
fishermen".  She said she  doesn't know how broad that really is,                                                               
and therefore  suggested it  should read, "Albert  Hofstad [(772-                                                               
3880)], a long-time Petersburg fisherman."                                                                                      
                                                                                                                                
Number 2699                                                                                                                     
                                                                                                                                
JERRY McCUNE, United  Fishermen of Alaska (UFA),  stated that his                                                               
only objection  would be  the increase in  fines.  He  said [UFA]                                                               
went over this four years  ago, and has finally "hammered out" an                                                               
enforcement  bill, which  took  two years.    In that  bill  is a                                                               
provision for a  point system whereby a person  could lose his or                                                               
her  license  for   a  year  after  receiving   12  points.    To                                                               
Representative Kerttula's  second suggestion, he  said he doesn't                                                               
have any problem with it, as long as [Albert Hofstad] doesn't.                                                                  
                                                                                                                                
REPRESENTATIVE  KERTTULA   stated  that  she   would  remove  her                                                               
suggestion about Albert Hofstad.                                                                                                
                                                                                                                                
CO-CHAIR   STEVENS   referred    to   Representative   Kerttula's                                                               
suggestion that  removes the  first sentence  [of paragraph  3 of                                                               
the  letter],  which  talks  about  a small  assessment  to  fund                                                               
increased  assessment.   He asked  Mr. McCune  whether,  with his                                                               
opposition  to the  fines, he  is suggesting  a  small assessment                                                               
would be appropriate.                                                                                                           
                                                                                                                                
MR. McCUNE  responded that  there is already  a point  system, as                                                               
well  as a  fine system,  in place.   Most  fines  are up  to the                                                               
judge.                                                                                                                          
                                                                                                                                
CO-CHAIR STEVENS remarked  that in the end, he  thinks if "we" do                                                               
the job  well, there  shouldn't be any  fines.   Therefore, there                                                               
wouldn't  be any  funds  coming  in to  pay  for this  additional                                                               
enforcement.   He referred to  language in the  letter, "Although                                                               
fisherman  have told  us that  they are  willing to  pay  a small                                                               
assessment to fund  increased enforcement"; he said  it refers to                                                               
fines or  a separate  type of funding  arrangement.   He observed                                                               
that Mr.  McCune had  said he  doesn't like  the change,  but the                                                               
change takes out that small assessment.                                                                                         
                                                                                                                                
MR. McCUNE  responded that this  is talking about  10,000 people.                                                               
Most fishermen don't  want to pay an  assessment for enforcement,                                                               
but the state should.                                                                                                           
                                                                                                                                
Number 2462                                                                                                                     
                                                                                                                                
CO-CHAIR WILSON  asked whether  the will  of the committee  is to                                                               
take the first part of that sentence out or to leave it in.                                                                     
                                                                                                                                
REPRESENTATIVE SCALZI  stated that  he would  move to  strike the                                                               
first sentence up to the comma.   He added that he doesn't recall                                                               
that  being in  the  intent  of the  letter,  because he  doesn't                                                               
recall  fishermen  saying  they  were  willing  to  pay  a  small                                                               
assessment.                                                                                                                     
                                                                                                                                
Number 2398                                                                                                                     
                                                                                                                                
REPRESENTATIVE   KERTTULA  withdrew   her  first   amendment  and                                                               
suggested deleting the first sentence  [of paragraph 3] up to the                                                               
second line after "enforcement".   Therefore, the paragraph would                                                               
read:                                                                                                                           
                                                                                                                                
     The  presence of  the enforcement  at  times throughout                                                                    
     the  season should  not  create a  fiscal  impact.   It                                                                    
     will,  however, be  an important  deterrent  to illegal                                                                    
     fishing activities.                                                                                                        
                                                                                                                                
REPRESENTATIVE  KERTTULA,  in response  to  a question  regarding                                                               
whether  the second  sentence  would then  make sense,  suggested                                                               
asking the department.                                                                                                          
                                                                                                                                
REPRESENTATIVE DYSON  remarked that  he doesn't think  taking the                                                               
first part out matters that much.  He explained:                                                                                
                                                                                                                                
     This is just  a letter.  It is  fairytale to think that                                                                    
     increased  enforcement doesn't  cost something.  ... In                                                                    
     fact,  there isn't  enough  money  for the  enforcement                                                                    
     that   we  need   in  most   of   Alaska's  competitive                                                                    
     fisheries.   And it's  an issue we  need to  address at                                                                    
     some point. ... Taking  the fine thing was wise because                                                                    
     we can't  and shouldn't even imply  that ... collection                                                                    
     of fines is going to offset the cost of enforcement.                                                                       
                                                                                                                                
REPRESENTATIVE  KERTTULA agreed  with Representative  Dyson.   To                                                               
get rid  of the  "fairytale," she suggested  as Amendment  1 that                                                               
paragraph 3 should read:                                                                                                        
                                                                                                                                
     The  presence of  the enforcement  at  times throughout                                                                    
     the season  will be  an important deterrent  to illegal                                                                    
     fishing activities.                                                                                                        
                                                                                                                                
CO-CHAIR WILSON announced  that there being no  objection, it was                                                               
so ordered.                                                                                                                     
                                                                                                                                
Number 2153                                                                                                                     
                                                                                                                                
EDWARD  C. FURMAN  came forth  on  behalf of  the  fishermen from                                                               
Cordova.  He stated:                                                                                                            
                                                                                                                                
     I  saw  many  fishermen  come  into  the  courtroom  in                                                                    
     Cordova and  be treated unfair,  because they [weren't]                                                                    
     tried  by jurors.   Why  is  it that  these  men aren't                                                                    
     allowed to have  a jury trial?  Why  is the legislature                                                                    
     asleep when the constitution  says that if you're fined                                                                    
     over  $200, you  shall have  a  jury trial?    The U.S.                                                                    
     Constitution  [says that]  over  $20 it  is  up to  ...                                                                    
     legislators to vote  that in.  These men,  who a lot of                                                                    
     them are poor, they can't afford to pay these fines.                                                                       
                                                                                                                                
REPRESENTATIVE DYSON  remarked that  he thought if  [a fisherman]                                                               
demands a [jury trial], he or she could have one.                                                                               
                                                                                                                                
REPRESENTATIVE KERTTULA stated that  she doesn't know if there is                                                               
a special statute for fishing violations.                                                                                       
                                                                                                                                
MR. McCUNE  explained that there has  to be a burden  of proof in                                                               
fishing  violations.    It  has   been  said  that  it  might  be                                                               
challenged; however,  it hasn't yet.   It gets  very complicated,                                                               
he  said.   For example,  if [a  fisherman] said  he or  she fell                                                               
asleep   and  went   over  the   line,  it   is   different  from                                                               
intentionally going over  the line.  Another glitch  is this:  if                                                               
a [fisherman] leases his or her  permit and the person to whom it                                                               
is leased gets a violation, it goes on the owner's permit.                                                                      
                                                                                                                                
REPRESENTATIVE KERTTULA suggested it  might be worthwhile to have                                                               
the Department  of Law testify on  this.  She added  that it does                                                               
depend  on whether  it  is  a civil  or  criminal  penalty.   She                                                               
thanked Mr.  Furman for  testifying and  said it  is an  honor to                                                               
have a fisherman from Cordova present.                                                                                          
                                                                                                                                
Number 1859                                                                                                                     
                                                                                                                                
REPRESENTATIVE  DYSON [made  a  motion to  adopt  the letter,  as                                                               
amended].  There being no objection, it was so ordered.                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special  Committee on  Fisheries  meeting was  adjourned  at 6:20                                                               
p.m.                                                                                                                            

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