Legislature(1997 - 1998)

03/09/1998 01:10 PM House JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         HOUSE JUDICIARY STANDING COMMITTEE                                    
                   March 9, 1998                                               
                     1:10 p.m.                                                 
                                                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Representative Joe Green, Chairman                                             
Representative Con Bunde, Vice Chairman                                        
Representative Brian Porter                                                    
Representative Norman Rokeberg                                                 
Representative Jeannette James                                                 
Representative Eric Croft                                                      
Representative Ethan Berkowitz                                                 
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
All members present                                                            
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
HOUSE JOINT RESOLUTION NO. 47                                                  
Proposing amendments to the Constitution of the State of Alaska                
relating to the nomination, selection, appointment, and public                 
approval or rejection of justices of the supreme court and of                  
judges of courts established by the legislature that have as an                
exclusive purpose the exercise of appellate jurisdiction over                  
judicial acts and proceedings, and requiring legislative                       
confirmation of those justices and judges and of the appointed                 
members of the judicial council.                                               
                                                                               
     - MOVED HJR 47 OUT OF COMMITTEE                                           
                                                                               
HOUSE BILL NO. 406                                                             
"An Act relating to subsistence uses of fish and game."                        
                                                                               
     - HEARD AND HELD                                                          
                                                                               
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 49                                       
"An Act establishing and relating to a consumer protection section             
in the Department of Law; increasing penalties for violation of                
laws relating to consumer protection; requiring special accounting             
for money from certain actions related to consumer protection; and             
providing for an effective date."                                              
                                                                               
     - MOVED CSSSHB 49(L&C) OUT OF COMMITTEE                                   
                                                                               
SENATE BILL NO. 195                                                            
"An Act relating to common law liens, to remedies, costs, and fees             
imposed for the registration, filing, or recording of certain                  
nonconsensual common law liens, and to penalties for recording                 
common law liens."                                                             
                                                                               
     - SCHEDULED BUT NOT HEARD                                                 
                                                                               
(* First public hearing)                                                       
                                                                               
PREVIOUS ACTION                                                                
                                                                               
BILL:  HJR 47                                                                  
SHORT TITLE: CONST AM: APPELLATE JUDGES                                        
SPONSOR(S): REPRESENTATIVES(S) COWDERY, Phillips, Green,                       
Rokeberg, Ryan, Kohring, Ogan, Vezey                                           
                                                                               
Jrn-Date    Jrn-Page           Action                                          
 1/16/98      2060     (H)  READ THE FIRST TIME - REFERRAL(S)                  
 1/16/98      2061     (H)  JUDICIARY, FINANCE                                 
 1/20/98      2092     (H)  COSPONSOR(S): GREEN, ROKEBERG, RYAN                
 1/28/98      2166     (H)  COSPONSOR(S): KOHRING                              
 2/20/98               (H)  JUD AT  1:00 PM CAPITOL 120                        
 2/20/98               (H)  MINUTE(JUD)                                        
 2/20/98      2389     (H)  COSPONSOR(S): OGAN, VEZEY                          
 3/04/98               (H)  MINUTE(JUD)                                        
                                                                               
BILL:  HB 406                                                                  
SHORT TITLE: SUBSISTENCE USES OF FISH AND GAME                                 
SPONSOR(S): RESOURCES                                                          
                                                                               
Jrn-Date    Jrn-Page           Action                                          
 2/12/98      2312     (H)  READ THE FIRST TIME - REFERRAL(S)                  
 2/12/98      2312     (H)  RESOURCES, JUDICIARY, FINANCE                      
 2/17/98               (H)  RES AT  1:00 PM CAPITOL 124                        
 2/17/98               (H)  MINUTE(RES)                                        
 2/21/98               (H)  RES AT  1:00 PM CAPITOL 124                        
 2/21/98               (H)  MINUTE(RES)                                        
 2/24/98               (H)  RES AT  1:00 PM CAPITOL 124                        
 2/24/98               (H)  MINUTE(RES)                                        
 2/27/98               (H)  JUD AT  1:00 PM CAPITOL 120                        
 2/27/98               (H)  MINUTE(JUD)                                        
 2/28/98               (H)  RES AT  9:00 AM CAPITOL 124                        
 2/28/98               (H)  MINUTE(RES)                                        
 3/03/98               (H)  RES AT  1:00 PM CAPITOL 124                        
 3/03/98               (H)  MINUTE(RES)                                        
 3/04/98               (H)  JUD AT  1:00 PM CAPITOL 120                        
 3/04/98               (H)  MINUTE(JUD)                                        
 3/05/98               (H)  RES AT  1:00 PM CAPITOL 124                        
 3/05/98               (H)  MINUTE(RES)                                        
 3/06/98               (H)  JUD AT  1:00 PM CAPITOL 120                        
 3/06/98               (H)  MINUTE(JUD)                                        
 3/06/98      2538     (H)  RES RPT  CS(RES)NT 3DP 1DNP 1NR 3AM                
 3/06/98      2539     (H)  DP: DYSON, GREEN, OGAN; DNP: JOULE;                
 3/06/98      2539     (H)  NR: BARNES; AM: MASEK, WILLIAMS,                   
                            HUDSON                                             
 3/06/98      2539     (H)  2 ZERO FISCAL NOTES (F&G, LAW)                     
 3/09/98               (H)  JUD AT  1:00 PM CAPITOL 120                        
                                                                               
BILL:  HB 49                                                                   
SHORT TITLE: CONSUMER PROTECT.: DIVISION & PENALTIES                           
SPONSOR(S): REPRESENTATIVES(S) CROFT, Hudson                                   
                                                                               
Jrn-Date    Jrn-Page           Action                                          
 1/13/97        40     (H)  PREFILE RELEASED 1/3/97                            
 1/13/97        40     (H)  READ THE FIRST TIME - REFERRAL(S)                  
 1/13/97        40     (H)  LABOR & COMMERCE, JUDICIARY, FINANCE               
 3/26/97       849     (H)  SPONSOR SUBSTITUTE INTRODUCED-                     
                            REFERRALS                                          
 3/26/97       849     (H)  LABOR & COMMERCE, JUDICIARY, FINANCE               
 1/30/98      2189     (H)  COSPONSOR(S): HUDSON                               
 2/18/98               (H)  L&C AT  3:15 PM CAPITOL 17                         
 2/18/98               (H)  MINUTE(L&C)                                        
 2/20/98      2378     (H)  L&C RPT  CS(L&C) 5DP 1NR                           
 2/20/98      2379     (H)  DP: ROKEBERG, HUDSON, KUBINA, BRICE,               
 2/20/98      2379     (H)  COWDERY; NR: RYAN                                  
 2/20/98      2379     (H)  FISCAL NOTE (LAW)                                  
 2/20/98      2379     (H)  REFERRED TO JUD                                    
 3/09/98               (H)  JUD AT  1:00 PM CAPITOL 120                        
                                                                               
WITNESS REGISTER                                                               
                                                                               
REPRESENTATIVE SCOTT OGAN                                                      
Alaska State Legislature                                                       
Capitol Building, Room 128                                                     
Juneau, Alaska  99801                                                          
Telephone:  (907) 465-3878                                                     
POSITION STATEMENT:  As co-chair of House Resources Standing                   
                     Committee, sponsor of HB 406, explained CSHB
                     406(RES) and answered questions.                          
                                                                               
GEORGE UTERMOHLE, Attorney                                                     
Legislative Legal and Research Services                                        
Legislative Affairs Agency                                                     
130 Seward Street, Suite 409                                                   
Juneau, Alaska  99801                                                          
Telephone:  (907) 465-2450                                                     
POSITION STATEMENT:  Answered questions regarding CSHB 406(RES).               
                                                                               
STEVE CONN, Executive Director                                                 
Alaska Public Interest Research Group                                          
P.O. Box 101093                                                                
Anchorage, Alaska 99510                                                        
Telephone:  (907) 274-0730                                                     
POSITION STATEMENT:  Testified on CSSSHB 49(L&C).                              
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 98-33, SIDE A                                                             
Number 0001                                                                    
                                                                               
CHAIRMAN JOE GREEN called the House Judiciary Standing Committee               
meeting to order at 1:10 p.m.  Members present at the call to order            
were Representatives Green, Bunde, Porter, Rokeberg and James.                 
Representatives Croft and Berkowitz arrived at 1:10 p.m. and 1:11              
p.m., respectively.                                                            
                                                                               
HJR 47 - CONST AM: APPELLATE JUDGES                                            
                                                                               
Number 0048                                                                    
                                                                               
CHAIRMAN GREEN announced the first item of business would be HJR
47, proposing amendments to the Constitution of the State of Alaska            
relating to the nomination, selection, appointment, and public                 
approval or rejection of justices of the supreme court and of                  
judges of courts established by the legislature that have as an                
exclusive purpose the exercise of appellate jurisdiction over                  
judicial acts and proceedings, and requiring legislative                       
confirmation of those justices and judges and of the appointed                 
members of the judicial council.                                               
                                                                               
CHAIRMAN GREEN advised members there had been a request to vote on             
the resolution.  He asked whether there were any questions first.              
                                                                               
Number 0086                                                                    
                                                                               
REPRESENTATIVE NORMAN ROKEBERG made a motion to take up and move               
HJR 47 out of committee, with individual recommendations and any               
attached fiscal notes.                                                         
                                                                               
CHAIRMAN GREEN asked whether there was any objection to taking it              
up; none was heard.  He then asked whether there was any objection             
to moving it.                                                                  
                                                                               
Number 0116                                                                    
                                                                               
REPRESENTATIVE ERIC CROFT objected.  He requested an at-ease.                  
                                                                               
CHAIRMAN GREEN called an at-ease at 1:11 p.m.  He called the                   
meeting back to order at 1:12 p.m.                                             
                                                                               
Number 0173                                                                    
                                                                               
CHAIRMAN GREEN requested a roll call vote.  Voting to move HJR 47              
from committee was Representative Rokeberg; voting to move it but              
with the understanding that their votes were no indication of                  
further support were Representatives Bunde and Green; and voting to            
move it with a "reluctant yes" was Representative Porter.  Voting              
against it were Representatives James, Berkowitz and Croft.                    
Therefore, HJR 47 moved from the House Judiciary Standing Committee            
by a vote of 4-3.                                                              
                                                                               
HB 406 - SUBSISTENCE USES OF FISH AND GAME                                     
                                                                               
Number 0321                                                                    
                                                                               
CHAIRMAN GREEN announced that next the committee would take up HB
406, "An Act relating to subsistence uses of fish and game."  He               
called upon Representative Ogan to lead the committee through CSHB
406(RES).  He noted that five sites were on teleconference, and he             
expressed hope that the committee would have time to hear from                 
those testifiers.                                                              
                                                                               
Number 0353                                                                    
                                                                               
REPRESENTATIVE SCOTT OGAN, co-chair of House Resources Standing                
Committee, sponsor of HB 406, came before the committee to present             
the bill.  He told members he had listened closely to more than 100            
hours of public testimony since the Governor introduced the task               
force plan in mid-summer; he had also listened to more than 20                 
hours of testimony from Administration officials who support the               
Governor's position.  He has concluded there are significant                   
differences between what the public has been led to believe about              
subsistence and what the Administration is really trying to                    
achieve.                                                                       
                                                                               
REPRESENTATIVE OGAN stated, "House Bill 406, I believe, is based on            
what the public indicated they support about subsistence.  The                 
public indicates only people who need it should get a preference.              
The public thinks such a preference should kick in only when                   
there's a true shortage of the resources, and that such shortage               
should be substantiated with biological evidence.  The public does             
not support any commercial use of subsistence resources.  I believe            
the public wants true management of fish and game back, not                    
management through federal court oversight or Secretary of Interior            
oversight, at his whim, which is, by the way, what we would get if             
we adopted the other plan."                                                    
                                                                               
Number 0407                                                                    
                                                                               
REPRESENTATIVE OGAN said the public does not support changing                  
Alaska's constitution if the federal law is in conflict and not                
constitutional according to the Alaska constitution.  Nor does the             
public know what rights or uses they might have to give up to                  
satisfy the Alaska National Interest Lands Conservation Act                    
(ANILCA).  Representative Ogan referred to equal protection rights.            
He indicated that while on the surface a rural priority may appear             
acceptable to some, he is against amending the constitution to                 
create different classes of people.  He suggested a rural priority             
would be an irrational preference, and it would not provide the                
healing as a state that he believes is necessary.                              
                                                                               
REPRESENTATIVE OGAN told members the public also does not know that            
sustained yield, without a definition, does not necessarily mean               
there will be resources available for human harvest.  The bill was             
drafted to address all these points in the most forthright, public             
manner possible.  He stated, "By placing the measure before the                
voters, they, and not the politicians, will have the final word on             
whether an Alaskan in-state solution is acceptable."                           
                                                                               
REPRESENTATIVE OGAN said as a further safeguard, HB 406 does not go            
into effect until ANILCA is amended, and rural residents can be                
secure in knowing that both a majority of voters and Congress must             
agree before any changes are made to the present system of                     
subsistence administration.  He stated, "Finally, I think we should            
all recognize that no changes to equal protection rights should be             
permitted to go on the ballot."  He then referred to a court case              
that he believes is in Colorado, relating to the inability of                  
persons to vote away equal protection rights.                                  
                                                                               
Number 0616                                                                    
                                                                               
REPRESENTATIVE OGAN concluded his opening remarks:  "Before we try             
to satisfy ANILCA, we must be aware that if it requires a dilution             
of the equal protection, it very well could be tossed out by our               
courts.  We must make every effort to educate ... both ourselves               
and the public in what our legal obligations are, and what we ...              
can and cannot do within those parameters."  He offered to go                  
through the bill.                                                              
                                                                               
REPRESENTATIVE OGAN described Section 1, findings and intent, as               
fairly self-explanatory.  He read from subsection (a)(1):  "the                
ability to take fish and game for personal and family use for                  
sustenance is a fundamental right under the Constitution of the                
State of Alaska."  He explained that he had been looking for some              
common ground with the Alaska Federation of Natives (AFN), which               
has as a guiding principle that subsistence is a basic human right.            
He told members he believes basic human rights or fundamental                  
rights apply equally to all people, and they are not severable or              
subject to a vote.                                                             
                                                                               
Number 0695                                                                    
                                                                               
REPRESENTATIVE OGAN continued with Section 1, subsection (a)(2),               
which read, "the common use clause of the Constitution of the State            
of Alaska imposes on the state a trust duty to manage the fish,                
game, and water resources of the state for the benefit of all the              
people".  He said there had been a most informative hearing on the             
public trust doctrine in the previous committee; there is a lot of             
case law on the public trust doctrine, which he believes shows it              
is traditionally a state's right to manage fish and game.  He                  
provided oil as an example, saying that like fish and game, oil is             
an asset in the public trust; the permanent fund dividend                      
represents the people's common ownership, and earnings from that               
are paid to each citizen of the state.  He said just as the U.S.               
Supreme Court has ruled that the state cannot discriminate with                
that public trust asset based on how long someone has lived in                 
Alaska, he believes the state should not and cannot discriminate               
with another public trust asset, fish and game, based on where a               
person lives in the state.                                                     
                                                                               
Number 0801                                                                    
                                                                               
REPRESENTATIVE OGAN briefly mentioned subsection (a)(3), which                 
read, "the harvest of fish and game for personal and family use for            
sustenance is the highest and best use of fish and game".  He then             
referred to (a)(4) and said they had taken some language from the              
Hickel task force, trying to recognize the importance of                       
traditional, social and cultural relationships that both Native and            
non-Native people have to hunting and fishing.  In (a)(5), it says             
although these customs, traditions and beliefs vary, Alaskans have             
a lot of these issues in common.                                               
                                                                               
REPRESENTATIVE OGAN referred to Section 2, subsection (a), which               
says the harvest of fish and game for personal and family use for              
sustenance is the highest and best use of fish and game.  He said              
he had recently had occasion to travel around the state with the               
House Special Committee on Fisheries, for hearings on another bill             
relating to whether the legislature would allocate a resource.  He             
had heard repeatedly from commercial fisheries interests that they             
had no problem with Alaska residents getting what they need to feed            
their families, and that it should be the priority use.                        
Representative Ogan stated that the resource does belong to Alaska             
residents.                                                                     
                                                                               
Number 0898                                                                    
                                                                               
REPRESENTATIVE OGAN advised members that Section 2, subsection (b),            
is probably the most important portion of the bill.  It read, "If              
the Board of Fisheries or the Board of Game determines that the                
projected level of harvest of a fish stock or game population in an            
area would exceed the sustainable level of harvest under the                   
sustained yield principle, the appropriate board shall allocate,               
notwithstanding AS 16.05.251(e), the harvestable portion of the                
stock or population in that area among user groups in accordance               
with a ranking of beneficial uses of the stock or population that              
assigns the highest preference to consumptive use for personal and             
family use for sustenance."                                                    
                                                                               
REPRESENTATIVE OGAN Ogan explained that in times of shortage, the              
boards will allocate a percentage to Alaskans first for feeding                
their families, under the authority of the state constitution,                 
Article VIII, Section 4, sustained yield, which says the use of                
fish and game is subject to preference among beneficial uses.  He              
said he believes case law backs that up, that a preference can be              
subsistence, personal use, or commercial fishing, for example;                 
those are use categories.  He indicated that if the legislature                
directs the board that in times of shortage that is the highest and            
best use, he believes it satisfies the intent, at least, of ANILCA.            
                                                                               
Number 0995                                                                    
                                                                               
REPRESENTATIVE OGAN next referred to page 3, line 10 [stated as                
page 10, line 3], "Sec. 16.16.020.  Dependence on fish and game for            
sustenance."  He noted that in subsection (a) it identifies                    
dependence on fish and game for sustenance, and it instructs the               
boards to jointly define fish and game dependent use areas and set             
up criteria based on 14 points specified in the bill.  He said                 
basically they are trying to determine which areas are truly                   
dependent on fish and game.  On page 4, in subsection (b), if the              
appropriate board, with concurrence of the department, determines              
there is a shortage, the bill allows the board to establish a                  
preference consistent with sustained yield, to reserve a sufficient            
portion of stock or population to provide a reasonable opportunity             
to satisfy the need for fish and game dependent uses of stock or               
population.  Representative Ogan said, "So, in the areas that have             
been identified as having this dependency, and in times of                     
shortage, ... they can do the preference."                                     
                                                                               
Number 1116                                                                    
                                                                               
REPRESENTATIVE OGAN said the criteria have been narrowed down to be            
fairly simple.  One must possesses a $5 resident hunting, trapping             
and sport fishing license under AS 16.05.340(a)(6); for that, he               
believes a person must be on public assistance or make less than               
less than $8,200.  In addition, one must submit to the regional                
fish and game board a statement claiming to be dependent or                    
claiming to have no alternative means as a result of the absence of            
a cash-based economy or because of a person's decision to adopt a              
fish and game dependent lifestyle.  Representative Ogan suggested              
the latter recognizes social and cultural values, and he noted that            
the bill outlines a way to appeal that, primarily at the regional              
level; he indicated he would address the regional boards later,                
expressing the desire that the main boards of fish and game do not             
turn into hearing forums for these disputes, which he believes                 
should be settled locally, then forwarded to the boards for                    
approval.                                                                      
                                                                               
Number 1224                                                                    
                                                                               
REPRESENTATIVE OGAN discussed the definitions section on page 6,               
which includes definitions of "preference," "principle,"                       
"reasonable opportunity," "shortage" and "sustained yield."  He                
advised members that he had meant to offer, in the previous                    
committee, an amendment suggested by someone who had called in from            
Kodiak regarding "shortage" and the availability of other species.             
However, he didn't have that proposed amendment with him this day.             
He referred to  Section 3 on page 6 and indicated there is a                   
technical change which substitutes "fish and game dependent use"               
for "subsistence hunting and fishing."  Those are mostly technical             
changes, continuing on page 7.                                                 
                                                                               
Number 1295                                                                    
                                                                               
REPRESENTATIVE OGAN told members Section 5 addresses the regional              
boards and advisory committees; the latter exist now, and to his               
knowledge there are approximately 80 advisory committees throughout            
the state.  This creates five regions in the state and sets up                 
regional boards, to separate the wheat from the chaff and cut down             
on the work of the main boards.  In state law, the main boards are             
required to consider every proposal brought before them, an arduous            
and time-consuming task.  These regional boards would make                     
recommendations to the main boards; all proposals shall be                     
transmitted to the main boards, but they will give deference to the            
ones by the regional boards.  Representative Ogan pointed out that             
currently the main boards basically react to emergencies rather                
than managing fish and game.  This would also give more say to                 
local residents; he said there is a feeling now of                             
disenfranchisement by rural people in the process.  Representative             
Ogan said he envisions the regions being Southeast, Southwest,                 
Southcentral, Northwest and Arctic.  He expressed hope that this               
will result in better fish and game management.                                
                                                                               
Number 1468                                                                    
                                                                               
REPRESENTATIVE OGAN indicated the next few pages contain mostly                
technical name changes.  He then discussed page 14, Section 13,                
which says, "For the purpose of administering AS 16.05.251 and                 
16.05.255, each board may delegate authority to the commissioner or            
to a regional fish and game board to act in its behalf."  He said              
if there is a shortage in a region, for example, the main board                
could tell the regional board to monitor it and institute a closure            
if necessitated under the sustained yield principle.  The following            
changes are mostly technical, substituting "personal and family use            
for sustenance" for "subsistence," up to page 22, which contains               
mostly technical repealers.  On the bottom of page 22, it gets into            
appointments of members to regional fish and game boards.                      
                                                                               
Number 1564                                                                    
                                                                               
REPRESENTATIVE OGAN told members page 23 probably contains one of              
the more interesting portions, a required advisory vote on                     
preference for use of fish and game, to be put on the primary                  
ballot.  Section 38 specifies what happens if there is a "no" vote             
on that, and Section 40 relates to provisions effective if the                 
attorney general determines that Title VIII of ANILCA has been                 
amended in such a manner that it covers the five points set out on             
page 24.  He read from (A) through (E), noting that one condition              
is that the definition of "public lands" in ANILCA is amended to               
exclude state and private land and water, including navigable                  
water.  Representative Ogan said when Alaska became a state, no one            
dreamed navigable waters would be considered anything but state                
lands.  He added, "And of course we've been in court on the Katie              
John suit on that, so this fixes Katie John."                                  
                                                                               
REPRESENTATIVE OGAN told members that in (E), "sec. 316(b)(3)(B) of            
P.L. 105-83" is the portion of ANILCA that gives specific authority            
to Secretary of the Interior to manage fish and wildlife on public             
lands in Alaska.  He said if Alaska amends its constitution and                
statutes to give a rural priority, that would actually expand the              
authority of the Secretary of the Interior.  He referred to one of             
U.S. Senator Ted Stevens' amendments to ANILCA and said, "It's been            
implied, and there's been federal court oversight before, but it's             
never been in writing that the Secretary shall manage if we're out             
of compliance.  Now, theoretically, if we pass this, that goes                 
away, but I wanted to make sure that it goes away by addressing it             
specifically, because I personally think that reduces our state to             
territorial status."  He said that concluded his testimony.                    
                                                                               
Number 1752                                                                    
                                                                               
REPRESENTATIVE CROFT referred to page 1, lines 6 through 8, and to             
the public trust doctrine.  He said he had listened to some of the             
testimony in the House Resources Standing Committee; he noted that             
the current committee must address legal issues, including what is             
necessary to amend the constitution, if needed, what it takes to               
comply with ANILCA, or what are appropriate amendments to ANILCA or            
state statutes to make this work.  He said, "And I've been                     
searching in vain for a public doctrine case that says we can't                
amend our constitution.  In fact, I heard your expert on that                  
issue, Mr. Cook, say, 'If you amend ... the Alaska constitution,               
the public trust doctrine is simply superseded.'  Did I miss                   
anything in that discussion?"                                                  
                                                                               
Number 1804                                                                    
                                                                               
REPRESENTATIVE OGAN replied that the public trust doctrine is                  
simply the case law, taken as a whole.  He offered to show members             
that, indicating a staff member was retrieving a book containing               
that.  He indicated his belief that amending the constitution as               
discussed would violate established case law established in the                
U.S. Supreme Court and could certainly be challenged.                          
                                                                               
REPRESENTATIVE CROFT said he had the law review article, if                    
Representative Ogan wanted to see it.                                          
                                                                               
REPRESENTATIVE OGAN said the state has a fiduciary duty to manage              
the assets of the public trust in the best interests of the public,            
and it would be a violation of that duty to give a special class of            
people a right to a public trust resource.  He read briefly from a             
U.S. Supreme Court case settled in 1892, Illinois Central Railroad             
Company v. Illinois, saying the state can no more abdicate its                 
trust over property in which the whole people are interested than              
it can abdicate its police powers, administration of government and            
the preservation of peace.                                                     
                                                                               
Number 1898                                                                    
                                                                               
REPRESENTATIVE CROFT asked whether Representative Ogan knew of any             
U.S. Supreme Court case, or any other case, that holds that giving             
a rural preference violates the federal equal protection clause.               
                                                                               
REPRESENTATIVE OGAN replied, "No, simply because it has not been               
litigated. ... The Alaska Supreme Court has clearly said that it's             
an equal protection case, and I believe the verbiage was 'an easy              
one, at that.'"                                                                
                                                                               
Number 1939                                                                    
                                                                               
REPRESENTATIVE CROFT responded, "The Alaska Supreme Court said that            
it violated our specific provisions ... on management of fish and              
game.  It violated our constitutional provisions, and that's what              
puts us in this ball game.  But I have not heard of any federal                
case that says it violates equal protection.  And that's what I was            
trying to get to.  Your own expert said, 'If you amend the                     
constitution, the public trust doctrine does not stand in your                 
way.'"                                                                         
                                                                               
REPRESENTATIVE OGAN replied, "And you're correct that he did say               
that, and that's because the public trust doctrine is simply case              
law, taken as a whole ...."  He indicated case law changes as the              
cases change, and he restated that it has not been taken to the                
U.S. Supreme Court.                                                            
                                                                               
REPRESENTATIVE CROFT referred to pages 3 and 4.  He asked about the            
areas identified as having a dependence on fish and game, as well              
as the people who must have a personal dependence on fish and game.            
He said, "When you declare that area as unable to meet sustained               
yield any longer, does the preference kick in for residents of that            
area or residents of every part of the state?"                                 
                                                                               
REPRESENTATIVE OGAN answered that he believes it kicks in for every            
part of the state, and that someone who qualifies can go to another            
area of the state and partake there.                                           
                                                                               
Number 2027                                                                    
                                                                               
REPRESENTATIVE CROFT said he didn't see any place where it links               
the person to the area.  He stated, "It's my understanding that                
under ANILCA now, you have a rural preference, but you have a                  
customary and traditional use of that resource.  So under the                  
proposed federal regulations, under ANILCA, you couldn't fly from              
Angoon to Barrow to be a subsistence user.  You are still a rural              
resident, but you didn't have a customary and traditional use of               
that resource; you couldn't establish it.  Under your program, as              
long as I have the $5 permit, I can fly up to Barrow and be a                  
subsistence user."                                                             
                                                                               
REPRESENTATIVE OGAN affirmed that, stating his understanding that              
under the federal law, a rural resident qualifies in any other                 
rural area, unless there are special restrictions.  He suggested               
there are practical limitations, however.  For example, a person               
who qualifies for a $5 license probably could not afford to fly to             
Barrow to participate in a caribou hunt, unless a friend had an                
airplane.                                                                      
                                                                               
Number 2086                                                                    
                                                                               
REPRESENTATIVE CROFT referred to page 3, starting on line 3.  He               
stated his understanding that the consumptive preference applies to            
every fish stock or game population.  Therefore, a person who                  
qualified would be first in line for every particular fish stock.              
                                                                               
REPRESENTATIVE OGAN concurred.                                                 
                                                                               
Number 2124                                                                    
                                                                               
CHAIRMAN GREEN asked whether it may create a special use if they               
limit people to those who qualify for this $5 license, which would             
require being essentially indigent and therefore being unable to go            
to other areas of the state.  Noting that it may be a restriction,             
he asked if there had been discussion of whether that would run                
afoul of the present constitution.                                             
                                                                               
REPRESENTATIVE OGAN stated his belief that the testimony from                  
lawyers in the previous committee indicated the only constitutional            
concerns had been amended out of the bill.                                     
                                                                               
Number 2198                                                                    
                                                                               
REPRESENTATIVE BRIAN PORTER commended Representative Ogan and the              
House Resources Standing Committee for bringing forth an approach              
that needs to be considered.  He referred to page 2 and discussion             
in the findings of the capacity for an abundance, as well as the               
intention of managing for a greater abundance of fish and game.  He            
asked, "From your point of view, is this a change in management                
policy or a reiteration of it?"                                                
                                                                               
REPRESENTATIVE OGAN replied that there has been a certain amount of            
frustration, perhaps exemplified by a recent resolution passed by              
the legislature, that the department wasn't necessarily managing               
for abundance.  He suggested some of it is founded in a lack of                
intensive management regarding predators.  He stated, "Certainly if            
you manage for abundance, it reduces the conflicts of who is a                 
'have' and a 'have not.'"  Noting that subsistence fishing is the              
largest portion of subsistence hunting and fishing, he said he had             
been told it is only 1 percent of the amount harvested statewide by            
humans.  He said he finds it rather ludicrous if the federal                   
government is considering taking over the fisheries management for             
1 percent.  Representative Ogan said Alaska residents own the                  
resource, adding, "It belongs to the people first, and then we                 
allow other people to exploit it commercially.  And I just think               
it's a good public policy to have that the highest and best use."              
                                                                               
Number 2311                                                                    
                                                                               
CHAIRMAN GREEN noted that "abundance" is not defined here. He                  
asked, "And would we run afoul if we managed for abundance, of                 
determining that if there's any restriction in any area, that we               
haven't reached abundance?  And would that kick this in, then?"                
                                                                               
REPRESENTATIVE OGAN agreed it might be good to put "abundance" in              
the definitions.  He said the less ambiguous the law is, the less              
chance there is of litigation.                                                 
                                                                               
Number 2335                                                                    
                                                                               
REPRESENTATIVE CROFT asked whether abundance necessarily means some            
form of predator control.                                                      
                                                                               
REPRESENTATIVE OGAN replied that it means intensive management as              
defined under Title 16, which could be predator control or, as he              
recalls the statute, silvacultural practices that increase                     
populations of ungulates.  He said he was talking about forestry,              
cutting down trees and letting little trees grow so that moose can             
eat better, for example.                                                       
                                                                               
REPRESENTATIVE CROFT asked how one manages for abundance for a                 
fishery, such as doing predator control.                                       
                                                                               
REPRESENTATIVE OGAN said they wouldn't necessarily have to do that             
for a fishery, but the description must include both boards.                   
                                                                               
Number 2393                                                                    
                                                                               
REPRESENTATIVE ROKEBERG requested clarification of the distinction             
between managing for abundance and managing for sustained yield.               
                                                                               
REPRESENTATIVE OGAN read the definition of sustained yield, page 6,            
lines 21 through 23, which says it is a level of utilization of a              
fish or game population for consumptive uses by humans that is                 
capable of being maintained in perpetuity.  He added, "And                     
abundance certainly means enough to go around for everybody, is how            
I would simplistically interpret it."                                          
                                                                               
Number 2432                                                                    
                                                                               
REPRESENTATIVE CON BUNDE pointed out that Alaska has a growing                 
population.  He questioned how there can continue to be abundance              
to serve everyone, without some rationing.  He suggested that                  
definition defies reality.                                                     
                                                                               
TAPE 98-33, SIDE B                                                             
Number 0006                                                                    
                                                                               
REPRESENTATIVE OGAN said he would carefully consider these points,             
and he is open to getting it as clearly defined as possible.                   
                                                                               
Number 0023                                                                    
                                                                               
REPRESENTATIVE PORTER referred to page 3, subsection (b).  He asked            
whether the area mentioned on line 4 refers to any area of the                 
state or to a dependent use area.                                              
                                                                               
REPRESENTATIVE OGAN expressed his understanding that it would be               
any area of the state, as it would certainly have statewide                    
application.  He noted that under the sustained yield principle, if            
there is not enough to go around with the harvestable portion, then            
the board is given authority to allocate.  He added, "We're                    
requiring them to allocate with the ranking of the beneficial uses,            
with the highest preference to consumptive use for personal and                
family use for sustenance.  So, this is kind of like the first                 
tier."  He said when there is not enough to go around, and to                  
maintain the sustained yield, the board would first allocate a                 
certain percentage to personal and family use.                                 
                                                                               
Number 0080                                                                    
                                                                               
REPRESENTATIVE PORTER asked whether, for a shortage in a                       
nonsubsistence area, this would still give a preference to                     
subsistence users, or whether the preference would be to sport                 
fishing and personal use.                                                      
                                                                               
REPRESENTATIVE OGAN answered that he interprets this portion to be             
applied statewide.                                                             
                                                                               
Number 0099                                                                    
                                                                               
REPRESENTATIVE PORTER said if he understands the bill in the                   
aggregate, it sets up the standard licenses for taking fish and                
game that now exist, commercial through personal use, and then adds            
subsistence, with this definition of a $5 license and the other                
requirements.  In a time of no shortage, a subsistence permit                  
holder can hunt or fish within limitations that may be placed on               
how much a subsistence person can take, anywhere.  He asked                    
whether, if there was a shortage in a nonsubsistence area, that                
license would have a preference there.                                         
                                                                               
REPRESENTATIVE OGAN deferred to Mr. Utermohle.                                 
                                                                               
Number 0165                                                                    
                                                                               
REPRESENTATIVE CROFT referred to page 4, line 13, and read, "If the            
Board of Fisheries or the Board of Game, as appropriate, with the              
concurrence of the department, determines that a shortage of a fish            
stock or game population available for harvest in a fish and game              
dependent use area exists, the board may establish a preference                
...."  He said that same question perturbs him, and if it is in                
there, then all subsistence users in the state can fly in and take             
it, first in line.  He inquired, "But if I am a subsistence user               
qualified under your definition, who lives in a nonsubsistence                 
zone, that is, one that hasn't been certified as fish and game                 
dependent, I don't move to the head of the line?"                              
                                                                               
REPRESENTATIVE OGAN again deferred to Mr. Utermohle, who came                  
forward and joined him at the witness table.                                   
                                                                               
Number 0241                                                                    
                                                                               
REPRESENTATIVE PORTER referred to subsection (b) on page 3, line 3.            
He asked whether it is Mr. Utermohle's interpretation that a                   
subsistence permit holder, as defined within this bill, in times of            
a shortage would have a preference in a "non-fish and game                     
dependent use area."                                                           
                                                                               
Number 0256                                                                    
                                                                               
GEORGE UTERMOHLE, Attorney, Legislative Legal and Research                     
Services, Legislative Affairs Agency, told members subsection (b)              
provides that in the event of a shortage, the department would rank            
uses of that particular resource, giving highest priority to those             
uses involving taking of that fish and game for sustenance.  He                
said that ranking of priorities is distinct from the procedure in              
the next section of the bill.                                                  
                                                                               
Number 0278                                                                    
                                                                               
REPRESENTATIVE PORTER noted that it says "notwithstanding AS                   
16.05.251(e)," which seems to set up all the categories of licenses            
except for subsistence.  He surmised that it therefore refers to a             
subsistence program.                                                           
                                                                               
MR. UTERMOHLE replied, "It's my understanding that is not what this            
language does.  [AS] 16.05.251(e) establishes a procedure by which             
the Board of Fisheries allocates fisheries resources among personal            
use, commercial and sport uses.  That's consistent with the current            
'all those uses being subservient to the preference for                        
subsistence.'  And this provision of the bill sets up ... a                    
procedure for ranking the various uses of fish and game resources,             
notwithstanding those criteria set out in .251.  So, this                      
establishes an alternative procedure whereby the board, in times of            
shortage, goes out and looks at each of the uses of the resource               
and determines which should have first crack at the available                  
resource, inside or outside of a subsistence use area."                        
                                                                               
Number 0336                                                                    
                                                                               
REPRESENTATIVE PORTER asked whether a personal use permit would                
qualify for personal and family sustenance, and consequently that              
could be considered in the mix of priorities.                                  
                                                                               
MR. UTERMOHLE said yes.                                                        
                                                                               
Number 0358                                                                    
                                                                               
REPRESENTATIVE ETHAN BERKOWITZ said he understands the point Mr.               
Utermohle was just making, but on page 4, line 16, even after there            
has been a hierarchy established it doesn't appear to be mandatory             
that the preference be followed; it appears to be permissive.  He              
asked Mr. Utermohle to comment.                                                
                                                                               
MR. UTERMOHLE replied, "That is true. ... Once the board of                    
fisheries or game identifies a shortage, it is still discretionary             
with them whether or not to go through this preference process."               
                                                                               
REPRESENTATIVE PORTER said that is in a dependent area.                        
                                                                               
Number 0393                                                                    
                                                                               
REPRESENTATIVE BERKOWITZ stated, "Once you have a shortage, it's               
not necessary that someone with a sustenance priority get                      
preference."                                                                   
                                                                               
MR. UTERMOHLE agreed.                                                          
                                                                               
Number 0398                                                                    
                                                                               
REPRESENTATIVE CROFT noted that on page 4, beginning at line 13, it            
talks about fish and game dependent use areas.  He asked where the             
similar provision is for areas that are not fish and game                      
dependent.                                                                     
                                                                               
MR. UTERMOHLE said that provision is largely contained in                      
subsection (b) at the top of page 3.  He specified that it                     
establishes a procedure to force the boards to decide which uses of            
a resource shall be allowed, establishing a hierarchy of uses.                 
                                                                               
Number 0424                                                                    
                                                                               
REPRESENTATIVE CROFT inquired what subsection (b) on page 3 and                
subsection (b) on page 4 do differently.                                       
                                                                               
REPRESENTATIVE OGAN said as he sees it, (b) on page 3 happens                  
first, because it is not necessarily a shortage but there is just              
not enough to go around and still maintain the sustained yield                 
principle as mandated in the constitution.  On the other hand, he              
envisions that (b) on page 4 is when there is a shortage, and the              
boards would have already done what is in subsection (b) on page 3;            
it would then fall under the criteria spelled out at the top of                
page 5.                                                                        
                                                                               
MR. UTERMOHLE concurred.                                                       
                                                                               
Number 0489                                                                    
                                                                               
REPRESENTATIVE CROFT stated, "Page 3 says if the boards find that              
the projected level of harvest of a fish stock or game population              
would exceed the sustained level of harvest."  He asked how the                
shortage on page 3 differs from that on page 4, line 14.                       
                                                                               
REPRESENTATIVE OGAN answered that he would perhaps call this the               
extreme shortage, where there isn't enough to go around for the                
people who live in a fish and game dependent use area.  It gets                
into language of "reasonable opportunity," which is defined in a               
later section.  It allows the board to provide a preference to                 
those people who have a true dependence, who are true subsistence              
users, rather than to those in the area that have good jobs, for               
example.  He said he doesn't like the term "needs-based," and he               
would call it more of a resource-dependent criteria.                           
                                                                               
Number 0562                                                                    
                                                                               
REPRESENTATIVE CROFT asked, "In this general shortage on page 3, it            
applies to each of the areas, whether a dependent use or not?"                 
                                                                               
REPRESENTATIVE OGAN affirmed that.                                             
                                                                               
REPRESENTATIVE CROFT continued, "In the extreme shortage, as you               
put there, it applies only to the dependent use areas.  So, if                 
we're in an extreme shortage in the Anchorage bowl, ... why am I               
not first in line?"                                                            
                                                                               
REPRESENTATIVE OGAN replied, "Because you wouldn't be in a                     
dependent use area, ... because it wouldn't fit the criteria.                  
                                                                               
Number 0579                                                                    
                                                                               
REPRESENTATIVE CROFT said, "So rural residents - subsistence,                  
dependent use, whatever term we use - but rural residents go to the            
front of the line in an extreme shortage, but urban residents                  
don't, for some reason."                                                       
                                                                               
REPRESENTATIVE OGAN affirmed that, then added that there is                    
dependence for sustenance, which has this whole criteria, and the              
board shall determine where dependence on fish and game is a                   
principle characteristic of the economy and way of life of the                 
area.  He cited factors, indicating his belief that the courts have            
said if there are rational criteria, this is appropriate.                      
                                                                               
Number 0624                                                                    
                                                                               
REPRESENTATIVE CROFT referred to the top of page 3.  He noted that             
the general "small shortage" provision applies equally to both                 
Anchorage and Holy Cross.  However, in an extreme shortage, a poor             
resident of Holy Cross gets a hard preference and goes to the first            
of the line, whereas a poor resident of Anchorage does not.                    
                                                                               
REPRESENTATIVE OGAN stated his understanding that the Anchorage                
resident could go to Holy Cross and participate in subsistence                 
taking, or could go into an area where there is this preference and            
participate.                                                                   
                                                                               
REPRESENTATIVE CROFT said he believes that is the way it reads, and            
that is what he was trying to explore.  If both Holy Cross and                 
Anchorage have an extreme crisis, the poor resident of Anchorage               
doesn't get the preference in Anchorage but can fly to Holy Cross              
and get the preference.                                                        
                                                                               
Number 0685                                                                    
                                                                               
MR. UTERMOHLE responded that there is no residency-based criterion;            
rather the criteria are the fish and game license plus the history             
of use.  If a shortage is found to exist, every person in the state            
who satisfies the criteria has equal access to the available                   
resource.                                                                      
                                                                               
Number 0724                                                                    
                                                                               
REPRESENTATIVE PORTER called members' attention to page 5, line 26,            
subsection (f), which says, "A person who is determined by the                 
Board of Fisheries and the Board of Game to be dependent on fish               
and game for personal and family use for sustenance may take fish              
and game in any location in the state where a preference for the               
harvest of fish or game for personal and family use for sustenance             
has been established under (b) of this section."  He asked whether             
Mr. Utermohle believes that applies to both dependent use areas and            
nondependent use areas, although it doesn't specifically say that.             
                                                                               
Number 0803                                                                    
                                                                               
MR. UTERMOHLE said no, that subsection (f) is specific to the                  
taking of fish and game for personal and family use for sustenance,            
in an area where the preference for the harvest is established                 
under (b) of this section.  That preference for a harvest is only              
established in fish and game dependent use areas.                              
                                                                               
REPRESENTATIVE PORTER replied, "But by definition, consumption use             
for personal and family use for sustenance, they would share, I                
guess, consideration for preference in a nonsubsistence use area               
with personal use permits."                                                    
                                                                               
MR. UTERMOHLE concurred.                                                       
                                                                               
Number 0841                                                                    
                                                                               
REPRESENTATIVE PORTER asked whether this person that qualifies must            
have the $5 license and submit a written, signed statement of                  
dependence or have no alternate means of sustenance as a result of             
the person's decision to adopt a fish and game dependent lifestyle.            
He further asked whether, if he himself qualified for the $5                   
license and decided to adopt this lifestyle, he would qualify.                 
                                                                               
MR. UTERMOHLE said that is essentially the case, but there is a                
review process that the person asserting eligibility has to go                 
through.  The person must submit documents to the regional board               
for review and a determination of qualification; that is passed on             
to the statewide board of fisheries or game to make the ultimate               
decision.                                                                      
                                                                               
REPRESENTATIVE PORTER suggested there is no discretion to deviate              
from this statute in that determination by the board, however.                 
                                                                               
MR. UTERMOHLE replied, "No.  These are the criteria."                          
                                                                               
Number 0905                                                                    
                                                                               
REPRESENTATIVE PORTER suggested that if he was qualified to possess            
and did possess the $5 license, and said he wanted to adopt the                
lifestyle, he would qualify.                                                   
                                                                               
MR. UTERMOHLE replied, "You enjoy the preference."                             
                                                                               
Number 0926                                                                    
                                                                               
REPRESENTATIVE OGAN commented on that, noting that they had                    
discussed the technical portions of how that works.  He explained              
that they had put that in there to recognize the cultural and                  
traditional needs of some people who might live in Bethel, for                 
example, which might have a cash-based economy.  If a person has               
the $5 license and wants to live a subsistence lifestyle, this                 
still allows the person to do that.                                            
                                                                               
REPRESENTATIVE PORTER said he could understand how they could back             
into something that way to try to cover the right people.  He                  
expressed concern about unintended consequences, however.  He asked            
whether Representative Ogan had run an estimate of how many people             
could possibly qualify for a subsistence license under this bill.              
                                                                               
REPRESENTATIVE OGAN said no, indicating he would ask his staff to              
have that done.                                                                
                                                                               
CHAIRMAN GREEN mentioned that the Alaska Department of Fish and                
Game (ADF&G) could furnish the number of $5 licenses.                          
                                                                               
REPRESENTATIVE BERKOWITZ said from his understanding, there are                
15,000.                                                                        
                                                                               
REPRESENTATIVE OGAN suggested that under this provision, they would            
probably see a lot more $5 licenses in rural Alaska.  He expressed             
hope that people who buy the inexpensive licenses would then buy               
the tags and do the reporting, which would provide a better handle             
on what is being taken.                                                        
                                                                               
Number 1006                                                                    
                                                                               
REPRESENTATIVE PORTER referred to page 4, line 30, which reads,                
"(1) possesses a $5 resident hunting, trapping....", and said he               
would add the wording, "qualifies for and possesses...."                       
Representative Porter said you would have regional boards and local            
advisory committees.  He asked if the intent is that the five                  
regional areas comprise the entire state.                                      
                                                                               
REPRESENTATIVE OGAN responded in the affirmative.                              
                                                                               
REPRESENTATIVE PORTER pointed out the bill doesn't say that.                   
                                                                               
REPRESENTATIVE OGAN said we're asking the boards to identify the               
areas.  He stated, "If I'm not mistaken, we were talking and I                 
don't recall if it got drafted in the bill, but I believe we were              
talking about having that confirmed by the legislature."                       
                                                                               
REPRESENTATIVE PORTER explained that it appears that the                       
establishment of the regional boards begins at the top of page 13.             
                                                                               
REPRESENTATIVE OGAN interjected that it begins at about the middle             
of page 12.                                                                    
                                                                               
REPRESENTATIVE PORTER said, "The Board of Fisheries and the Board              
of Game, acting jointly, shall establish a maximum of five fish and            
game management regions in the state.  It doesn't say, 'to be                  
comprised of the entire state', but that's the intent."                        
                                                                               
Number 1111                                                                    
                                                                               
REPRESENTATIVE OGAN stated that is want we intended them to do.                
                                                                               
REPRESENTATIVE PORTER said within each one of those regions, you               
want up to nine areas comprised of the entire region that are                  
represented by an advisory committee, which is specific in the                 
bill.                                                                          
                                                                               
REPRESENTATIVE OGAN stated that is correct.  He explained the                  
reason that was done was to cut down on the number of advisory                 
committees.  He said some people may have "heartburn" with that,               
but it is his attempt to offset some of the costs.  There will be              
45 advisory committees versus 82.                                              
                                                                               
REPRESENTATIVE PORTER pointed out that the committees and the                  
boards make recommendations, as is mentioned on the applications               
for subsistence licenses.  He said, "But you've got the                        
recommendations of the advisory committees going to both the ...               
regional board and the appropriate board of fish or game, and then             
the board of fish and game giving deference to those                           
recommendations.  But I guess - wouldn't it be better if the                   
advisory committees made recommendations to their board, and then              
their board gave deference to that if they could, or if they were              
conflicting, made a decision and sent on to the Board of Game or               
Board of Fish.  In other words, it's possible that a region board              
could have one opinion and an advisory committee within that region            
have another opinion, but both of them would go to the Board of                
Fish and then they'd have to sort it out I guess but...."                      
                                                                               
Number 1228                                                                    
                                                                               
REPRESENTATIVE OGAN explained he has had a lot of discussions with             
people who have been involved in fish and game management policy.              
They felt that there was a lot of contention on what kind of                   
authority was given to each committee and board.  Representative               
Ogan said there is certainly the potential for regional boards that            
they have too much authority to step on another region, especially             
in areas where there is fish that migrate from the lower river to              
the upper river and would be in two different regions.  He said it             
was felt that it is best to just to keep the advisory committees               
advisory because we don't want to delegate too much of the                     
legislative authority.  He noted the authority is already being                
delegated down to a regional board.  If authority is delegated down            
to the committees, it would be contentious.                                    
                                                                               
REPRESENTATIVE PORTER said he didn't have concern with that.  He               
said, "It was just that the advisory committee stuff going directly            
to the Board of Fish, that's a fish issue, and going to the                    
regional board.  The chain of command is violated, I guess, if you             
want to put it that way."                                                      
                                                                               
REPRESENTATIVE OGAN explained the reason he did that is because he             
wanted the main boards to have the ability to give deference to                
what the regional boards recommended to them.  He said he also                 
wanted them to be able to pick up any proposal in case one region              
is stepping on another region.  They can look at the rest of the               
proposals to see what's there.  They aren't required to have a                 
hearing on them like they currently are.  Hopefully, it will                   
eliminate a whole bunch of work, but if they see something that                
raises a red flag they can say, "Wait a minute, no, we need to look            
at that."                                                                      
                                                                               
Number 1335                                                                    
                                                                               
REPRESENTATIVE PORTER asked if a person can be a member of an                  
advisory committee and a member of a regional board.                           
                                                                               
REPRESENTATIVE OGAN said he would think the answer is yes.  He                 
noted he doesn't believe there is anything that prohibits it.                  
                                                                               
REPRESENTATIVE PORTER said, "If two or three advisory committees               
that perhaps had areas on the same river, and could have conflicts,            
had different takes on how much should be taken in their region as             
compared to the other two, that would want to be settled by the                
regional board and then that recommendation forwarded.  Would that             
be satisfactory, or would you want that issue also the three                   
advisory committees disagreeing recommendations to be also in front            
of the Board of Fish?"                                                         
                                                                               
REPRESENTATIVE OGAN said he believes that the way the bill is                  
written, the main boards can delegate whatever they wish to the                
regional boards.  He said he thinks that discretion should be given            
to them.                                                                       
                                                                               
Number 1441                                                                    
                                                                               
REPRESENTATIVE BERKOWITZ referred to the section of the bill that              
addresses the advisory votes and said as he understand, advisory               
votes don't have the force of law.  The way it's set up on page 23,            
it seems to act like an enabler.                                               
                                                                               
REPRESENTATIVE OGAN responded that there is no doubt that it does              
act as an enabler.  It takes effect when the people vote on it.  He            
said he would be happy to provide two attorney general opinions                
that say that it is entirely legal.                                            
                                                                               
REPRESENTATIVE BERKOWITZ said there are 14,263 people who have $5              
permits to qualify.  There would be significantly a fewer number of            
people who qualify under the ANILCA definition.  He asked                      
Representative Ogan how his bill would square with ANILCA.  He also            
asked if it wouldn't invite federal management.                                
                                                                               
Number 1513                                                                    
                                                                               
REPRESENTATIVE OGAN referred to AS 16.16.010 (b) of the bill and               
said we're allocating with the highest priority towards consumptive            
use for personal family sustenance.  Only when there is too much of            
a shortage to provide for that allocation shall the other criteria             
kick in.  He explained that hopefully under the first scenario                 
those needs will be met.  Only in very extreme shortages would the             
second one would kick in and possibly it be just be in a game                  
management unit or a subunit of a game management unit.  It gives              
the board the latitude to manage appropriately.                                
                                                                               
REPRESENTATIVE BERKOWITZ said the $5 resident hunting, trapping and            
sport fishing license is only available roughly to 15,000 people.              
He stated that he understands the language in ANILCA is pretty                 
clear that if there is a diminishment of the number of people who              
qualify under ANILCA, that would be the sort of discrepancy that               
would lead to a federal takeover of Alaska's fish and game                     
management.  Representative Berkowitz asked Representative Ogan how            
he reconciles the dictates of federal law with the significantly               
diminished numbers that would qualify under his bill.                          
                                                                               
REPRESENTATIVE OGAN responded, "Very easily, if we pass this bill              
we're out of compliance because it doesn't give a rural priority.              
So we're already out of compliance and we're asking the Alaskan                
voters to vote on this and also give the nod for appropriate                   
changes to ANILCA to conform with state law.                                   
                                                                               
REPRESENTATIVE BERKOWITZ said we're out of compliance with ANILCA              
under the bill.                                                                
                                                                               
REPRESENTATIVE OGAN responded in the affirmative and said it does              
not give a rural preference.  He said he believes the bill is more             
in compliance with the intent of ANILCA to meet the subsistence                
needs of people who have the need than what is currently in state              
law.  He said this is not a rural priority constitutional amendment            
nor does the statutes in it require a rural priority constitutional            
amendment.                                                                     
                                                                               
Number 1708                                                                    
                                                                               
REPRESENTATIVE BUNDE noted he has information that states the                  
number of people who have the $5 hunting license is 14,263.  He                
said, "And just to give you an idea that whether this would                    
diminish opportunity if this bill were to pass ... just because                
that's the number of licenses doesn't mean that's number of people             
that ought to be buying.  You know 3,500, in round numbers, were               
sold and Anchorage 300 in Juneau, and 300 in Fairbanks - about                 
around 500 Soldotna and Wasilla, 3 were sold in Barrow and 0 in                
Venetie.  So the fact that there license are being purchased that              
are not purchased doesn't diminish opportunity."  Representative               
Bunde pointed out a concern of his is that there is always a                   
shortage.  He read from page 2, subsection (6), line 5, "these                 
resources are not unlimited and cannot provide for every desired               
use, now or in the future;".  Representative Bunde referred to page            
3, (b), and said, "And it talks about this will only apply if there            
is a shortage.  I mean are we mincing words?  Should we just say               
there isn't enough?"                                                           
                                                                               
REPRESENTATIVE OGAN said that on page 3, (b), just says that there             
is not enough projected level of harvest.  He said, "In other                  
words, 'projected level of harvest' I think you could probably                 
envision as this is what the historical harvest of this has been               
and suddenly this drops below the projected level of harvest.                  
We're giving the board the authority to allocate with the ranking              
to the highest preference to consumptive use for subsistence or                
sustenance or whatever you want to call it."                                   
                                                                               
REPRESENTATIVE BUNDE referred to page 2, (6), and asked if he is               
wrong to say that a shortage will always occur.                                
                                                                               
Number 1884                                                                    
                                                                               
REPRESENTATIVE OGAN said he believes it recognizes that.  He stated            
these resources are not unlimited and cannot provide for every                 
desired use now or in the future.                                              
                                                                               
REPRESENTATIVE BUNDE observed that Alaska has a lower number of                
wild game, per square mile, than many other states in the nation.              
He referred to page 5, line 5, (B)(ii), "the person's decision to              
adopt a fish and game dependent life style."  Representative Bunde             
said he thought he heard Representative Ogan say it allows people              
to pick and choose.  He gave a scenario of a person who is a                   
fisherman in Kodiak.  When the person lives in Kodiak, he lives                
what Representative Bunde would call a fish and game dependent life            
style.  This person also has a second home in Seattle and lives                
about half the year there.  Representative Bunde said when this                
person comes back to Alaska, would he get to choose to have a                  
dependent live style even though they're wealthy enough to live                
half of the year out of the state.                                             
                                                                               
REPRESENTATIVE OGAN said he doesn't believe so.  He said the                   
residency statute became law the first of the year which tightened             
down a lot of the old language.  He said the old language maintains            
that a permanent place of abode could be interpreted as a cabin in             
Alaska.  A lot of people maintain Title 16 residencies that didn't             
qualify for permanent fund dividend checks.  It was changed to                 
domicile.  "Domicile" defined in Black's Law Dictionary is                     
principle place of residence.  He said the description has been                
tightened quite a bit.                                                         
                                                                               
Number 2033                                                                    
                                                                               
REPRESENTATIVE BUNDE said what if the person chooses not to live in            
Seattle, but does choose to live in Anchorage.  He is wealthy                  
enough to have two legitimate homes and lives part time (indisc.)              
dependent in Kodiak and part time in downtown Anchorage.                       
                                                                               
CHAIRMAN GREEN said he wouldn't qualify for the $5 license.                    
                                                                               
REPRESENTATIVE BUNDE said it says, "or".                                       
                                                                               
CHAIRMAN GREEN said he has a $5 license and some of those other                
"ors."                                                                         
                                                                               
Number 2067                                                                    
                                                                               
REPRESENTATIVE JAMES asked what the purpose of establishing a                  
dependent use area.                                                            
                                                                               
REPRESENTATIVE OGAN pointed out that it is currently in state                  
statute.  He said, "We wanted to make sure that we can provide for             
people that have a true subsistence need or life style that are                
dependent on the area.  I think ... if we establish a reasonable               
criteria and with the criteria that we've got here on these 14 or              
whatever points, are that we can give a preference of the use of               
fish and game to people in those dependent areas."                             
                                                                               
REPRESENTATIVE JAMES asked Representative Ogan what kind of a                  
different use would he expect for the people that live in the                  
dependent use area as opposed to those who don't.  She said if                 
there is someone in Palmer who is currently living a subsistence               
life style, meets all the other criteria, but doesn't live near a              
dependent use area or an area that's not assigned as a dependent               
use area.  She referred to a person who has the same qualifications            
in some place that is a dependent use area and asked if they would             
have more of a priority.                                                       
                                                                               
REPRESENTATIVE OGAN stated that in times of shortage, if you live              
in a dependent use area and qualify under the $5 criteria, you                 
would have preferential use of fish and game.                                  
                                                                               
Number 2194                                                                    
                                                                               
REPRESENTATIVE JAMES pointed out that the committee heard Mr.                  
Utermohle say that during a shortage, that would apply to anyone               
across the state.  She asked if that means if there is a shortage              
in one of the dependent use areas that the person from Palmer can              
go there or must he stay and hunt and fish in the area that is not             
considered to be a shortage.                                                   
                                                                               
REPRESENTATIVE OGAN stated he can hunt in any area in the state,               
including the areas that have a restriction.                                   
                                                                               
REPRESENTATIVE JAMES asked what there is a need for a dependent use            
area.  It looks like it doesn't have a purpose.                                
                                                                               
REPRESENTATIVE OGAN pointed out that it has a purpose of                       
identifying areas of the state where the economy and the historical            
and social economic values, and a whole bunch of other things that             
are in the criteria, are the way of life.                                      
                                                                               
REPRESENTATIVE JAMES said it doesn't give him any more of a benefit            
for being there in this case.                                                  
                                                                               
REPRESENTATIVE OGAN stated he believes it does because in times of             
shortage people in those areas that possess the $5 criteria have a             
preference.                                                                    
                                                                               
Number 2303                                                                    
                                                                               
REPRESENTATIVE BERKOWITZ said based on the benefit, depending on               
where you live, we can draw distinctions based on $5 users.                    
                                                                               
REPRESENTATIVE OGAN said he would defer to Mr. Utermohle as he is              
more familiar with the constitutional authorities.                             
                                                                               
REPRESENTATIVE BERKOWITZ said, "As I understand what Representative            
Ogan said, he said that people who live in dependent use areas gain            
a benefit from being in those areas as opposed to people who aren't            
residents of those areas.  Therefore, it appears to me as of what              
he's saying is that we can distinguish between people based on                 
their place of residence."                                                     
                                                                               
CHAIRMAN GREEN informed Representative Berkowitz that was a                    
question that was asked earlier and he was going to think about a              
definition.                                                                    
                                                                               
Number 2388                                                                    
                                                                               
MR. UTERMOHLE explained that in the process of allocating access to            
fish and game we cannot make determinations or restrictions on                 
access based on where you live in the state.                                   
                                                                               
CHAIRMAN GREEN said that because of the de facto, you are because              
of the low income level necessary to qualify for a $5 license.                 
                                                                               
MR. UTERMOHLE stated that by virtue of providing for access to a               
user group, we are implicating the equal access provisions of the              
Alaska Constitution.  He said as long as you're not making access              
to a user group based on geographic criteria, the criteria you use             
is subject to an equal protection analysis.  He said, "The                     
importance of the state interest -- the state is trying to pursue              
by creating this criteria versus the important individual interest             
...."                                                                          
                                                                               
TAPE 98-34, SIDE A                                                             
Number 0001                                                                    
                                                                               
MR. UTERMOHLE continued, "...means chosen to achieve its end has               
the least infringement, or least restrictive method on access to               
fish and game.  And that's the steps the courses go through and                
that's how you would determine whether or not a $5 license                     
requirement would survive scrutiny under the Alaska constitution.              
The nonsubsistence areas have been upheld in the Alaska Supreme                
Court just because they don't prevent someone from going into a                
subsistence area and engaging in use of fish and game for food.                
Just because someone lives in a subsistence use area or doesn't is             
not unconstitutional classification of residence of the state.                 
People outside living outside the area are free to go into those               
areas and engage in uses of those resources for fish and game."                
                                                                               
Number 0099                                                                    
                                                                               
REPRESENTATIVE JAMES referred to the current law and people who                
qualify for the subsistence life style in rural Alaska according to            
ANILCA and asked if these people have to purchase a hunting and                
fishing license.                                                               
                                                                               
REPRESENTATIVE OGAN said he believes they have to get some sort of             
a permit.  He said that Mr. Utermohle may know something about it.             
                                                                               
MR. UTERMOHLE said, "I cannot answer what the license requirements             
are under the state law or under federal requirements."                        
                                                                               
REPRESENTATIVE JAMES asked if the subsistence qualified people are             
allowed to hunt without seasons and bag limits.                                
                                                                               
REPRESENTATIVE OGAN said to the best of his knowledge, no.                     
                                                                               
Number 0249                                                                    
                                                                               
REPRESENTATIVE ROKEBERG asked if the House Resources Committee                 
considered reviewing the $5 license criteria and raising the level             
of income in consideration of adopting it for the current version              
of the bill.                                                                   
                                                                               
REPRESENTATIVE OGAN said the committee tried to keep it as simple              
as possible and just cited the Title 16 authority for the $5                   
license.  He noted that to do that he believes you would have to               
change the criteria under AS 16.05.340 (A)(6).                                 
                                                                               
REPRESENTATIVE ROKEBERG referred to the current version of the bill            
and said there is a need for review by the regional boards of the              
applications.  One of the criticisms of this type of program has               
been the overwhelming amount of administrative work, detail, et                
cetera, that would be forced upon these people that (indisc.)                  
qualify.  He asked Mr. Utermohle if it would feasible to draft                 
language that would put the burden of proof on the individual                  
applicant after a very simple applicant.  If he was, in terms of               
enforcement, going to make a violation or didn't qualify, could it             
be enforced from that aspect.  In other words, set up a very                   
simplified application and enforcement system where the burden of              
proof would be on the individual when he was caught as an                      
infraction or some kind of a rebuttable presumption.                           
                                                                               
MR. UTERMOHLE said he suspects that is quite possible.                         
                                                                               
Number 0398                                                                    
                                                                               
REPRESENTATIVE OGAN said there was a great deal of criticism about             
that and that is one of the reasons the committee dropped a lot of             
the criteria for qualifying.  In the previous version of the bill              
there was almost a full page of qualifications.  It was simplified             
greatly to try to mitigate that concern.                                       
                                                                               
CHAIRMAN GREEN stated HB 406 would be addressed again the following            
Wednesday.                                                                     
                                                                               
SSHB  49 - CONSUMER PROTECT.: DIVISION & PENALTIES                             
                                                                               
Number 0487                                                                    
                                                                               
CHAIRMAN GREEN announced the committee would address SSHB 49, "An              
Act establishing and relating to a consumer protection section in              
the Department of Law; increasing penalties for violation of laws              
relating to consumer protection; requiring special accounting for              
money from certain actions related to consumer protection; and                 
providing for an effective date," sponsored by Representative                  
Croft.                                                                         
                                                                               
REPRESENTATIVE CROFT explained he has called the Better Business               
Bureau (BBB) who is a getting a number of calls on a $49 scam.  He             
explained the legislation is a consumer protection bill.  It adds              
a little bit more money into the consumer protection system and it             
also creates a pool of money that is received from fines so that we            
can start doing a better job of helping our citizens with consumer             
protection.  The BBB has recently received calls from people,                  
mostly elderly people, who have received a telephone call where                
they were offered a $49 deal that included an eye exam and glasses.            
Most of the people found that their particular vision requirements             
didn't meet the $49 deal.  They could get their glasses for $179.              
They either had to do that and if they refused, they  were                     
presented a bill for around $79 which was higher than the $49                  
amount.  Representative Croft said it seems that it not only hurts             
the consumer, but it hurts the legitimate businesses in the area as            
people are less likely to respond to anything including legitimate             
offers.  He said he would answer any questions the committee may               
have.                                                                          
                                                                               
Number 0623                                                                    
                                                                               
REPRESENTATIVE ROKEBERG indicated there is a fiscal note for                   
$145,000 and asked Representative Croft if he has had discussions              
with the BBB in that they may try and get additional funding, in               
leu of the bill, to help them with their operations.                           
                                                                               
REPRESENTATIVE CROFT explained that there are only two pieces of               
the consumer protection puzzle.  One is a screening function and               
the other is an enforcement function.  He said his bill deals                  
mainly with the enforcement function.  Representative Croft                    
referred to the screening function and said there have been a lot              
of good ideas about how we might set up, either through the for-               
profit, nonprofit or some combination with government, to screen               
out those calls.  He noted that not every complaint is a true                  
consumer protection violation.  The screening function problems                
need to be solved and there are some innovative ideas to do that.              
The bill relates to the enforcement provision.  The BBB currently              
filters those complaints out and refers the ones where there have              
been multiple complaints on to the Department of Law.  He noted                
that currently the Department of Law doesn't have sufficient                   
resources to respond to all the complaints that should be responded            
to.                                                                            
                                                                               
Number 0743                                                                    
                                                                               
REPRESENTATIVE BERKOWITZ said there is a provision in the bill that            
would allow the state to collect fines.  He said it would seem to              
him that the general fund expenditures could be recouped based on              
revenue brought in by the Consumer Protection Section.                         
                                                                               
REPRESENTATIVE CROFT informed the committee members that currently             
any fines brought in for consumer protection violations go into the            
general fund as they constitutionally have to.  He said intent                 
language has been added to the bill to keep that so that they would            
have a pool of money to work from.                                             
                                                                               
REPRESENTATIVE JAMES questioned what the anticipated fines would               
be.  The fiscal note could show program receipts as opposed to                 
general funds.  She noted there is a provision for designated                  
program receipts in the law.                                                   
                                                                               
REPRESENTATIVE CROFT said it would move the line from the money                
coming under general funds to come in under designated general                 
funds.                                                                         
                                                                               
REPRESENTATIVE JAMES noted that the fiscal note doesn't show                   
anything coming in.                                                            
                                                                               
REPRESENTATIVE CROFT said he would talk to Daveed Schwartz,                    
Department of Law, regarding an estimate of what another attorney              
might bring in.                                                                
                                                                               
Number 0829                                                                    
                                                                               
REPRESENTATIVE BUNDE said he doesn't have a fondness for con men.              
He said Representative Croft has indicated that we cannot have                 
dedicated funds.  He said he doesn't want the public to think that             
somehow we're now establishing a direct line of funding for                    
consumer protection if the bill were to become law.  Representative            
Bunde pointed out that it is currently against the law to commit               
fraud.  He asked if we couldn't, without establishing more                     
bureaucracy, simply prosecute and collect the fines and produce the            
same level of income.                                                          
                                                                               
REPRESENTATIVE CROFT asked he means doing that as private citizens.            
                                                                               
REPRESENTATIVE BUNDE clarified that if there was more aggressive               
prosecution of fraud, there would be more fines and perhaps more               
money available for more attorneys to do more prosecuting.                     
                                                                               
REPRESENTATIVE CROFT pointed out that there is currently 1 1/2                 
people in the Department of Law doing the entire state's consumer              
protection.  He said the bill raises the level of public awareness,            
the level of awareness within the Department of Law and adds one               
more position.                                                                 
                                                                               
Number 0927                                                                    
                                                                               
REPRESENTATIVE BUNDE said he appreciates raising the level of                  
public awareness.  He said if the Department of Law should choose              
to hire another attorney to aggressively prosecute fraud, would                
they not then generate approximately the same amount of income that            
the bill would speak to.                                                       
                                                                               
REPRESENTATIVE CROFT said the Department of Law chose to take,                 
within their current resources, somebody who is prosecuting murder             
trials and move them over to the....                                           
                                                                               
REPRESENTATIVE BUNDE explained that he said if they hired another              
person they'd accomplish things that....                                       
                                                                               
REPRESENTATIVE CROFT said if they hired another person they would              
accomplish the same thing with the same fiscal note he would                   
assume.                                                                        
                                                                               
REPRESENTATIVE BUNDE said they can do that now, the bill mandates              
that they do that.                                                             
                                                                               
REPRESENTATIVE CROFT said, "True and doing another couple of                   
different things, breaking it off as a section that increases                  
public awareness, establishing this intent that the funds be used.             
So yes, we're mandating they do it setting apart another section               
and (indisc.).  Doubling fines as well, quite right."                          
                                                                               
Number 0987                                                                    
                                                                               
CHAIRMAN GREEN referred to prosecuting somebody for telephone                  
fraud, for example, coming in from out-of-state and each person who            
had been defrauded could be a separate action he would presume.  He            
said you could actually go pretty heavy on company aid.  You could             
actually get as much as the entire cost of the program from a                  
single defendant.  If they're going to set up a telephone scam,                
they're going to try and target a lot of people.  He asked if the              
prosecution would list 150 or 200 people that might have been                  
defrauded.  In that case, each one would be a separate action and              
would really show an increase in income.                                       
                                                                               
REPRESENTATIVE CROFT said it is certainly possible under the new               
language.  Under the old language, it was $5,000 per violation and             
not per defendant.                                                             
                                                                               
CHAIRMAN GREEN said if that's the case under existing law, the                 
Attorney General has not seen fit to do that.  He said he wonders              
if that is because there are too few to be worthwhile.                         
                                                                               
REPRESENTATIVE CROFT explained that he doesn't know.  He said he               
could ask Mr. Schwartz.  He said, "It does seem to me that you find            
not in the hundreds of violations but ... a single person you get              
a number of different calls and you can isolate three or four with             
somebody who is willing to step forward in a complaint.  It narrows            
itself down.  I'm sure they make hundreds of tries, but it comes               
down to usually three or four violations.  I think that this $5,000            
has been in our books for some time and so the $10,000 is, to some             
extent, an inflationary increase."                                             
                                                                               
CHAIRMAN GREEN said he understands that.  He said, "My concern is              
that if it's been there and hasn't been used, is there anything                
that leads you to believe that by doubling the fine and                        
establishing a new attorney certainly at $5,000, if there is a                 
significant number of defrauders out there, they could pay his                 
salary.  They could hire another one.  So $10,000 doubles the                  
amount, but is there going to be very few people that this new                 
person would be going after."                                                  
                                                                               
Number 1128                                                                    
                                                                               
REPRESENTATIVE CROFT stated that he believes the Department of Law             
collects a substantial amount of fines under the $5,000 amount.  He            
said the money goes into the general fund and doesn't stay with the            
department and has been eroded somewhat by inflation.                          
                                                                               
REPRESENTATIVE JAMES referred to the sieving of eliminating the                
calls and said she would suggest looking at what process the                   
Ombudsman's Office is currently doing on that process.  She noted              
it's working very well.                                                        
                                                                               
Number 1215                                                                    
                                                                               
REPRESENTATIVE PORTER said, "I can't remember if it was in this                
life or a past life, but there was a proposition, either in front              
of the municipal assembly or the state legislature, that said if we            
spent this much money we will be collecting these many outstanding             
fines and forfeitures, or that would be forfeitures.  And                      
consequently, if we pay for one person, that person will, with                 
little doubt, bring in more money than what he has cost he or she,             
and consequently, that's a pretty good deal.  And it was done and              
that was the truth.  If we could get a fiscal note that seemed to              
indicate this possibility with this bill, I would feel a lot more              
comfortable on passing it along than raising expectations and                  
having them fall with we don't have the ability to look at any new             
programs which is what it will get in finance.  I mean I just hate             
to be blunt, but I don't see any new programs being passed this                
year if they have a fiscal impact.  But if they could be revenue               
neutral, that could be another thing."                                         
                                                                               
REPRESENTATIVE BUNDE said he sees it to be difficult to create a               
revenue neutral programs because there will be expectations in the             
public and if the fines go away, there will be a trip to the                   
general fund for that.  He stated he certainly supports raising the            
amount of the fine.  He pointed out that most of the telephone                 
soliciting fraudulent operations are out-of-state boiler room                  
operations.  Representative Bunde said, "They have little or no                
resources, as I'm sure the people in the legal profession know                 
this, it's a huge step between getting a judgement or levying a                
fine and collecting.  And so I guess I need to see show me the                 
money too.  And I just have to question why, if this was on-tap                
source of revenue that indeed would then also be very positive                 
public policy why the Department of Law or attorney general's                  
office hasn't simply funded another attorney."                                 
                                                                               
CHAIRMAN GREEN said there are three committee members who have                 
raised the same question.                                                      
                                                                               
Number 1347                                                                    
                                                                               
REPRESENTATIVE CROFT said he doesn't think it's going to be revenue            
neutral.  He said he thinks we're going to be spending money to                
protection people out in the public and that will cost.  It will               
bring in some money.  Representative Croft noted he has a letter               
from the Office of the Attorney General, written last year,                    
summarizing some of the cases they settled and how much money they             
recovered in each case.  One was an award to the state of over                 
$70,000 in attorney fees and costs.  He noted the letter lists                 
local companies that had defrauded people, either existing                     
businesses who lost their moral way somewhat or local scam artists.            
There is the potential money for significant money to come in, but             
it is going to cost money.  It is an important public service and              
there are other important things that the Department of Law has                
been doing.  Representative Croft said Representative James' idea              
is an excellent idea to put a line in the fiscal note showing what             
is expected to come in.  He noted he doesn't expect it to equal the            
cost.                                                                          
                                                                               
Number 1411                                                                    
                                                                               
REPRESENTATIVE BERKOWITZ said he disagrees with Representative                 
Croft.  He stated when he was a prosecuting attorney he brought in             
far more to the state than he costed, and that was in a criminal               
realm.                                                                         
                                                                               
Number 1428                                                                    
                                                                               
REPRESENTATIVE JAMES said, "One quick thing, serving on the                    
Department of Law subcommittee, testimony from the Department of               
Law as to why they're not doing this know is they're given a                   
certain amount of budget and there are other issues that are more              
important, and part of it is children's issues that are more                   
important.  And so to meet that demand, they took away the spending            
on consumer protection.  If I were to prioritize, I would                      
prioritize it that and let the consumer beware and they can take               
care of their own problems, I mean, if it came to that.  So I                  
believe that -- I agree with Representative Berkowitz that I think             
there would be more than enough to pay for this person if they did             
actually aggressively look at these cases.  And Representative                 
Bunde said that in telephone scams, you're absolutely right, it's              
very difficult to get your finger on who they are.  But there other            
scams besides telephone scams and by working with attorney generals            
in other states, we can recoup those issues - have in the past.  I             
was scammed once, or on a group of scams, and they aggressively got            
after them and I got my money back.  So that's been 20 years ago."             
                                                                               
Number 1495                                                                    
                                                                               
STEVE CONN, Executive Director, Alaska Public Interest Research                
Group (AKPRIG), testified via teleconference from Anchorage.  He               
informed the committee that a week ago he was able to provide                  
Representative Porter with a report that AKPRIG produced where they            
examined the budget review units (BRUs) of the previous Consumer               
Protection Section for fiscal years 78 through 90.  The amount that            
they were able to recover was in the hundreds of thousands of                  
dollars.  He noted it was not exclusively to the filing of law                 
suits.  Mr. Conn said, "The law suits, at most, throughout the                 
entire period numbered 28 and 25 and those were rare.  The average             
was more like 15 law suits.  The way they were able to handle most             
of these complaints was through mediation and what we have called              
alternative dispute resolutions.  So in other words, to the                    
question of whether this would be pay as you go, the answer is very            
probably so long as the individual who is bringing law suits is                
backed up by volunteers, paralegals, other people who using that               
version in the background as an alternate deterrent is able to --              
these other people are able to sit down and work out compromises.              
And so (indisc.) argues and I hope the Representative Porter could             
share that with you that it's really mediation that is at the heart            
of this back stop by an attorney freed up ready willing and able to            
deal in the courts with those people who are totally recalcitrant              
and refuse to work out some sort of a compromise."                             
                                                                               
Number 1603                                                                    
                                                                               
REPRESENTATIVE PORTER referred to the settlement results from                  
mediation and asked Mr. Conn if they ever resulted in a settlement             
of a fine amount that would actually go to the state or were they              
settlements that resulted in the victim being compensated.                     
                                                                               
MR. CONN said they were a combination of both, but loads of money              
went to the state.  He said, "The problem is for a consumer                    
advocate or for a lawmaker is once we've lost that section and the             
BRUs associated with that section, the statistics are drifted out              
of existence, but during that period - that long period for fiscal             
year 78 to fiscal year 90 the dollars recovered and reported to the            
legislature were -- I'll just throw a few of these figures out -               
$210,000 in 78, $192,000 in 79.  I'm going to skip because I know              
you're busy, $379,000 in fiscal year 82, $344,000 in fiscal year               
85, all the way down to the last one that we have records for,                 
$100,000 recouped by the state in fiscal year 90.  In other words,             
this is quite serious money that a process that is backed-stopped              
by the deterrent of lawsuits and very, very, very slow number of               
lawsuits indeed, but it involves mostly settlements.  This is                  
serious money that the state can bring into (indisc.).  And as to              
the discussions by the ladies and gentlemen there, that was very               
interesting.  I myself have wondered for more than nine years,                 
since I've been with Alaska Public Interest Research Group, why the            
state does not see the fiscal opportunity here of not only                     
protecting honest business people and the economic climate in the              
state, but also bringing in some much needed resources to ... in               
many other areas such as child protection."                                    
                                                                               
Number 1714                                                                    
                                                                               
REPRESENTATIVE PORTER indicated he has the report that Mr. Conn                
spoke of and said he would be glad to share it with the sponsor and            
the committee.                                                                 
                                                                               
CHAIRMAN GREEN said he can see how the prosecutor might feel there             
are higher and better things to do.  He said it seems to him that              
this might be an area where they could contract it out.                        
                                                                               
REPRESENTATIVE BERKOWITZ said he thinks that there may be problems             
with contracting out these services under current law.                         
                                                                               
Number 1746                                                                    
                                                                               
REPRESENTATIVE CROFT said if the committee was able to get a fiscal            
note that says it costs $145,000 and raises $145,000, it would                 
still run into a budgetary problem.  Even fiscally neutral measures            
can be stopped by budget cutting itself.  He said $145,000 is not              
increasing the fiscal gap, but it is increasing the budget.                    
                                                                               
CHAIRMAN CROFT agreed with Representative Croft.                               
                                                                               
REPRESENTATIVE JAMES stated, "I argued that vehemently last year               
when they passed the designated program receipts where they are                
going to add them up separately.  And they said that's not going to            
make a difference, but why bother to have designated programs                  
receipts in a column by themselves if they're not going to consider            
program receipts when they make the budget?"                                   
                                                                               
REPRESENTATIVE BERKOWITZ said it seems to him that is a battle that            
shouldn't be raised in the Judiciary Committee.                                
                                                                               
CHAIRMAN GREEN said that is correct as it is a finance issue.                  
                                                                               
Number 1802                                                                    
                                                                               
REPRESENTATIVE BERKOWITZ made a motion to move CSSSHB 49(L&C) out              
of committee with the attached fiscal notes.                                   
                                                                               
REPRESENTATIVE JAMES said she would object for the purpose of                  
amending the fiscal note or to get another one.                                
                                                                               
REPRESENTATIVE CROFT said he would ask for another fiscal note.                
                                                                               
REPRESENTATIVE JAMES said, "I would (indisc.) that I would prefer              
not that fiscal note but another fiscal note to send it on,                    
otherwise I would remove my objection."                                        
                                                                               
CHAIRMAN GREEN said, "So you have removed your objection and you               
would request a revised fiscal note?"                                          
                                                                               
REPRESENTATIVE CROFT said he would make the request for a revised              
fiscal note.                                                                   
                                                                               
CHAIRMAN GREEN said there has been a recommendation to move the                
bill from committee.  He asked if there was an objection.  Hearing             
none, CSSSHB 49(L&C) moved out the House Judiciary Committee.                  
                                                                               
ADJOURNMENT                                                                    
                                                                               
Number 1839                                                                    
                                                                               
CHAIRMAN GREEN adjourned the House Judiciary Standing Committee                
meeting at 3:15 p.m.                                                           

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