Legislature(2019 - 2020)BARNES 124

04/29/2019 01:00 PM House RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 43 EXTEND BIG GAME BOARD; OUTFITTER LICENSE TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
*+ HB 138 NATIONAL RESOURCE WATER DESIGNATION TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         April 29, 2019                                                                                         
                           1:00 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative John Lincoln, Co-Chair                                                                                           
Representative Geran Tarr, Co-Chair                                                                                             
Representative Grier Hopkins, Vice Chair                                                                                        
Representative Sara Hannan                                                                                                      
Representative Ivy Spohnholz                                                                                                    
Representative Chris Tuck                                                                                                       
Representative Dave Talerico                                                                                                    
Representative George Rauscher                                                                                                  
Representative Sara Rasmussen                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR SENATE BILL NO. 43(FIN)                                                                                                  
"An  Act  extending   the  termination  date  of   the  Big  Game                                                               
Commercial Services Board; relating  to a person's eligibility to                                                               
hold   a  registered   guide-outfitter  license,   master  guide-                                                               
outfitter  license, class-A  assistant  guide license,  assistant                                                               
guide  license,  or transporter  license;  and  providing for  an                                                               
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 138                                                                                                              
"An Act requiring  the designation of state  water as outstanding                                                               
national  resource  water  to  occur   in  statute;  relating  to                                                               
management  of   outstanding  national  resource  water   by  the                                                               
Department of  Environmental Conservation;  and providing  for an                                                               
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  43                                                                                                                  
SHORT TITLE: EXTEND BIG GAME BOARD; OUTFITTER LICENSE                                                                           
SPONSOR(s): SENATOR(s) WILSON                                                                                                   
                                                                                                                                
02/04/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/04/19       (S)       RES, FIN                                                                                               
02/20/19       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
02/20/19       (S)       Heard & Held                                                                                           
02/20/19       (S)       MINUTE(RES)                                                                                            
02/27/19       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
02/27/19       (S)       Moved SB 43 Out of Committee                                                                           
02/27/19       (S)       MINUTE(RES)                                                                                            
03/01/19       (S)       RES RPT  4DP 1NR 1AM                                                                                   
03/01/19       (S)       DP: BIRCH, KIEHL, COGHILL, GIESSEL                                                                     
03/01/19       (S)       NR: BISHOP                                                                                             
03/01/19       (S)       AM: REINBOLD                                                                                           
03/13/19       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/13/19       (S)       Heard & Held                                                                                           
03/13/19       (S)       MINUTE(FIN)                                                                                            
03/29/19       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/29/19       (S)       Heard & Held                                                                                           
03/29/19       (S)       MINUTE(FIN)                                                                                            
04/09/19       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/09/19       (S)       Moved CSSB 43(FIN) Out of Committee                                                                    
04/09/19       (S)       MINUTE(FIN)                                                                                            
04/10/19       (S)       FIN RPT CS  3DP 4NR NEW TITLE                                                                          
04/10/19       (S)       DP: VON IMHOF, MICCICHE, WILSON                                                                        
04/10/19       (S)       NR:   STEDMAN,   SHOWER,   WIELECHOWSKI,                                                               
                         BISHOP                                                                                                 
04/17/19       (S)       TRANSMITTED TO (H)                                                                                     
04/17/19       (S)       VERSION: CSSB 43(FIN)                                                                                  
04/22/19       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/22/19       (H)       RES, FIN                                                                                               
04/29/19       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 138                                                                                                                  
SHORT TITLE: NATIONAL RESOURCE WATER DESIGNATION                                                                                
SPONSOR(s): REPRESENTATIVE(s) KOPP                                                                                              
                                                                                                                                
04/17/19       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/17/19       (H)       RES, FIN                                                                                               
04/29/19       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR DAVID WILSON                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As the sponsor, introduced CSSB 43(FIN).                                                                 
                                                                                                                                
HENRY TIFFANY IV, Chair, Registered Guide-Outfitter                                                                             
Big Game Commercial Services Board                                                                                              
Division of Corporations, Business and Professional Licensing                                                                   
Department of Commerce, Community & Economic Development (DCCED)                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions regarding CSSB 43(FIN).                                                               
                                                                                                                                
SARA CHAMBERS, Director                                                                                                         
Division of Corporations, Business, and Professional Licensing                                                                  
Department of Commerce, Community & Economic Development (DCCED)                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions regarding CSSB 43(FIN).                                                               
                                                                                                                                
KRIS CURTIS, CPA, CISA, Legislative Auditor                                                                                     
Division of Legislative Audit                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:    During   the  hearing  of  CSSB  43(FIN),                                                           
reviewed  the  division's  2018  audit report  of  the  Big  Game                                                               
Commercial Services Board.                                                                                                      
                                                                                                                                
KURT WHITEHEAD, Master Guide-Outfitter                                                                                          
Klawock, Alaska                                                                                                                 
POSITION  STATEMENT:    During   the  hearing  of  CSSB  43(FIN),                                                             
testified  in  support  of  extending  the  Big  Game  Commercial                                                               
Services Board.                                                                                                                 
                                                                                                                                
WAYNE KUBAT, Master Guide-Outfitter, Vice President                                                                             
Alaska Professional Hunters Association (APHA)                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of CSSB 43(FIN).                                                                    
                                                                                                                                
MARK RICHARDS, Executive Director                                                                                               
Resident Hunters of Alaska (RHAK)                                                                                               
Fairbanks, Alaska                                                                                                               
POSITION  STATEMENT:    During   the  hearing  of  CSSB  43(FIN),                                                             
testified in opposition to a  five-year extension of the Big Game                                                               
Commercial Services Board and suggested a two-year extension.                                                                 
                                                                                                                                
NATHAN TURNER, Trapper, Registered Guide-Outfitter                                                                              
Fairbanks, Alaska                                                                                                               
POSITION  STATEMENT:    During   the  hearing  of  CSSB  43(FIN),                                                             
testified  in support  of a  six-year extension  of the  Big Game                                                               
Commercial Services Board  and in support of  the proposed master                                                               
guide-outfitter qualifications.                                                                                                 
                                                                                                                                
VIRGIL UMPHENOUR, Master Guide-Outfitter                                                                                        
North Pole, Alaska                                                                                                              
POSITION STATEMENT:  Testified in support of CSSB 43(FIN).                                                                    
                                                                                                                                
REPRESENTATIVE CHUCK KOPP                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As the sponsor, introduced HB 138.                                                                       
                                                                                                                                
EARL CRAPPS, Section Manager                                                                                                    
Division of Water                                                                                                               
Department of Environmental Conservation (DEC)                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions regarding HB 138.                                                                     
                                                                                                                                
KEN TRUITT, Staff                                                                                                               
Representative Chuck Kopp                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  On behalf of Representative Kopp, sponsor,                                                               
answered questions regarding HB 138.                                                                                            
                                                                                                                                
NILS ANDREASSEN, Executive Director                                                                                             
Alaska Municipal League                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 138.                                                                          
                                                                                                                                
KIMBERLY STRONG, Tribal Council President                                                                                       
Chilkat Indian Village                                                                                                          
Klukwan, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in opposition to HB 138.                                                                       
                                                                                                                                
JONES HOTCH Jr., Vice President                                                                                                 
Chilkat Indian Village                                                                                                          
Klukwan, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in opposition to HB 138.                                                                       
                                                                                                                                
SHANNON DONAHUE                                                                                                                 
Haines, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HB 138.                                                                       
                                                                                                                                
JILL JACOB                                                                                                                      
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 138.                                                                       
                                                                                                                                
KIP KERMOIAN                                                                                                                    
Haines, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HB 138.                                                                       
                                                                                                                                
BETSEY BURDETT                                                                                                                  
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 138.                                                                       
                                                                                                                                
JAN CONITZ                                                                                                                      
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 138.                                                                       
                                                                                                                                
DOUG WOODBY                                                                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HB 138.                                                                       
                                                                                                                                
DEANTHA CROCKETT, Executive Director                                                                                            
Alaska Miners Association (AMA)                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 138.                                                                          
                                                                                                                                
JESSICA PLACHTA, Executive Director                                                                                             
Lynn Canal Conservation (LCC)                                                                                                   
Haines, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HB 138.                                                                       
                                                                                                                                
LOUIE FLORA, Director                                                                                                           
Government Affairs                                                                                                              
The Alaska Center                                                                                                               
Homer, Alaska                                                                                                                   
POSITION STATEMENT:  Testified in opposition to HB 138.                                                                       
                                                                                                                                
GUY ARCHIBALD                                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HB 138.                                                                       
                                                                                                                                
SARAH DAVIDSON, Program Manager                                                                                                 
Inside Passage Waters                                                                                                           
Southeast Alaska Conservation Council (SEACC)                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HB 138.                                                                       
                                                                                                                                
HEATHER EVOY                                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HB 138.                                                                       
                                                                                                                                
PHILLIP MOSER                                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HB 138.                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:00:47 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GERAN   TARR  called   the  House   Resources  Standing                                                             
Committee meeting  to order at  1:00 p.m.   Representatives Tuck,                                                               
Hannan, Hopkins,  Lincoln, and Tarr  were present at the  call to                                                               
order.    Representatives  Rauscher,  Rasmussen,  Spohnholz,  and                                                               
Talerico arrived as the meeting was in progress.                                                                                
                                                                                                                                
        SB  43-EXTEND BIG GAME BOARD; OUTFITTER LICENSE                                                                     
                                                                                                                                
1:01:27 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR announced  the first order of business  would be CS                                                               
FOR SENATE  BILL NO. 43(FIN),  "An Act extending  the termination                                                               
date of  the Big  Game Commercial Services  Board; relating  to a                                                               
person's  eligibility   to  hold  a   registered  guide-outfitter                                                               
license,  master  guide-  outfitter  license,  class-A  assistant                                                               
guide license,  assistant guide license, or  transporter license;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
1:01:49 PM                                                                                                                    
                                                                                                                                
SENATOR DAVID  WILSON, Alaska State Legislature,  sponsor, stated                                                               
CSSB  43(FIN)  would  extend  the termination  of  the  Big  Game                                                               
Commercial Services Board  until 6/30/24, which is  one year less                                                               
than the  six years  recommended by  the Division  of Legislative                                                               
Audit.   He  explained that  the board  consists of  two licensed                                                               
registered  guide-outfitters,  two   licensed  transporters,  two                                                               
private landholders, two public members,  and one member from the                                                               
Board of Game.                                                                                                                  
                                                                                                                                
SENATOR WILSON  related that an  audit of the board  conducted by                                                               
the Division  of Legislative Audit made  three recommendations to                                                               
improve the  board:   1) the  Division of  Corporations, Business                                                               
and   Professional   Licensing   director  should   improve   the                                                               
management oversight  to procedures to ensure  that documentation                                                               
is obtained, reviewed, and retained  to support licensure; 2) the                                                               
division's  chief  investigator   should  increase  oversight  to                                                               
improve the  timeliness of investigations;  and 3) the  Office of                                                               
the Governor,  Boards and Commissions  director should  work with                                                               
the board to identify potential  applications in a timely manner.                                                               
In regard  to the  timeliness of  investigations, he  pointed out                                                               
that multiple  agencies are involved  and only 37 cases  are open                                                               
as  of today,  with of  those  13 being  Alaska Wildlife  Trooper                                                               
cases  over  which   [the  division]  has  no   control  for  the                                                               
timeliness.   He stated it  was recognized that  more supervisory                                                               
rapport is needed for more quality control.                                                                                     
                                                                                                                                
SENATOR WILSON  said the  division has  responded to  the audit's                                                               
recommendations by working to add  supervisors in addition to the                                                               
examiner,  as well  as working  to  improve training  procedures.                                                               
There  is a  new chief  investigator, he  continued, and  two new                                                               
senior  investigators have  been  added to  provide more  quality                                                               
assurance.   He stated  the division has  heard the  message from                                                               
Legislative  Audit   and  is   working  to   hold  investigations                                                               
accountable for the paperwork.                                                                                                  
                                                                                                                                
1:04:46 PM                                                                                                                    
                                                                                                                                
SENATOR  WILSON provided  a sectional  analysis of  CSSB 43(FIN).                                                               
He  said:    Section  1,  page  1,  lines  6-8,  would  amend  AS                                                               
08.03.010(c)(9) to extend the Big  Game Commercial Services Board                                                               
for five years,  through June 30, 2024.  Section  2, page 1, line                                                               
9, through page 2, line 16,  would amend AS 08.54.605(a) to allow                                                               
the board  to immediately suspend  a license for  violations that                                                               
already  disqualify  a person  from  receiving  or renewing  that                                                               
license.   Section 3, page  2, line 17,  through page 3,  line 7,                                                               
would   amend   AS   08.54.610(b)   to   increase   the   minimum                                                               
qualifications for a master  guide-outfitter license, including a                                                               
requirement to  have a  clean record  for 15  years.   Section 4,                                                               
page 3,  lines 8-17, would  add new subsections to  AS 08.54.710,                                                               
which allow the board to  revoke a master guide-outfitter license                                                               
if  a  person's  privileges  are  revoked or  if  the  person  is                                                               
convicted of a violation.   A person whose master guide-outfitter                                                               
license is  revoked under  this provision can  still be  issued a                                                               
registered  guide-outfitter license  if  qualified.   Section  5,                                                               
page 3, line 18, would add an immediate effective date.                                                                         
                                                                                                                                
SENATOR  WILSON stressed  the board  plays an  important role  in                                                               
managing  the  activities  of  commercial  game  hunters  in  the                                                               
interest  of Alaska's  wildlife resources.   He  reminded members                                                               
that the  bill addresses  whether the  board should  continue its                                                               
work and does not address the function of the board.                                                                            
                                                                                                                                
1:06:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  TARR noted  Section 1  is clearly  the extension.   She                                                               
observed Section 2  would add the word "hold" to  that section of                                                               
statute.  She asked whether  she is correct in understanding that                                                               
Section  2 isn't  about the  initial receiving  or renewing  of a                                                               
license,  but  is about  putting  a  restriction on  someone  who                                                               
already  holds  a   license  if  the  person   has  the  problems                                                               
identified in [paragraphs (1) and (2) of Section 2].                                                                            
                                                                                                                                
SENATOR WILSON replied yes.                                                                                                     
                                                                                                                                
1:07:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  inquired whether the bill  addresses "real                                                               
life" situations  in which  the board  was unable  to act  or the                                                               
audit found the  board did not act appropriately,  or whether the                                                               
bill addresses situations that are speculative in nature.                                                                       
                                                                                                                                
SENATOR WILSON  replied that during  a hearing before  the Senate                                                               
Finance  Committee it  was learned  that [a  license holder]  can                                                               
continue to  provide guiding services  for over two  and one-half                                                               
years  after  being  found  guilty of  a  violation  while  going                                                               
through the  appeals process  after a guilty  verdict.   Thus, he                                                               
said,  the  board  requested  the authority  to  put  a  person's                                                               
license on hold during adjudication of the appeals process.                                                                     
                                                                                                                                
REPRESENTATIVE HANNAN  offered her understanding that  there were                                                               
real life  examples that caused  the board to ask  for additional                                                               
tools to "hold" a license and this provision would do that.                                                                     
                                                                                                                                
SENATOR WILSON responded yes, there have been several examples.                                                                 
                                                                                                                                
1:09:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOPKINS brought  attention  to page  2, line  29,                                                               
through page 3, line 1, of the bill, which state:                                                                               
                                                                                                                                
     (3) submits  a list  to the department  of at  least 45                                                                
     [25]  clients  for  whom   the  person  has  personally                                                                    
     provided guiding or outfitting  services and the person                                                                    
     receives  a favorable  evaluation from  30 [10]  of the                                                                
     clients selected from the list by the department;                                                                          
                                                                                                                                
REPRESENTATIVE  HOPKINS   requested  clarification  as   to  what                                                               
constitutes a "favorable evaluation."                                                                                           
                                                                                                                                
SENATOR WILSON deferred to [Mr. Henry Tiffany] for an answer.                                                                   
                                                                                                                                
1:09:58 PM                                                                                                                    
                                                                                                                                
HENRY  TIFFANY IV,  Chair, Registered  Guide-Outfitter, Big  Game                                                               
Commercial  Services  Board  (BGCSB), Division  of  Corporations,                                                               
Business  and  Professional  Licensing, Department  of  Commerce,                                                               
Community &  Economic Development  (DCCED), deferred to  Ms. Sara                                                               
Chambers  since  it is  the  division  that reviews  the  license                                                               
applications.  He advised that  the board extensively deliberated                                                               
on  the proposed  changes within  the  bill and  is in  unanimous                                                               
support  of the  proposed  increase in  the  number of  favorable                                                               
recommendations.   He further advised that  the proposed increase                                                               
in  favorable recommendations  would be  a more  standard number.                                                               
He also noted  that the proposed language in paragraph  (4) of 15                                                               
years is also standard in other professions.                                                                                    
                                                                                                                                
1:12:20 PM                                                                                                                    
                                                                                                                                
SARA CHAMBERS, Director, Division  of Corporations, Business, and                                                               
Professional  Licensing,  Department  of  Commerce,  Community  &                                                               
Economic Development (DCCED), explained  that the vetting process                                                               
for  a registered  guide  who  is applying  for  a master  guide-                                                               
outfitter license, includes  providing a list of  clients who are                                                               
then contacted by  the division for information  pertinent to the                                                               
applicant's proficiency  in the  field that  would relate  to the                                                               
scope  of what  a guide-outfitter  is allowed  to do.   She  said                                                               
registered and master guides are  in charge of people's lives and                                                               
thus  must  be  in  compliance   with  all  applicable  laws  and                                                               
regulations for  hunting as  well as land  use, and  the division                                                               
asks clients  to review  their experience with  that guide.   She                                                               
stated the  board had an  opportunity to review CSSB  43(FIN) and                                                               
supports [the changes proposed in paragraph (3)].                                                                               
                                                                                                                                
1:14:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOPKINS  inquired as to  a time period  over which                                                               
those 45 clients would have had to work with that guide.                                                                        
                                                                                                                                
MS. CHAMBERS answered she is unsure  of whether there is a window                                                               
of time.  She said she and  Mr. Tiffany go back and forth because                                                               
she has the administrative part  and he has the qualitative part.                                                               
She said her  understanding through working on this  bill is that                                                               
the  timeframe  would  be  during the  life  of  the  applicant's                                                               
registered guide-outfitter license,  so it would be  a client who                                                               
had contracted with the guide.   She explained that the structure                                                               
of  guiding goes  from an  assistant guide  to class-A  assistant                                                               
guide to  a registered  guide to a  master guide-outfitter.   The                                                               
dividing line between the two  assistants and the two contracting                                                               
guides, she  continued, is  that [the  contracting guide]  is the                                                               
boss and  actually signs the contract  with the client.   So, she                                                               
added, it  would need to  be within  the life of  the applicant's                                                               
registered  guide activity,  but  she  is unsure  if  there is  a                                                               
window of time unless otherwise stated in the bill.                                                                             
                                                                                                                                
1:15:49 PM                                                                                                                    
                                                                                                                                
MR. TIFFANY  clarified that  for a  client to  qualify as  a name                                                               
submitted   for  a   master   guide-outfitter  application,   the                                                               
registered  guide (at  that point)  doesn't  necessarily have  to                                                               
have been  a contracting  guide for that  individual client.   He                                                               
explained  that there  are many  guides within  Alaska, and  some                                                               
don't  ever contract  hunts; they  work for  other registered  or                                                               
master  guides, but  they may  still  choose to  obtain a  master                                                               
guide  license and  it  isn't  wanted to  hinder  that.   If  the                                                               
applicant  has  physically  guided  a client  in  the  field,  he                                                               
continued, then  that client's name  would be applicable  for the                                                               
applicant to  put on his/her  application towards a  master guide                                                               
license.  He offered his  belief that there isn't any stipulation                                                               
that it needs  to be within a  certain time limit of  a couple of                                                               
years  because the  number of  clients divided  by the  number of                                                               
years proposed  comes to three  clients a  year, and most  of the                                                               
guides that  either contract  or guide  clients for  someone else                                                               
have about three or more clients per year.                                                                                      
                                                                                                                                
1:17:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOPKINS  offered his  understanding that  there is                                                               
no window  for the  timeframe of  those 45  people to  give their                                                               
evaluations; it  could be any time  in the last 40  years if that                                                               
person has  been a registered  guide, but three clients  per year                                                               
is a logical number.                                                                                                            
                                                                                                                                
MR. TIFFANY  confirmed there is  no limitation.   If it  took the                                                               
applicant 40 years to collect the  right number of names, then so                                                               
be it, he said, or if it took fewer years that is alright also.                                                                 
                                                                                                                                
REPRESENTATIVE HOPKINS  asked whether  the division  contacts all                                                               
45 clients.   He further asked  whether that is standard  for the                                                               
division providing other types of occupational licenses.                                                                        
                                                                                                                                
1:18:50 PM                                                                                                                    
                                                                                                                                
MS. CHAMBERS  replied the division solicits  that information for                                                               
a variety  of license  types and depends  upon how  the [related]                                                               
statute  is written.    She said  the division  has  quite a  few                                                               
license  types  that  require  some  sort  of  evaluation.    For                                                               
example, she continued, for  healthcare or mechanical professions                                                               
evaluations  are solicited  from supervisors  or others  who have                                                               
worked closely  with the  applicant in a  similar capacity.   So,                                                               
she added, it  is unusual because it is  somewhat subjective, but                                                               
it is pertinent and relative to that type of work.                                                                              
                                                                                                                                
1:19:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  stated that the proposed  increases in the                                                               
number of  clients that  must be  submitted [from  25 to  45] and                                                               
number of  favorable evaluations [from 10  to 30] is a  huge jump                                                               
given the  small number of  clients per  year and the  20-40 year                                                               
span  of time  in the  applicant's  career.   She submitted  that                                                               
given the  length of time,  some of  those clients are  no longer                                                               
alive and many  are foreign nationals, and therefore  it would be                                                               
a huge  increase in  the burden  for both  the applicant  and the                                                               
division to  contact all those  clients and receive  30 favorable                                                               
evaluations.    She  further submitted  that  this  would  narrow                                                               
things so much that hardly anyone would qualify.                                                                                
                                                                                                                                
SENATOR WILSON  responded that  the master  guide-outfitter title                                                               
is  a prestigious  and high  standard for  guides, and  the title                                                               
carries additional  privileges for  guides as well  as additional                                                               
responsibilities  to clients.   He  said it  needs to  be ensured                                                               
that these folks  are the top ethical guides who  will follow the                                                               
guidelines and  regulations and therefore setting  the bar higher                                                               
for obtaining the master guide-outfitter license was wanted.                                                                    
                                                                                                                                
1:22:22 PM                                                                                                                    
                                                                                                                                
MS. CHAMBERS agreed  and explained that master  guide is somewhat                                                               
of an  honorary title  because the  registered guide  can perform                                                               
the same guide/outfitting duties as  a master guide.  She related                                                               
that when  reviewing this the  division asked the  same questions                                                               
of whether it  seemed reasonable and deferred to the  board.  She                                                               
continued:                                                                                                                      
                                                                                                                                
     It  is not  prohibiting  anyone from  gaining a  higher                                                                    
     level of  economic opportunity  because the  master and                                                                    
     the registered guides can do  the same things.  But the                                                                    
     master  guide does  have that  value added,  as Senator                                                                    
     Wilson said,  that it is  a title recognizing  that you                                                                    
     are at the  very top of your game.   It doesn't get, in                                                                    
     the United  States, any more  exclusive in  the guiding                                                                    
     industry than  that.   But it  is not  a tier  where we                                                                    
     might look at trade issues  and restriction of trade by                                                                    
     saying this  is really hard  to get and it  might serve                                                                    
     only an  elite few,  which is preventing  everyone here                                                                    
     from being  able to earn  the same living.   They're on                                                                    
        the same par, at least as far as their economic                                                                         
     opportunities are concerned.                                                                                               
                                                                                                                                
1:23:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN noted that  the previous requirement was 10                                                               
out of 25 clients over a 12-  to 15-year period and that the bill                                                               
would increase the  look back period from which  clients could be                                                               
submitted  and would  triple the  number  of positive  responses.                                                               
She  questioned whether  the fiscal  note of  $35,000 [Identifier                                                               
SB043CS(FIN)-DCCED-CBPL-04-09-19]  would  be sufficient  to  fund                                                               
the  investigation of  an additional  20 positive  evaluations on                                                               
every  application.   She further  questioned whether  the guides                                                               
who are  potentially qualified to  apply for this feel  that they                                                               
can produce  those names and  have current contact  with clients.                                                               
Representative  Hannan said  she wants  to ensure  that this  big                                                               
leap in numbers is being done  for the right reasons and not just                                                               
because there were  some people with lower licenses  who were bad                                                               
actors,  which would  be a  separate issue.   She  agreed [master                                                               
guides] are  the best of  the best  and therefore should  not get                                                               
poor evaluations.   She  asked whether  the board,  the industry,                                                               
and the department think the proposed thresholds are manageable.                                                                
                                                                                                                                
MS. CHAMBERS answered  that the department does  not anticipate a                                                               
problem with  the increase in  its administrative workload.   She                                                               
deferred  to Mr.  Tiffany  to speak  to  the board's  discussion,                                                               
which included master guides, in the vetting of those numbers.                                                                  
                                                                                                                                
1:26:13 PM                                                                                                                    
                                                                                                                                
MR. TIFFANY concurred  that a master guide license  is, more than                                                               
anything, an honorary title.  He  said it does not allow, from an                                                               
economic  standpoint, an  individual to  necessarily do  anything                                                               
more than  a registered guide  can do, except that  master guides                                                               
can advertise  themselves and carry  themselves with  that title.                                                               
In its  discussions the  board understood this,  he related.   He                                                               
explained that  a total of  45 names submitted with  30 favorable                                                               
recommendations over  a 15-year  period is very  feasible because                                                               
an applicant  must have been a  registered guide for at  least 15                                                               
years and that would be guiding 3  clients a year.  He added that                                                               
many guides take 10-15 clients in  one year.  He stated the board                                                               
doesn't think  it is onerous or  a burden on applicants  who want                                                               
to  obtain  the  title  because  they  have  proven  under  these                                                               
proposed changes that they have  been exemplary in the profession                                                               
for a  long time  with no  violations.  He  pointed out  that the                                                               
board was in  unanimous agreement on that and doesn't  feel it is                                                               
terribly burdensome.   He related  that one of the  board members                                                               
is  currently a  registered  guide and  getting  close under  the                                                               
current regulations  to being  eligible to  apply for  his master                                                               
guide license.  He said  this board member fully understands that                                                               
this would  prolong the time it  takes him to apply  for a master                                                               
guide license and yet this board  member voted in full support of                                                               
these changes.                                                                                                                  
                                                                                                                                
REPRESENTATIVE HANNAN said she is fine with the answer.                                                                         
                                                                                                                                
1:28:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK offered his  understanding that under current                                                               
law,  AS 08.54.720(a),  a  licensed master  guide  does not  lose                                                               
his/her title as a master guide if he/she commits an offense.                                                                   
                                                                                                                                
SENATOR WILSON confirmed Representative Tuck's understanding.                                                                   
                                                                                                                                
REPRESENTATIVE  TUCK  stated  his   support  for  [CSSB  43(FIN)]                                                               
because it  would provide conditions  under which a  master guide                                                               
title can be  lost.  He observed that Section  4, subsection (l),                                                               
would  provide that  a master  guide-outfitter  who lost  his/her                                                               
license  could  still  be  issued  a  registered  guide-outfitter                                                               
license  and, he  surmised, would  have to  wait 15  years before                                                               
he/she could get back the title of master.                                                                                      
                                                                                                                                
SENATOR WILSON replied yes.                                                                                                     
                                                                                                                                
1:30:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  inquired whether the  evaluations could                                                               
be  completed  via a  written  or  online  survey instead  of  an                                                               
interview.                                                                                                                      
                                                                                                                                
MS. CHAMBERS responded  she will check with staff,  but is pretty                                                               
sure the  clients are contacted  in writing.   She said  it would                                                               
make  her a  little  anxious to  believe  that someone's  license                                                               
depends upon  verbal note taking,  so she  is certain there  is a                                                               
written record  of that, but  she doesn't know  specifically what                                                               
that looks like.                                                                                                                
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ offered her  understanding that a letter                                                               
is sent out to which clients  respond in writing, rather than the                                                               
clients being called and interviewed.                                                                                           
                                                                                                                                
MS. CHAMBERS answered yes; clients respond in writing.                                                                          
                                                                                                                                
1:32:26 PM                                                                                                                    
                                                                                                                                
KRIS  CURTIS,   CPA,  CISA,  Legislative  Auditor,   Division  of                                                               
Legislative Audit,  Alaska State Legislature,  directed attention                                                               
to  the document  in  the committee  packet  entitled, "A  Sunset                                                               
Review  of the  Department  of Commerce,  Community and  Economic                                                               
Development, Big  Game Commercial Services Board  (board)," dated                                                               
9/14/18, Audit  Control Number 08-20114-19.   She  explained that                                                               
the purpose of a sunset audit  is to determine whether a board or                                                               
commission is serving the public's  interest in whether it should                                                               
be  extended.   She stated  the audit  found that  this board  is                                                               
serving  the   public's  interest   by  conducting   meetings  in                                                               
accordance  with  applicable  laws, by  amending  regulations  to                                                               
improve  the occupations  under  its purview,  and by  supporting                                                               
changes made by  the Department of Law to  improve the timeliness                                                               
of the disciplinary  process.  Additionally, she  said, the audit                                                               
found  that this  board had  eliminated  the deficit  of over  $1                                                               
million that  was reported in the  2015 sunset audit.   She noted                                                               
the  audit  also  concluded  that the  board  licenses  were  not                                                               
consistently supported  by adequate documentation, a  high number                                                               
of  investigations had  unjustified  periods  of inactivity,  and                                                               
three board  positions were vacant  for an extended period.   She                                                               
said the audit recommended a six-year extension for this board.                                                                 
                                                                                                                                
MS. CURTIS  turned to page 8  of the audit, Exhibit  2, Licensing                                                               
Activity, and reported that as of  May 2018 there were a total of                                                               
1,219 active  licenses, a 20  percent reduction when  compared to                                                               
the 2015 sunset audit.  She  related that, according to the board                                                               
chair, this  decrease is  due in  part to  guides retiring  and a                                                               
decreased interest  in the profession.   Additionally,  she said,                                                               
the  chair reported  that there  were fewer  transporters because                                                               
many changed  operating as air  taxis to avoid  the transporter's                                                               
reporting  requirements  and  fees  -  there  were  151  licensed                                                               
transporters as  of April 2015 compared  to 90 as of  May 2018, a                                                               
40 percent reduction in the number of transporters.                                                                             
                                                                                                                                
MS. CURTIS moved to page 10  of the audit, Exhibit 3, Schedule of                                                               
Revenues and  Expenditures, and said  the board had a  surplus of                                                               
[$132,224] at  the end at  fiscal year 2018  (FY 18).   She noted                                                               
this is significant given the  board's deficit of [$1,120,051] at                                                               
the end of FY 15.                                                                                                               
                                                                                                                                
1:34:28 PM                                                                                                                    
                                                                                                                                
MS. CURTIS  stated the audit  contains three  recommendations for                                                               
improvement.   She  said Recommendation  No.  l, page  14 of  the                                                               
audit,  is that  the director  of the  Division of  Corporations,                                                               
Business,  and  Professional  Licensing  (DCBPL)  should  improve                                                               
management oversight procedures  to ensure required documentation                                                               
is obtained,  reviewed, and retained  to support licensure.   She                                                               
noted the audit tested 25 new  licenses and found errors in 14 of                                                               
them.   She drew attention  to the errors  listed on page  14 and                                                               
pointed out that the more  serious errors were missing background                                                               
checks and a lack of  adequate investigatory review.  She related                                                               
that, according  to the DCBPL  management, turnover in  the staff                                                               
that supported  the board contributed  to the errors.   She added                                                               
the audit also noted a lack of supervisory review.                                                                              
                                                                                                                                
MS. CURTIS  said Recommendation No. 2,  page 15 of the  audit, is                                                               
that  DCBPL's chief  investigator  should  increase oversight  to                                                               
[improve] the timeliness of investigations.   She noted the audit                                                               
tested 22  investigations that  had been open  for over  180 days                                                               
during  the  audit  period  and   found  periods  of  unjustified                                                               
inactivity for 20 of the 22.   She related that, according to the                                                               
chief investigator,  periods of  inactivity were  due in  part to                                                               
inadequate  resources  to  investigate   the  high  caseload  and                                                               
supervisors not adequately monitoring the cases.                                                                                
                                                                                                                                
MS. CURTIS  said Recommendation No. 3,  page 16 of the  audit, is                                                               
that the Office of the  Governor, Boards and Commissions director                                                               
should work with the board  to identify potential applicants in a                                                               
timely manner.   She noted that from July 2015  through May 2018,                                                               
two board positions  were vacant for six months due  to a lack of                                                               
interested  applicants,  and the  board  position  occupied by  a                                                               
member of the  Board of Game was vacant for  eight months because                                                               
the Office of the Governor was  not notified of the vacancy.  She                                                               
related  that, according  to Boards  and  Commissions staff,  the                                                               
transporter and private landholder  board positions are difficult                                                               
to fill due to a lack of qualified candidates.                                                                                  
                                                                                                                                
MS. CURTIS drew  attention to the agency responses  found on page                                                               
25 of the audit.  She  related that the DCCED commissioner agrees                                                               
with Recommendations No. 1 and 2  and has taken action to resolve                                                               
both  recommendations.   Addressing  page 27  of  the audit,  she                                                               
further related that the Office  of the Governor has responded to                                                               
Recommendation No.  3 and  agreed to fill  vacancies in  a timely                                                               
manner.   She  stated that  page  29 provides  the BGCSB  chair's                                                               
response to  Recommendation No.  3 in which  the chair  agreed to                                                               
work  with the  Office of  the Governor  to fill  vacancies in  a                                                               
timely  manner  and stated  that  all  the board  positions  were                                                               
filled at that time.                                                                                                            
                                                                                                                                
1:37:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK requested the date of the previous audit.                                                                   
                                                                                                                                
MS. CURTIS replied May 2015.                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK inquired  whether this  current audit  found                                                               
the same issues that were identified in 2015.                                                                                   
                                                                                                                                
MS.  CURTIS turned  to page  13 and  pointed out  the four  prior                                                               
recommendations from the 2015 audit.   She stated [auditors] felt                                                               
that most of the 2015  recommendations were addressed, especially                                                               
the  $1 million  deficit [third  recommendation].   She said  the                                                               
first recommendation  had to  do with support  to the  board, and                                                               
while [auditors] felt  the support did improve  they identified a                                                               
new  problem   with  the  license   documentation,  so   that  is                                                               
considered a reiteration of a  prior recommendation.  She advised                                                               
that  the problems  with prior  applications  [identified in  the                                                               
fourth recommendation] were dealt with.   But, she continued, the                                                               
problem of  timeliness of investigations  [second recommendation]                                                               
has not been addressed.                                                                                                         
                                                                                                                                
REPRESENTATIVE TUCK asked who conducts the investigations.                                                                      
                                                                                                                                
MS.  CURTIS responded  that  DCBPL  conducts the  investigations.                                                               
The board stays  out of the investigative process  as it performs                                                               
a  semi-judicial role  in ruling  on  an investigation's  results                                                               
once the ruling is brought to the board.                                                                                        
                                                                                                                                
REPRESENTATIVE   TUCK  offered   his   understanding  that   many                                                               
investigation positions  from various  departments are  moving to                                                               
the Department  of Law  (DOL).   He asked  how this  would affect                                                               
efforts to resolve the backload that is had.                                                                                    
                                                                                                                                
MS. CURTIS answered:                                                                                                            
                                                                                                                                
     I don't  think we  know right now  the impact  of that.                                                                    
     There has been an  Administrative Order [No. 306, dated                                                                    
     2/13/19]  to  consolidate   the  investigative  process                                                                    
     within the Department  of Law.  It  is my understanding                                                                    
     this board  is included in  that process.  I  know that                                                                    
     there  has been  some discussion  to have  an audit  on                                                                    
     that process,  looking at  the consolidation,  how that                                                                    
     impacts timeliness,  efficiency, and I  believe there's                                                                    
     work right now to draft an audit request.                                                                                  
                                                                                                                                
1:39:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN inquired  about the idea of  taking all the                                                               
investigators from all of the  agencies and consolidating them in                                                               
the  Department of  Law.   She asked  whether the  audit that  is                                                               
being  requested  is  of  the process  of  the  new  consolidated                                                               
investigations prior to  them being done, or if it  will be given                                                               
some time and then be audited  for whether it is a more efficient                                                               
way to do it.                                                                                                                   
                                                                                                                                
MS. CURTIS replied that she suggested "at least three years."                                                                   
                                                                                                                                
REPRESENTATIVE HANNAN offered her  understanding that it wouldn't                                                               
be  known for  three years.   She  expressed her  concern that  a                                                               
prior recommendation  from a previous  audit is still  an ongoing                                                               
issue.  She continued:                                                                                                          
                                                                                                                                
     If  this board  in five  more years  has an  audit that                                                                    
     again  raises   that  there  is  a   problem  with  the                                                                    
     investigation,   but   this    time   we've   sort   of                                                                    
     structurally  shifted and  ...  we  won't know  whether                                                                    
     that  backlog  is  created  by   it  being  an  ongoing                                                                    
     problem, these  are complex  things to  investigate, or                                                                    
     whether  it   was  because  we've  shifted   how  we've                                                                    
     investigated them.   ... It's not  that I'm encouraging                                                                    
     them to  be held harmless, but  it seems to be  an area                                                                    
     of  concern  for an  industry  that  is profitable  but                                                                    
     complex,   and  seasonal   in   nature,  migratory   in                                                                    
     practice,  and then  we are  trying to  make sure  that                                                                    
     investigations   of   things   that  may   span   legal                                                                    
     boundaries,  because  again  many of  the  clients  who                                                                    
     might be  called as  a witness  in an  investigation of                                                                    
     bad  actors in  the field  could be  foreign nationals.                                                                    
     So  I  could  certainly   see  why  these  are  complex                                                                    
     investigations  to  carry  forward  and  I'm  wondering                                                                    
     whether  the  department  has had  the  opportunity  to                                                                    
     share all  of those concerns  in a global  and specific                                                                    
     way    as   these    dialogues   about    consolidating                                                                    
     investigators to the Department of Law have happened.                                                                      
                                                                                                                                
MS. CHAMBERS responded that those  details would be worked out in                                                               
FY 2020.  She said  the taskforce to implement the Administrative                                                               
Order  for   consolidating  all  the  investigations   under  the                                                               
Department of  Law would begin  in early 2020 and  that questions                                                               
would be asked  of this particular board, the  other 43 licensing                                                               
entities managed by [the Division  of Legislative Audit], as well                                                               
as  all the  rest around  the state.   She  stated she  expects a                                                               
discussion to work  out safeguards and tracking  mechanisms.  She                                                               
said the  administrative order is  a plan that will  be thorough,                                                               
and it  is possible  that [the  Division of  Legislative Audit's]                                                               
investigators may become Department of  Law employees.  They will                                                               
retain  the  same  knowledge,  background,  and  experience  that                                                               
benefit  from  oversight  through  the  Department  of  Law,  she                                                               
advised.  There  are a variety of ways that  this could look, but                                                               
this is just the beginning of the process, she added.                                                                           
                                                                                                                                
1:43:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  addressed  Ms.   Curtis  and  urged  [the                                                               
aforementioned  problem] be  footnoted now  because auditors  are                                                               
probably the  best at footnoting something  and remembering where                                                               
it is and coming back to it.  She continued:                                                                                    
                                                                                                                                
     This has  been in two audits,  yet I don't know  if you                                                                    
     have  any specificity  of where  the  problems and  the                                                                    
     timeline  to  produce  those investigations  have  been                                                                    
     that can  be shared  with the Department  of Law  so it                                                                    
     doesn't have to be relearned  by a new lawyer trying to                                                                    
     figure out  how to  investigate a licensure  issue that                                                                    
     is  in   [an]  unusual   industry.  ...  Each   of  our                                                                    
     investigative  jurisdictions [is]  unique, but  I think                                                                    
     this one  is not only  unique it's quirky. ...  I would                                                                    
     just urge  that we  make sure  we've footnoted  that so                                                                    
     when we  return to this in  five years we don't  go, "A                                                                    
     third   audit  where   the  investigation   backlog  is                                                                    
     overwhelming,"  and  think   that  we've  somehow  been                                                                    
     flawed in it because I think  it is one of those places                                                                    
     where  it's  going   to  be  a  weird   thing  for  the                                                                    
     Department  of Law.  ... The  legal violations  they're                                                                    
     going  to have  straight up  dialed in  ... if  they've                                                                    
     been working  on fish and  game issues  and violations.                                                                    
     But  I  think  that   the  guide  industry,  it's  that                                                                    
     intersect of  a lot  of different elements  of commerce                                                                    
     that  are really  unique, and  I want  to make  sure we                                                                    
     remember that when  we hold someone to  task five years                                                                    
     from now about not doing it right.                                                                                         
                                                                                                                                
1:44:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOPKINS asked  how the  board accumulated  a $1.1                                                               
million deficit in fiscal year 2015.                                                                                            
                                                                                                                                
MS. CURTIS  replied that  in general terms  it may  have involved                                                               
not  raising  fees  timely, as  well  as  incorrectly  allocating                                                               
indirect costs over  the years.  She deferred to  Ms. Chambers to                                                               
answer further.                                                                                                                 
                                                                                                                                
MS. CHAMBERS advised that circa  2012 DCCED discovered inadequate                                                               
checks  and balances  in  its accounting  systems  and DCBPL  was                                                               
allowed  to  provide  incorrect  information  externally  to  its                                                               
boards and to the public.   It was accounted for correctly in the                                                               
old state accounting  system, she continued, but  all the numbers                                                               
and reports given to and utilized  by the boards were not tied to                                                               
the accounting system.  When  this was discovered, she explained,                                                               
DCBPL  worked with  its administrative  services to  rectify that                                                               
and an  exhaustive search through all  data was done to  find out                                                               
where each licensing program actually  stood.  She said some were                                                               
actually doing  better than  what they were  being told  and some                                                               
were not, and  the Big Game Commercial Services Board  was in the                                                               
"very, very  not" category.   Much to its credit,  she continued,                                                               
the board  at that time  committed to  doing whatever it  took to                                                               
get things  done.  She  explained that  the division spent  a few                                                               
years  working hand-in-hand  with the  board assessing  how often                                                               
fees were  being increased appropriately  and whether  there were                                                               
fees that  were not  being captured  to cover  the administrative                                                               
workload that  the statute  requires.   Particularly in  the time                                                               
period  between those  two audits,  she noted,  work was  done to                                                               
calibrate those  fees and now  they are in a  reasonable surplus.                                                               
She advised  that this program  and all the  division's licensing                                                               
programs are  being checked  every year  with the  division's fee                                                               
analysis tool.  The division is  in close contact with the board,                                                               
she  added, because  the board  doesn't want  to go  through that                                                               
again and neither does the division.                                                                                            
                                                                                                                                
1:48:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOPKINS surmised  the increased  user fees  since                                                               
2015 are  paying for the new  positions talked about by  the bill                                                               
sponsor to address the backlog of complaints and concerns.                                                                      
                                                                                                                                
MS. CHAMBERS  confirmed that  licensing fees pay  for all  of the                                                               
division's costs and  noted that those positions  are shared with                                                               
the other programs as well.   She pointed out that the 2018 audit                                                               
covered a  span of three  years, so  the information is  now four                                                               
years  old.   Since the  beginning of  the audit,  she said,  the                                                               
division has  put in a  variety of improvements,  safeguards, and                                                               
additional resources  to address the  issues that were  raised in                                                               
the audit.                                                                                                                      
                                                                                                                                
MS. CHAMBERS continued  and stressed that the  audit findings are                                                               
against the division  and not against the board  itself, which is                                                               
a  body of  volunteers appointed  to govern.   The  licensing and                                                               
investigative issues are the responsibility  of the division, she                                                               
pointed  out.    She  said  that,  to  date,  the  division  has:                                                               
narrowed  down double-checks  with the  new senior  investigators                                                               
for all  the division's programs; reduced  the licensing workload                                                               
for this program; closed 22 cases  so now only 39 cases are open;                                                               
and double-checked  every 60  days or so  that there  is adequate                                                               
documentation in the  division's case file.  She  noted the audit                                                               
did not  find that investigations  were performed poorly  or that                                                               
the board  wasn't doing  its job.   She  advised the  audit found                                                               
that  division staff  did not  document lapses  when things  were                                                               
over  with   the  troopers   or  with   the  Office   of  Special                                                               
Prosecutions.   The division has  taken that very  seriously, she                                                               
added, because it  is a poor reflection on the  division when the                                                               
audit isn't clean.                                                                                                              
                                                                                                                                
1:51:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  stated that  the audit's concerns  are about                                                               
investigations as well as oversight  and monitoring of the cases.                                                               
He  noted that  currently DCBPL  supervises the  cases.   He read                                                               
aloud  from  AS   [08.01.050(a)(19)],  administrative  duties  of                                                               
department, which  states, "provide inspection,  enforcement, and                                                               
investigative  services to  the  boards and  for the  occupations                                                               
listed  in  AS 08.01.010  regarding  all  licenses issued  by  or                                                             
through the department".  He  said the statutes are very specific                                                               
on  who investigates  and who  oversees those  investigations and                                                               
opined  that the  governor's Administrative  Order  is really  an                                                               
Executive Order  because it changes  statutes.  Given  this order                                                               
to put all  investigations under the Department of  Law, he asked                                                               
who  is  now  responsible  for the  oversight,  supervision,  and                                                               
monitoring of those investigations.                                                                                             
                                                                                                                                
MS. CHAMBERS responded  that the task force would  work out these                                                               
questions prior to executing the  Administrative Order.  She said                                                               
she has taken note of Representative Tuck's statements.                                                                         
                                                                                                                                
1:54:01 PM                                                                                                                    
                                                                                                                                
[CO-CHAIR TARR opened public testimony.]                                                                                        
                                                                                                                                
1:54:37 PM                                                                                                                    
                                                                                                                                
KURT WHITEHEAD,  Master Guide-Outfitter, testified he  has been a                                                               
guide in  Alaska since  1995 and has  worked for  good outfitters                                                               
and bad outfitters.   He stressed the importance of  the Big Game                                                               
Commercial  Services  Board.   He  explained  that  an  applicant                                                               
applying for a registered guide  license is tested before a panel                                                               
of  master  guides  and/or registered  guides  and  oral  testing                                                               
reveals the  applicant's competence.   He urged the  committee to                                                               
reauthorize  the  board because  it  provides  oversight and  the                                                               
necessary oral testing.  Without  the board, he said, there would                                                               
be  no more  oral  testing and  an applicant  would  only take  a                                                               
multiple-choice test.                                                                                                           
                                                                                                                                
1:57:08 PM                                                                                                                    
                                                                                                                                
WAYNE  KUBAT,  Master  Guide-Outfitter,  Vice  President,  Alaska                                                               
Professional Hunters Association (APHA),  testified that the APHA                                                               
represents  Alaska's important  and historic  guide industry  and                                                               
has been  in existence  for nearly  50 years.   He said  the APHA                                                               
supports  state's  rights and  is  working  to maintain  Alaska's                                                               
right to  manage game species in  accordance with state law.   He                                                               
stated he is  very familiar with CSSHB 43(FIN) and  that there is                                                               
misleading information circulating about  the Big Game Commercial                                                               
Services Board (BGCSB).  He said  the guide industry pays its own                                                               
way  and is  net positive  for the  state.   He pointed  out that                                                               
guided non-resident  effort is less  than 3 percent of  the total                                                               
big game hunting effort, and  in 2015 accounted for $55.2 million                                                               
new dollars and  with multipliers accounted for  $87.2 million in                                                               
total  economic activity,  with a  lot of  it occurring  in rural                                                               
areas.    He  advised  that guide  numbers  are  decreasing,  not                                                               
increasing, which was mentioned in the audit.                                                                                   
                                                                                                                                
MR. KUBAT addressed  the issue of complaints about  the board not                                                               
taking action in certain cases.   He related that at the meetings                                                               
he  has attended  the board's  binder  shows the  actions it  has                                                               
taken, and while it may not be  all cases, the board is putting a                                                               
dent in  them.   He said  the guide industry  needs a  voice that                                                               
knows  the truth  and can  represent guides  fairly, and  the Big                                                               
Game Commercial Services Board is  that voice.  He further stated                                                               
that  the  board is  an  important  piece  of the  puzzle  toward                                                               
maintaining  the  long-term health  and  viability  of the  guide                                                               
industry.  He urged the passage of CSSB 43(FIN).                                                                                
                                                                                                                                
1:59:35 PM                                                                                                                    
                                                                                                                                
MARK  RICHARDS, Executive  Director, Resident  Hunters of  Alaska                                                               
(RHAK),  testified he  is representing  RHAK's  2,000 members  in                                                               
asking  the   committee  to   reject  the   [proposed]  five-year                                                               
extension  of  the Big  Game  Commercial  Services Board  and  to                                                               
instead extend  it for only  two years.   He noted the  board has                                                               
been audited  every three years  since its reinstatement  in 2005                                                               
and  every audit  has  outlined the  same  problem regarding  the                                                               
ability to  investigate cases  in a timely  manner along  with an                                                               
ongoing backlog  of cases, which doesn't  provide confidence that                                                               
things will  change.  He  opined that a shorter  extension period                                                               
would give the board incentive to resolve its issues.                                                                           
                                                                                                                                
MR. RICHARDS stated the other body  amended the bill, in part, in                                                               
response to RHAK's  complaints about guides continuing  to hold a                                                               
guide license  after numerous violations.   The amended  bill, he                                                               
continued, would change parts of the  Title 8 statutes to make it                                                               
somewhat  easier for  the  board  to revoke  or  suspend a  guide                                                               
license and RHAK agrees with those  changes.  He said there might                                                               
be parts of the Title 8 statute  the committee is unaware of.  He                                                               
maintained the guide  industry has been very  successful over the                                                               
decades in  monopolizing anything  to do  with making  money from                                                               
hunters and  that this is  how "outfitter" got tacked  onto guide                                                               
and now a guide is known  as guide-outfitter.  He again urged the                                                               
committee to amend the bill to a two-year extension.                                                                            
                                                                                                                                
2:02:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  observed that  RHAK's 4/25/19 letter  in the                                                               
committee packet states that nothing  has changed in terms of the                                                               
caseload  and that  the process  has  not been  streamlined.   He                                                               
inquired whether  RHAK has suggestions  on how to  streamline the                                                               
process.  He recalled Ms.  Curtis stating there are problems with                                                               
being able to investigate and adequately monitor the cases.                                                                     
                                                                                                                                
MR. RICHARDS answered  that only one investigator  is attached to                                                               
this  board and  one  investigator alone  cannot  handle all  the                                                               
cases.   He said the  board does not  have money to  hire another                                                               
investigator and opined that the  way the board resolved its debt                                                               
issue  is  problematic because  it  moved  to consent  agreements                                                               
rather than  taking guides to administrative  court hearings that                                                               
are costly.   So  now, he continued,  guides with  violations are                                                               
basically  given a  slap  on the  wrist,  a minimal  probationary                                                               
period, and are allowed to  continue to hold their guide license.                                                               
It is a Catch-22 here, he  advised, in that trying to resolve the                                                               
investigative issues and the caseloads  has resulted in something                                                               
that is allowing guides to continue guiding with violations.                                                                    
                                                                                                                                
2:04:37 PM                                                                                                                    
                                                                                                                                
NATHAN TURNER, Trapper,  Registered Guide-Outfitter, testified he                                                               
works primarily  as a trapper,  has been  a hunting guide  for 22                                                               
years, a registered  guide for 19 of those years,  and is serving                                                               
his ninth year  on the Board of  Game.  He stated  he is speaking                                                               
today as a hunting guide.   He said he supports extending the Big                                                               
Game Commercial  Services for a full  six years and that  he also                                                               
supports the [bill's proposed  changes] to master guide-outfitter                                                               
qualifications.                                                                                                                 
                                                                                                                                
MR. TURNER said the board  has clearly acknowledged the financial                                                               
problems and investigative backlog and  that it continues to work                                                               
diligently on  the areas  that it can  through board  actions and                                                               
authority.   But, he added,  as has been  presented a lot  of the                                                               
issues are  beyond the board.   He  stated the board  takes these                                                               
issues very  seriously.  He  related that  for most of  the years                                                               
the board  has been operating again,  he has sat in  the meetings                                                               
and  the  subcommittee meetings  and  participated  in the  guide                                                               
testing and has  been impressed with the  sincerity of individual                                                               
board members and the tone and  tenure of the meetings.  He urged                                                               
that,  regardless of  the  length of  extension  that is  chosen,                                                               
consideration be given at the end  of the extension to remove the                                                               
sunset  provision.   He said  the  administrative problems  being                                                               
faced today  are nothing  compared to what  would happen  if this                                                               
board was to  sunset, as was evidenced when it  was sunset before                                                               
and the problems in the field led to the board's re-creation.                                                                   
                                                                                                                                
MR. TURNER  stated he supports  the [proposed] changes  to master                                                               
guide-outfitter  qualification.   He said  he has  been qualified                                                               
since 2012  but hasn't  submitted an  application because  of his                                                               
belief that the bar is [currently]  so low it doesn't equate with                                                               
his understanding  of what a master  of any trade should  be.  As                                                               
currently  exists,  he  opined,  a   guide  doesn't  need  to  be                                                               
outstanding  in  any  manner;  a  guide simply  needs  to  be  in                                                               
business long enough and will qualify  to be called a master.  He                                                               
said his belief that when  another guide sees the title "master,"                                                               
he/she should be impressed.                                                                                                     
                                                                                                                                
2:08:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  recalled Mr.  Turner's statement of  being a                                                               
guide for 22 years  and a registered guide for 19.   He asked how                                                               
a person becomes an unregistered guide.                                                                                         
                                                                                                                                
MR. TURNER explained he was an  assistant guide first to earn his                                                               
qualification to become a registered guide.                                                                                     
                                                                                                                                
2:08:29 PM                                                                                                                    
                                                                                                                                
VIRGIL  UMPHENOUR, Master  Guide-Outfitter,  testified he  served                                                               
three  terms on  the  Board of  Fisheries  and afterwards  served                                                               
eight years as  chairman of the Fairbanks Fish  and Game Advisory                                                               
Committee.  He  said Alaska is well known  throughout the country                                                               
for  its boards  of fish  and game  and its  Big Game  Commercial                                                               
Services Board.  He maintained  that the other states are jealous                                                               
of Alaska's  system of public  process for how the  state's fish,                                                               
game, and hunting resources are  managed.  Allowing this board to                                                               
sunset would be a slap in the  face to all wild resource users in                                                               
Alaska, he  said.  He pointed  out that Alaska is  much different                                                               
than  other states  in  that regular  individuals  can put  forth                                                               
proposals to change the regulations,  the proposals are published                                                               
through a board  process, and at the board's  meetings the public                                                               
participate  in  the  discussion about  changing  the  regulatory                                                               
process.  Getting rid of it would be going backwards, he said.                                                                  
                                                                                                                                
VIRGIL UMPHENOUR  noted he  is a  master guide-outfitter  and has                                                               
been  guiding for  33  years, his  son is  also  a master  guide-                                                               
outfitter, and  his daughter is  an assistant guide.   Guides pay                                                               
their own  way, he  continued, in that  non-residents pay  a non-                                                               
resident fee  in addition to their  license and this fee  pays 73                                                               
percent of  the Division of  Wildlife Conservation's  budget, and                                                               
sport  fish licenses  pay for  the  majority of  the Division  of                                                               
Sport Fish's budget.                                                                                                            
                                                                                                                                
MR. UMPHENOUR pointed  out the board doesn't have  anything to do                                                               
with the investigation  process.  The investigator  works for the                                                               
department,  he  said,  so  any  problems  are  the  department's                                                               
problem, not the  board's problem.  The board  does not supervise                                                               
the  investigator, he  continued, and  the board  has gotten  the                                                               
investigator to quit so many  frivolous investigations that don't                                                               
amount to anything.                                                                                                             
                                                                                                                                
2:12:25 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR  closed public testimony after  ascertaining no one                                                               
else wished to testify.                                                                                                         
                                                                                                                                
CO-CHAIR TARR announced that CSSB 43(FIN) was held over.                                                                        
                                                                                                                                
           HB 138-NATIONAL RESOURCE WATER DESIGNATION                                                                       
                                                                                                                                
2:13:12 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR  announced that the  final order of  business would                                                               
be  HOUSE BILL  NO. 138,  "An  Act requiring  the designation  of                                                               
state water  as outstanding national  resource water to  occur in                                                               
statute; relating to management  of outstanding national resource                                                               
water  by  the  Department  of  Environmental  Conservation;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
2:13:41 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:13 p.m. to 2:15 p.m.                                                                       
                                                                                                                                
2:15:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHUCK KOPP,  Alaska  State Legislature,  sponsor,                                                               
introduced HB 138.  He testified  the bill would clarify that the                                                               
designation of  Outstanding National Resource Waters,  also known                                                               
as  designated  Tier  3  waters, would  be  accomplished  by  the                                                               
legislature  through statute.   He  said the  Alaska constitution                                                               
places  the responsibility  for  significant land  and water  use                                                               
decisions in the hands of the  legislature.  He read from Article                                                               
VIII  of  the constitution,  Section  7,  Special Purpose  Sites,                                                               
which states:   "The legislature may provide  for the acquisition                                                               
of sites,  objects, and areas  of natural beauty or  of historic,                                                               
cultural,  recreational, or  scientific  value.   It may  reserve                                                               
them from the public domain  and provide for their administration                                                               
and  preservation for  the  use, enjoyment,  and  welfare of  the                                                               
people."   He  also read  from Article  VIII, Section  2, General                                                               
Authority, which states:  "The  legislature shall provide for the                                                               
utilization,  development,   and  conservation  of   all  natural                                                               
resources belonging to the State,  including land and waters, for                                                               
the maximum benefit of its people."                                                                                             
                                                                                                                                
REPRESENTATIVE KOPP  said a good  example of  this constitutional                                                               
mandate  in practice  is the  118 state  legislatively designated                                                               
areas in  Alaska, which  includes refuges,  sanctuaries, critical                                                               
habitat   areas,  special   management  areas,   forests,  parks,                                                               
recreation  areas,   preserves,  public  use   areas,  recreation                                                               
rivers,  and  recreation  mining  areas, which  total  nearly  12                                                               
million acres.   Each of  these areas, he stated,  was designated                                                               
by  legislative  approval,  not   an  agency  executive  approval                                                               
process.   He said  Alaska's voters have  clearly spoken  on what                                                               
they  believe the  ultimate  authority should  be  with land  and                                                               
water  use  designation process.    This  was  seen in  2014,  he                                                               
specified,  when   voters  approved   the  Bristol   Bay  Forever                                                               
Initiative by a margin of  nearly 4:1, which gave the legislature                                                               
the final say in whether to  allow the development of large scale                                                               
mining projects  in the Bristol Bay  Area.  He said  HB 138 would                                                               
simply  continue this  strong precedent  of ensuring  significant                                                               
land  and water  use decisions,  in  this case  Tier 3  waterbody                                                               
designation, resides in the hands of the legislature.                                                                           
                                                                                                                                
REPRESENTATIVE KOPP  stated that  Tier 3 designation  bestows the                                                               
highest  level  of water  quality  protection  under the  federal                                                               
Clean Water Act    such waters are deemed  the highest ecological                                                               
and  recreational  importance.    He related  that  in  1983  the                                                               
Environmental Protection  Agency (EPA)  defined Tier 3  waters to                                                               
be exceptional ecological and  recreational significance and that                                                               
their water quality be maintained  and protected from degradation                                                               
in perpetuity.  He said the  EPA further mandated that each state                                                               
establish a  process for  designating these  Outstanding National                                                               
Resource Waters.   Alaska  doesn't currently  have a  process, he                                                               
continued, and the  EPA has asked the state to  identify a formal                                                               
process  for designating  Outstanding  National Resource  Waters.                                                               
He said this puts the state  at risk of violating the Clean Water                                                               
Act and  opens up the  possibility for  the EPA imposing  its own                                                               
designation  process, which  it has  no  interest in  doing.   He                                                               
related  that   in  a  2018   letter  to  former   Department  of                                                               
Environmental Conservation  (DEC) commissioner Larry  Hartig, the                                                               
EPA wrote it  supports Alaska's efforts to  develop a designation                                                               
process and that it has no interest in doing that for the state.                                                                
                                                                                                                                
REPRESENTATIVE KOPP  stated that  defining a  designation process                                                               
would provide conservationists and  developers alike a measure of                                                               
certainty in  how to go about  this designation.  He  said HB 138                                                               
would solve  this problem by  codifying in statute  a designation                                                               
process that is  consistent with how lands and  waters across the                                                               
state  would  be  designated   for  conservation  by  legislative                                                               
approval  rather than  by department  or agency  decision.   This                                                               
designation  is  an  important  tool  for  protecting  human  and                                                               
environmental  health,  he continued.    He  maintained it  is  a                                                               
significant  policy decision  because  it would  restrict a  wide                                                               
range of activities  on state waterbodies as well  as on adjacent                                                               
lands   that  have   waters  flowing   across  them   into  those                                                               
waterbodies.   He said large-scale resource  development projects                                                               
located near  Tier 3  watersheds would  therefore be  impacted by                                                               
Tier 3 designation  and so would road  and building construction,                                                               
motorboats,   recreational    activities,   seafood   processing,                                                               
municipal  wastewater   discharge,  residential   and  commercial                                                               
septic   systems,  storm   water  discharge,   landfills,  timber                                                               
harvesting, and gravel quarries.   He opined that such widespread                                                               
impacts effectively make  Tier 3 designation a de  facto land use                                                               
decision and  as such the  final decision for Tier  3 designation                                                               
properly resides  in the hands  of the legislature, which  HB 138                                                               
would do.  He further opined  that HB 138 would provide certainty                                                               
for  conservationists and  developers  alike  on the  designation                                                               
process of Outstanding National  Resource Waters.  Representative                                                               
Kopp said the  bill isn't lengthy, it just says  that this should                                                               
be done in statute by the legislature.                                                                                          
                                                                                                                                
2:22:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK remarked that it  is unknown what the statute                                                               
is going to be.   He therefore asked why not come  up with a bill                                                               
that defines the process because, then, "boom, we're done."                                                                     
                                                                                                                                
REPRESENTATIVE KOPP  replied that the  logical outflow of  HB 138                                                               
is that  the administration  would still  have a  duty as  DEC to                                                               
document petitions  brought forward  for Tier 3  designations and                                                               
the  legislature  would know  about  it  when the  administration                                                               
brings forth  a bill  that would  be introduced  by the  House or                                                               
Senate rules committees by request of  the governor.  That is how                                                               
those  are done  now, he  continued, so  the question  would come                                                               
before that body  in a manner in which the  body is accustomed to                                                               
seeing it.                                                                                                                      
                                                                                                                                
REPRESENTATIVE TUCK  offered his understanding that  a process is                                                               
not being  defined, it is just  being said that the  procedure is                                                               
to follow  the bill when  the designation of  a body of  water or                                                               
river is wanted.                                                                                                                
                                                                                                                                
REPRESENTATIVE  KOPP   responded  yes,   file  a  bill   and  get                                                               
legislative approval.                                                                                                           
                                                                                                                                
2:24:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  asked whether  the governor  could already                                                               
do that.   She further asked whether this governor  or a previous                                                               
governor  has done  that with  any  of the  five nominations  for                                                               
[Tier 3 designation].                                                                                                           
                                                                                                                                
REPRESENTATIVE KOPP answered that  the five currently outstanding                                                               
requests may  go as  far back  as Governor  Parnell.   He related                                                               
that  former DEC  commissioner Larry  Hartig  wrote two  separate                                                               
memos,  one to  DEC  and one  to the  legislature,  in which  the                                                               
commissioner   recommended  an   approval  process   where  these                                                               
decisions were  made by  the legislature.   He  said Commissioner                                                               
Hartig  further stated  in  the  memo that  until  a process  was                                                               
established  the commissioner  did not  feel the  state was  in a                                                               
position to  show it was  complying with the federal  Clean Water                                                               
Act as having a way to resolve these Tier 3 designations.                                                                       
                                                                                                                                
REPRESENTATIVE HANNAN  inquired as to why  [DEC] hadn't forwarded                                                               
the nomination  of the Koktuli  [River] [located in  Bristol Bay]                                                               
for Tier 3 designation given it has been pending for 10 years.                                                                  
                                                                                                                                
REPRESENTATIVE  KOPP replied  it  is because  this  bill has  not                                                               
passed  yet.   He  said  Governor Walker  filed  Senate Bill  163                                                               
[Twenty-Ninth Alaska  State Legislature],  but it didn't  pass so                                                               
now he is continuing that.                                                                                                      
                                                                                                                                
REPRESENTATIVE HANNAN  asked how  many states have  a designation                                                               
process and  how many have  it limited to strictly  a legislative                                                               
decision, as opposed  to a hybrid of the Board  of Water making a                                                               
recommendation and then the legislature acting on it.                                                                           
                                                                                                                                
REPRESENTATIVE KOPP deferred  to DEC.  He said there  is a mix of                                                               
statute, board  or commission, or executive  agency decision, but                                                               
he doesn't know how those are broken down.                                                                                      
                                                                                                                                
2:26:48 PM                                                                                                                    
                                                                                                                                
EARL CRAPPS,  Section Manager, Division  of Water,  Department of                                                               
Environmental   Conservation   (DEC),   answered   Representative                                                               
Hannan's  question.   He  said the  division  doesn't have  those                                                               
broken  down, but  does have  a  summary of  the different  state                                                               
processes.    He  explained  that   the  process  itself  is  not                                                               
specified  via  federal  regulation;  it  is  up  to  each  state                                                               
individually to determine that process.   He said each state does                                                               
it differently - some are  legislative, some are through a board,                                                               
and some  are a specific agency  within the state that  makes the                                                               
designation.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  inquired  whether  there  are  any  other                                                               
states  where that  decision is  exclusively legislature  with no                                                               
other board or department process preceding that.                                                                               
                                                                                                                                
MR.  CRAPPS replied  he would  research it  and get  back to  the                                                               
committee with an answer.                                                                                                       
                                                                                                                                
2:28:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  TARR  stated  she  would  be  interested  in  receiving                                                               
documentation from Mr. Crapps.   She noted she has some documents                                                               
regarding some  western states.   For example, she  said, Arizona                                                               
has  processing  criteria and  regulations,  Nevada  is a  little                                                               
different, New  Mexico is  in regulation,  and Oregon  is policy-                                                               
processing   criteria   combined   in   anti-degradation   policy                                                               
regulation.                                                                                                                     
                                                                                                                                
2:28:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  asked what the  EPA considers to  be an                                                               
adequate definition to  meet the Clean Water Act  standards.  She                                                               
further asked whether having it in regulation is enough.                                                                        
                                                                                                                                
MR. CRAPPS  responded that  the EPA  does not  specify.   He said                                                               
[Alaska]  currently  has  in  place  a  policy  that  says  these                                                               
nominations are  to be taken  to the legislature  for designation                                                               
and the  EPA has indicated that  this policy is adequate  to meet                                                               
an interpretation of the Clean Water Act.                                                                                       
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ concluded  Mr.  Crapps  is saying  that                                                               
[the State  of Alaska] already  has something in  regulation that                                                               
meets  the definition  of the  EPA's criteria  to meet  the Clean                                                               
Water Act standards.                                                                                                            
                                                                                                                                
MR. CRAPPS answered correct and  said last year [DEC] promulgated                                                               
air degradation  regulations and  also posted  [the department's]                                                               
policy  for Tier  3, which  indicates that  these nominations  be                                                               
taken to the  legislature.  The EPA, he  continued, has indicated                                                               
that that is acceptable.                                                                                                        
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ asked  whether  there has  ever been  a                                                               
Tier 3 waterway designation in the state of Alaska.                                                                             
                                                                                                                                
MR. CRAPPS replied no, not to this day.                                                                                         
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ offered  her  understanding that  there                                                               
are  currently five  nominations on  the books,  but so  far, the                                                               
administration hasn't  seen fit to  bring any of them  forward to                                                               
the legislature.                                                                                                                
                                                                                                                                
MR. CRAPPS  responded correct; five  are being held and  have not                                                               
been brought forward any further.                                                                                               
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  said it  sounds like the  state already                                                               
has in  place the process  that is  being recommended in  HB 138.                                                               
She  inquired  why  the  sponsor  thinks  this  process  that  is                                                               
currently  in regulation  and that  meets the  EPA's clean  water                                                               
standards should be put in statute.                                                                                             
                                                                                                                                
2:30:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOPP  replied [Tier 3] designation  is a political                                                               
question  because  it is  so  far  reaching  and is  the  highest                                                               
designation of any  water body use.   He said it is  so high that                                                               
the state of  California, which is probably  far more restrictive                                                               
environmentally than  Alaska, has  only applied  it to  two water                                                               
bodies.   He related that  there are none in  Nevada, Washington,                                                               
Idaho, or  Alaska and  offered his  belief that  there is  one in                                                               
Oregon.  This is a higher  standard than drinking water, he said,                                                               
the  reason being  that some  aquatic life  is more  sensitive to                                                               
copper  than are  humans.   Its subsequent  impact affects  large                                                               
adjoining land  areas, he  continued.  He  said the  question is,                                                               
"Do  we  want  these  types  of sweeping  decisions  made  by  an                                                               
administrative agency  or do  we want  to have  these discussions                                                               
before  a   legislative  body   where  we   can  talk   about  it                                                               
collectively and  express our  collective will  if we  think this                                                               
special use designation is what we  want and hear from the people                                                               
rather  than  maybe  get  an  internal  agency  report  on  their                                                               
thoughts  on  the  matter?"   Every  administration  changes,  he                                                               
added, along with its preferences  and wishes and this bill would                                                               
bring this highest-level question before the legislature.                                                                       
                                                                                                                                
2:32:55 PM                                                                                                                    
                                                                                                                                
KEN  TRUITT,  Staff,  Representative  Chuck  Kopp,  Alaska  State                                                               
Legislature, specified that  part of the answer is  the timing of                                                               
the regulations.  He stated  the regulations were done in consort                                                               
with Senate  Bill [163], which  would have  done what HB  138 [is                                                               
proposing] to do, and the  regulations got into effect before the                                                               
bill got passed.  There  is currently an ambiguity, he continued,                                                               
because those regulations  point to the legislature  and there is                                                               
nothing currently  in statute that  says the legislature  will do                                                               
this.   So, he  said, HB  138 would complete  a process  that was                                                               
started  by  DEC in  consort  with  the  legislation of  a  prior                                                               
administration.                                                                                                                 
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  stated that it sounds  like regulations                                                               
are already  in place that put  into effect what is  described in                                                               
HB  138.   So, she  continued, there  may not  be a  problem that                                                               
needs solved,  unless the effort  is to ensure there  wouldn't be                                                               
citizen initiatives that create a  Tier 3 water designation.  She                                                               
asked  whether  the intent  is  to  try  to prevent  a  citizen's                                                               
initiative from creating a Tier 3 water designation.                                                                            
                                                                                                                                
REPRESENTATIVE KOPP replied he is  unsure what the constitutional                                                               
implications are with natural resources.   He said the courts use                                                               
bright line tests for whether a  resource can be done through the                                                               
initiative box  and therefore  he doesn't know  if this  could be                                                               
done through  an initiative.   But,  he continued,  DEC considers                                                               
this designation  to be  so far reaching  that once  a nomination                                                               
for  Outstanding National  Resource  Water is  made it  basically                                                               
goes  around most  of the  tools used  by DEC  to regulate  water                                                               
quality standards  for normal water quality  designations and DEC                                                               
prefers  this  policy  call  be  made by  the  legislature.    He                                                               
deferred to DEC to answer further.                                                                                              
                                                                                                                                
MR. CRAPPS  clarified that  the recently  promulgated regulations                                                               
deal  only with  how Tier  3  water will  be managed  once it  is                                                               
designated.  He explained that what  he spoke to earlier is DEC's                                                               
policy, which is not in regulation.   The policy itself is just a                                                               
department  policy, he  continued,  and it  says the  nominations                                                               
will be submitted to the legislature for designation.                                                                           
                                                                                                                                
2:36:51 PM                                                                                                                    
                                                                                                                                
NILS ANDREASSEN, Executive Director, Alaska Municipal League,                                                                   
testified in support of HB 138.  He spoke as follows:                                                                           
                                                                                                                                
     As   you  know,   municipal   powers,  especially   for                                                                    
     boroughs,    can   include    planning   and    zoning,                                                                    
     transportation,  ports and  harbors,  sewer and  water,                                                                    
     solid  waste management,  road  maintenance, and  flood                                                                    
     protection and  mitigation.  Each of  these relate back                                                                    
     to Tier  3 designation.   The role of  local government                                                                    
     is extensive  as it  relates to  community development,                                                                    
     public  safety, and  public welfare.   Local  decision-                                                                    
     making takes  into account  extensive public  input and                                                                    
     directly  involves  residents  in   a  review  of  that                                                                    
     development's impacts  on lands and waters  within city                                                                    
     or  borough  boundaries.   The  designation  of Tier  3                                                                    
     waters  by an  agency  would impact  local control  and                                                                    
     decision-making,   which    otherwise   would   involve                                                                    
     residents and  locally elected officials in  a dialogue                                                                    
     about the  sustainability of community  development and                                                                    
     locally  determined  approaches  to the  mitigation  of                                                                    
     negative  impacts.   Designation  may adversely  impact                                                                    
     municipal  wastewater treatment  plants, for  instance,                                                                    
     or storm  water permitting.   Alaska's  constitution is                                                                    
     clear   in    assigning   to   the    legislature   the                                                                    
     responsibility  for  the  administration of  the  state                                                                    
     public  domain and,  further,  the  reservation of  the                                                                    
     public domain for  special purposes.  In  our review of                                                                    
     HB 138 we  believe that the legislative role  in Tier 3                                                                    
     designation maintains the  separation of powers between                                                                    
     the executive  and legislative branches,  is consistent                                                                    
     with  constitutional  intent  and,  further,  that  the                                                                    
     legislative process  mirrors that  found locally    the                                                                    
     inclusion of Alaskans in a  process that is overseen by                                                                    
     elected officials.   We commend to  the legislature the                                                                    
     importance of  the role that local  governments have in                                                                    
     this process.  Clearly  the conservation and protection                                                                    
     of Alaska's  waters is a meaningful  discussion for all                                                                    
     Alaskans, just  as important as Alaska's  community and                                                                    
     economic  development.   Clarifying  the  legislature's                                                                    
     role  in  Tier 3  designations  isn't  making a  choice                                                                    
     between  the  two,  but provides  a  platform  for  the                                                                    
     careful negotiation  that must take place  with respect                                                                    
     to both.                                                                                                                   
                                                                                                                                
2:39:51 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR opened public testimony on HB 138.                                                                                
                                                                                                                                
2:40:11 PM                                                                                                                    
                                                                                                                                
KIMBERLY  STRONG,   Tribal  Council  President,   Chilkat  Indian                                                               
Village, testified  in opposition  to HB 138.   She  related that                                                               
her community  is one of three  that are proposing Tier  3 status                                                               
for the  Chilkat River.   She stated  she is concerned  about the                                                               
process being brought  forth because it would  depend on somebody                                                               
else  and the  administration  in office.    She maintained  that                                                               
putting the process  for Tier 3 designation  into the legislative                                                               
body would  result in the  decision process becoming  a political                                                               
battle.  She pointed out that  she would not have enough funds to                                                               
fly to Juneau to testify  in front of legislators [unlike] mining                                                               
companies  or   other  companies  that  want   to  have  resource                                                               
extraction that could irreparably  damage the river that provides                                                               
five species of salmon for the people of the Chilkat Valley.                                                                    
                                                                                                                                
MS. STRONG  stated that  Tier 3 designation  should be  a process                                                               
where environmental experts make the  decision as to whether this                                                               
is needed to protect the waterway.   She related that in the past                                                               
DEC was  asked whether it had  done water quality testing  in the                                                               
Chilkat River  and DEC  said it  had not  because there  were too                                                               
many waterways  in Alaska for  the department  to test.   So, she                                                               
continued,  the Chilkat  River goes  untested for  water quality.                                                               
She reiterated  she would  rather it not  be a  political process                                                               
and instead be a process that DEC decides.                                                                                      
                                                                                                                                
2:43:08 PM                                                                                                                    
                                                                                                                                
JONES  HOTCH,  Jr.,  Vice   President,  Chilkat  Indian  Village,                                                               
testified  in opposition  to HB  138.   He  noted Chilkat  Indian                                                               
Village is  a federally recognized  Indian tribe.  He  urged that                                                               
the bills in the House and Senate  not be passed.  He pointed out                                                               
there would be no appeal process  and therefore DEC should be the                                                               
one that handles the nomination and selection.                                                                                  
                                                                                                                                
2:44:06 PM                                                                                                                    
                                                                                                                                
SHANNON DONAHUE testified in opposition to  HB 138.  She said she                                                               
lives  at  the  mouth  of  the  Chilkat  River,  which  has  been                                                               
nominated  for  Tier  3 protection  because  of  its  exceptional                                                               
ecological  and cultural  significance.   She stated  that people                                                               
and all living things in the  Chilkat Valley depend on this river                                                               
for sustenance.  She said HB  138 would deny Alaskans their right                                                               
to  protect  their  most  valued   waterways  by  implementing  a                                                               
complicated  political   process  for  designation   through  the                                                               
legislature,  making   it  nearly   impossible  to   achieve  the                                                               
protections  that people  have  a  right to  as  Alaskans and  as                                                               
Americans.    Meanwhile,  she  pointed  out,  mines  and  mineral                                                               
exploration companies  go through a simple  permitting process if                                                               
they want to degrade these waters.   She said this makes no sense                                                               
because everyone  in Alaska depends  on the state's  clean, life-                                                               
giving waterways, yet  it is easier to get  permission to pollute                                                               
the waterways than to protect them.                                                                                             
                                                                                                                                
MS.  DONAHUE  stressed  that  Tier  3  designation  should  be  a                                                               
transparent,  reasonable,  nonpolitical  process based  on  clear                                                               
criteria, and  ecological, cultural, or recreational  values, and                                                               
the  will to  protect Alaska's  waterways.   She  urged that  the                                                               
entire review and  designation process remain with the  DEC.  She                                                               
further urged that HB 138 be  killed and the right of Alaskans be                                                               
defended to protect their waters and their homes.                                                                               
                                                                                                                                
2:45:35 PM                                                                                                                    
                                                                                                                                
JILL JACOB  testified in opposition  to HB 138.   She said  it is                                                               
critical the authority  for designating Tier 3  water remain with                                                               
the DEC  and the process  remain an administrative equal  to that                                                               
of permitting  water.  She  stated that it is  astonishing Alaska                                                               
does not yet have a Tier 3  waterbody.  She noted that Lake Tahoe                                                               
in California  is a Tier 3  waterbody and that it  hasn't stopped                                                               
people from  swimming, drinking, or  anything else.   She offered                                                               
her  understanding that  HB 138  would  remove the  option for  a                                                               
public ballot  to designate Tier  3 water and would  also provide                                                               
the  way for  a  governor to  veto a  Tier  3 water  designation.                                                               
Alaska has the  last remaining healthy wild salmon  on the planet                                                               
other than a few  places in Russia, she said, so  there is a need                                                               
to  start  protecting  Alaska's   waterbodies  with  the  highest                                                               
possible  protection.   She  added  that  no amount  of  economic                                                               
development is worth the state's safe drinking water or fish.                                                                   
                                                                                                                                
2:47:16 PM                                                                                                                    
                                                                                                                                
KIP  KERMOIAN testified  in opposition  to HB  138.   He reported                                                               
that at a 3/20/17 meeting in  Juneau, focal groups were formed to                                                               
specifically address the process that  the state of Alaska should                                                               
employ to  nominate and  designate Outstanding  National Resource                                                               
Waters.  He  said the meeting attendees  were two representatives                                                               
for  conservation  organizations,  two  for  commercial  fishing,                                                               
eleven  for government,  sixteen  for industry,  five for  Alaska                                                               
Natives,  two for  the Upper  Lynn Canal  Fish and  Game Advisory                                                               
Committee, and  five undeclared representatives.   Of importance,                                                               
he noted,  is that one  point of consensus  was that none  of the                                                               
focal groups expressed  support for a legislative path  to Tier 3                                                               
designation; the opinion  otherwise was split between  an all DEC                                                               
option or some combination of a DEC and a Tier 3 advisory board.                                                                
                                                                                                                                
MR. KERMOIAN stated that like those  at the workshop, he does not                                                               
support a legislative  option.  He expressed his  opinion that it                                                               
should  be DEC  along with  an advisory  board and  it should  be                                                               
evaluated for a  specific nomination path and  recommended to the                                                               
DEC by this board at least  with stakeholders and a body of other                                                               
people involved.   He said inviting the legislature  to make this                                                               
determination politicizes this  process and it should  be left to                                                               
natural  resources and  scientists,  people of  expertise in  the                                                               
field.   He pointed out  that for Tier  3 these experts  would be                                                               
evaluating   exceptional,   important,  unique,   and   sensitive                                                               
ecological waters.  He added  that the transient political nature                                                               
of how things go would not lend  itself well to this process.  He                                                               
said corporations can  apply for a process to grade  water and HB
138 and SB  51 would eliminate the ability for  residents and the                                                               
public to do the same.                                                                                                          
                                                                                                                                
2:50:10 PM                                                                                                                    
                                                                                                                                
BETSEY BURDETT  testified in opposition  to HB 138.   She offered                                                               
her belief that this process should  stay in the realm of DEC and                                                               
some  kind of  advisory board.   She  noted that  legislators are                                                               
replaced every few years, as is  the governor, and she would like                                                               
to  keep it  on an  administrative level  with experts  that know                                                               
about the environment.  She  disagreed that this designation is a                                                               
land use decision and said it  is about clean rivers.  Given many                                                               
of  these rivers  already have  things  going on,  she added,  it                                                               
isn't like it is being taken off the grid.                                                                                      
                                                                                                                                
2:51:28 PM                                                                                                                    
                                                                                                                                
JAN CONITZ  testified in opposition to  HB 138.  She  stated that                                                               
while the  bill sounds like  a simple change,  it isn't -  it's a                                                               
sweeping change.   She said HB 138 would take  away the rights of                                                               
ordinary Alaskans,  and over time  would result in great  harm to                                                               
Alaska's  mostly pristine  waters  by taking  away  the right  of                                                               
people who know these waters to  take steps to protect them.  She                                                               
pointed  out  that unique  about  Alaska  compared to  all  other                                                               
states, is  the direct  dependence of so  many Alaskans  on clean                                                               
and unspoiled waters.   Those with direct connection  to the land                                                               
and water,  she continued, have  close-up firsthand  knowledge of                                                               
the waterways that need protection  and they know about the risks                                                               
of not taking care of those waters.                                                                                             
                                                                                                                                
MS.  CONITZ  said  all  Alaskans  currently  have  the  right  to                                                               
nominate  waters  critically  important as  Outstanding  National                                                               
Resource Waters.  The designation  protects waters from long-term                                                               
pollution  and  degradation by  simply  not  allowing dumping  of                                                               
waste into them,  she continued, and would  not preclude ordinary                                                               
existing  uses of  the  water.   But, she  stated,  HB 138  would                                                               
remove the right  of ordinary Alaskans to take the  first step to                                                               
protect the water  that they depend on and care  about.  The bill                                                               
would turn  efforts to reasonably  protect clean water over  to a                                                               
political  process, which  would probably  in practice  be nearly                                                               
impossible to  prevail.  She  pointed out the legislature  can at                                                               
this  time  designate  Tier  3  waters  if  it  chooses  to,  but                                                               
evidently it has not, and so there  is no point in passing HB 138                                                               
to give the  legislature more authority.  She  reiterated that HB
138  would take  away the  authority and  the rights  of ordinary                                                               
Alaskans and  would allow further  degradation of  Alaska's clean                                                               
waters.  She urged the bill not be passed.                                                                                      
                                                                                                                                
2:54:31 PM                                                                                                                    
                                                                                                                                
DOUG WOODBY testified in opposition to  HB 138.  He said he began                                                               
working for  the Alaska Department of  Fish and Game in  the mid-                                                               
1970s  and  retired  a  few   years  ago  as  a  chief  fisheries                                                               
scientist.   He noted he  conducted research and  management work                                                               
all around  the state and  is opposed to HB  138 for a  number of                                                               
reasons.  The  primary reason, he continued, is  because it would                                                               
make  the designation  of these  exceptional  waters a  political                                                               
process when  it should  be based  on best  scientific expertise.                                                               
He said that based on the  bill's sponsors, it is clear that many                                                               
are  extractive  industries.   Alaska  currently  has  no  waters                                                               
designated  under this  special  designation, he  stated, and  it                                                               
appears  that HB  138 is  a thinly  veiled attempt  to make  that                                                               
almost impossible, which is why he opposes it.                                                                                  
                                                                                                                                
2:55:51 PM                                                                                                                    
                                                                                                                                
DEANTHA CROCKETT,  Executive Director, Alaska  Miners Association                                                               
(AMA), testified in support of HB 138.  She spoke as follows:                                                                   
                                                                                                                                
     The Clean Water  Act requires all states  to maintain a                                                                    
     process  for Tier  3 water  designation.   This is  for                                                                    
     water   that's   described    as   having   exceptional                                                                    
     recreational or ecological  significance or waters that                                                                    
     are  within   parks  and   refuge,  so   truly  special                                                                    
     scenarios of  water protection above what  the State of                                                                    
     Alaska already does.  Tier  3 waters effectively cannot                                                                    
     have any new  or any expanded activities  that have the                                                                    
     potential to change  the water quality in any  way.  So                                                                    
     this would apply even in  situations where the activity                                                                    
     meets  existing  water   quality  standards  and  fully                                                                    
     protects the fish and the water  and any other uses.  A                                                                    
     designation  would result  in significant  restrictions                                                                    
     on land  and water users and  cause significant adverse                                                                    
     and   social  and   economic   impacts.     Because   a                                                                    
     designation applies to  a Tier 3 tributary or  a Tier 3                                                                    
     water,   it  would   prohibit  development   in  entire                                                                    
     watersheds  comparable to  de factor  wilderness.   And                                                                    
     for  that  reason  we  believe  ...  the  authority  to                                                                    
     designate  should lie  solely  with representatives  of                                                                    
     Alaskans, which is the legislature.                                                                                        
                                                                                                                                
     With  regard  to  the  designations,  they've  got  the                                                                    
     potential   to   become  tools   for   anti-development                                                                    
     interests to block or delay  projects.  It's evident in                                                                    
     the  five  nominations   before  DEC  currently,  which                                                                    
     specify  mining, oil  and gas,  federal land  planning,                                                                    
     and  Alaska  Native   corporation  land  selections  as                                                                    
     threats  to  waterbodies.    But   it's  clear  that  a                                                                    
     designation  goes a  lot farther.   Tier  3 designation                                                                    
     could  impact a  lot  of  other users,  non-development                                                                    
     users that  the sponsor  outlined in  his introduction.                                                                    
     ... That  is why you will  see in your packet  a letter                                                                    
     authored  by 15  diverse organizations  that understand                                                                    
     the impact  of a  Tier 3  designation to  all Alaskans.                                                                    
     And we  believe that given the  significant adverse and                                                                    
     watershed-wide land  and water use impacts  that a Tier                                                                    
     3  water should  be designated  only by  a vote  to the                                                                    
     legislature.       This   is   consistent    with   the                                                                    
     constitution,  the existing  process for  setting aside                                                                    
     areas of state land  from development, and existing DEC                                                                    
     policy.  And  for those reasons we urge  you to support                                                                    
     this bill.                                                                                                                 
                                                                                                                                
2:58:10 PM                                                                                                                    
                                                                                                                                
JESSICA  PLACHTA,  Executive  Director, Lynn  Canal  Conservation                                                               
(LCC),  testified  in  opposition  to  HB  138.    She  said  her                                                               
organization's 300  active members are  speaking with her  as she                                                               
testifies  opposing HB  138  and SB  51.   She  related that  LCC                                                               
supports  the Village  of Klukwan,  which  nominated the  Chilkat                                                               
River for Tier 3 protection.  She continued:                                                                                    
                                                                                                                                
     Clean water  is not a  partisan issue.  Anyone  who has                                                                    
     ever  fed a  child or  caught a  fish knows  that clean                                                                    
     water is a  basic human right.  Alaska  is blessed with                                                                    
     abundant clean  water and despite its  small population                                                                    
     Alaska  is  also  the biggest  water  polluter  in  the                                                                    
     country.   It can do  better than  that.  The  state of                                                                    
     Alaska has been out of  compliance with the Clean Water                                                                    
     Act for  over 20 years.   But [Alaskans]  are demanding                                                                    
     the  right  to protect  our  clean  waters and  healthy                                                                    
     salmon runs before  rampant industrialization makes our                                                                    
     way of life history.   Support for subsistence is built                                                                    
     into the  state constitution;  it should not  be easier                                                                    
     to pollute  public waters in  the state of  Alaska than                                                                    
     it is to  protect them.  Opponents  of protection argue                                                                    
     that  Tier 3  designation  would be  bad for  business.                                                                    
     Tell that  to Florida, which  has 41 designated  Tier 3                                                                    
     waterways and  a robust  economy.   We are  counting on                                                                    
     you  legislators to  resist corporate  pressure and  do                                                                    
     the right  thing.  Let  communities protect  the waters                                                                    
     they  rely  on  using   sound  science,  not  corporate                                                                    
     pressure  and not  politics for  the  yardstick.   It's                                                                    
     that  simple.    There  is an  alternate  Tier  3  bill                                                                    
     waiting  in the  wings,  one that  makes  it easier  to                                                                    
     protect the  water we all  rely on for our  health, our                                                                    
     wealth,  and  our future  generations.    Wait for  it.                                                                    
     Please oppose  HB 138 and SB  51.  Three hundred  of us                                                                    
     here  in Haines  ask you  to join  us and  oppose these                                                                    
     destructive backward bills.   And please let us protect                                                                    
     the Chilkat River.                                                                                                         
                                                                                                                                
3:00:36 PM                                                                                                                    
                                                                                                                                
LOUIE FLORA, Director, Government Affairs, The Alaska Center                                                                    
(TAC), testified in opposition to HB 138.  He stated:                                                                           
                                                                                                                                
     We  believe  the  state's top  cop  for  water  quality                                                                    
     regulations,  DEC,  has  the  ability,  expertise,  and                                                                    
     clear  legal authority  to  establish  a science  based                                                                    
     nomination  process for  high value  waters for  Tier 3                                                                    
     water as  required under the  federal Clean  Water Act.                                                                    
     We believe administration of Tier  3 for waters of high                                                                    
     ecological or recreational value  can be rendered under                                                                    
     the  existing anti-degradation  policy incorporated  in                                                                    
     the existing  DEC water quality standards  program. ...                                                                    
     DEC  does  not  need   additional  legal  authority  to                                                                    
     designate  Tier 3  waters;  it just  needs  to adopt  a                                                                    
     process for doing  that. Moving legislative designation                                                                    
     of Tier 3  waters will result in  an entirely political                                                                    
     process  for  any  discussion   on  the  science  based                                                                    
     merits, and the Tier  3 designation will be steamrolled                                                                    
     by politics and  money.  And DEC has  the water quality                                                                    
     expertise  and the  ability to  regulate water  quality                                                                    
     [and]  should  be the  entity  to  make the  protective                                                                    
     determinations.                                                                                                            
                                                                                                                                
MR.  FLORA  addressed  the  argument that  HB  138  is  necessary                                                               
because Tier  3 designations  are too  big of  a policy  call for                                                               
DEC.   He  said this  to be  a strange  argument in  that EPA  is                                                               
currently  moving ahead  with certification  of  an Alaska  water                                                               
quality  regulation  promulgated  by  DEC  in  2006  that  allows                                                               
pollution-mixing zones  in salmon spawning  areas statewide.   He                                                               
pointed  out   that  this  2006   regulation  has   far  reaching                                                               
implications  for  salmon  habitat  and for  salmon  user  groups                                                               
statewide  and  was  carried  out   administratively.    Yet,  he                                                               
continued, with  HB 138  it is  being said  that to  protect very                                                               
specific  and   geographically  limited  waters   of  exceptional                                                               
ecological value  the burden is  too great for  an administrative                                                               
process.   He  said the  argument  that the  agencies should  not                                                               
independently  make  determinations  to  protect  certain  waters                                                               
ignores  the statute  that  allows  citizens, organizations,  and                                                               
state  agencies   to  make  in-stream  flow   or  water  quantity                                                               
reservations through  an administrative process overseen  by DNR.                                                               
These reservations, he noted, are  made quite often by the Alaska                                                               
Department of Fish and Game to  protect fish habitat and it's all                                                               
without legislated confirmation or approval.                                                                                    
                                                                                                                                
MR. FLORA  stated HB 138 is  unnecessary and should not  be moved                                                               
from committee.  He said  DEC should, within its clear authority,                                                               
create a  regulation that satisfies  the federal Clean  Water Act                                                               
requirement that states  have a process for  citizens to nominate                                                               
specific  high  value  waters   for  protection  from  additional                                                               
degradation.                                                                                                                    
                                                                                                                                
3:03:32 PM                                                                                                                    
                                                                                                                                
GUY ARCHIBALD  testified in opposition to  HB 138.  He  stated he                                                               
is  representing himself  but works  as staff  scientist for  the                                                               
Southeast Alaska Conservation  Council (SEACC).  He  said some of                                                               
the  talking points  in the  sponsor's statement  are imperfectly                                                               
informed,  such  as  the  statement  that  the  State  of  Alaska                                                               
currently has  no formal process  for designating  a Tier 3.   He                                                               
drew attention  to the [7/26/18]  letter in the  committee packet                                                               
from  the EPA  to Mr.  Andrew Sayers-Fay  [Director, Division  of                                                               
Water, DEC] and  noted the letter mentions that  EPA is approving                                                               
the Tier 1 and Tier 2 because  DEC still has in place the interim                                                               
antidegradation guidance  that outlines  three different  ways to                                                               
designate Tier  3.  One  of those ways,  he said, is  through the                                                               
triennial  review process  where any  resident of  the state  can                                                               
nominate a Tier 3 and DEC is supposed to move that along.                                                                       
                                                                                                                                
MR. ARCHIBALD  said nobody argues  that the legislature  does not                                                               
have  the  authority to  designate  a  Tier  3.   He  stated  the                                                               
legislature can  act on  those at  any time  and has  always been                                                               
able to do  that.  So, he  continued, if this bill is  not a bill                                                               
to form  a designation process,  then it  must be asked,  What is                                                               
it?  He said it's clear that HB  138 is designed to take a public                                                               
process out  of it so  that the public  process does not  have an                                                               
administrative process  or even  an appeal process  judicially to                                                               
form  a Tier  3.   In regard  to statements  that protecting  the                                                               
water  is so  far  reaching and  has so  many  other effects,  he                                                               
pointed out  that contaminating  water has effects  as well  - on                                                               
other  landowners, communities,  and people's  ability to  make a                                                               
living through the  fishing industry.  He maintained it  is not a                                                               
land  use decision  because landowners  adjacent  to the  state's                                                               
public waters have no inherent right to pollute those waters.                                                                   
                                                                                                                                
CO-CHAIR  TARR inquired  about the  three ways  [that DEC  has to                                                               
designate a Tier 3].                                                                                                            
                                                                                                                                
MR. ARCHIBALD  replied that  the Alaska  Department of  Law (DOL)                                                               
has done  an opinion  on this, but  has not made  it public.   He                                                               
related  that the  Department of  Law told  him it  was attorney-                                                               
client privilege.  He suggested the committee ask for it.                                                                       
                                                                                                                                
3:06:36 PM                                                                                                                    
                                                                                                                                
SARAH   DAVIDSON,  Program   Manager,   Inside  Passage   Waters,                                                               
Southeast  Alaska  Conservation  Council  (SEACC),  testified  in                                                               
opposition to HB 138.  She  said her position with SEACC provides                                                               
her the opportunity to travel  throughout Southeast Alaska, speak                                                               
to  communities about  water  challenges  and opportunities,  and                                                               
listen to their concerns, needs, and interests.  She continued:                                                                 
                                                                                                                                
     Of the many concerns I've  heard, those relating to the                                                                    
     future of wild  Alaskan salmon stocks have  come up the                                                                    
     most, a  concern that  I imagine is  shared by  many in                                                                    
     this  room.    As  stressors  in  the  ocean  ecosystem                                                                    
     increase,  our  streams  and rivers  become  even  more                                                                    
     critical to the survival  of salmon and the communities                                                                    
     that rely on  them.  Currently most  Alaskan waters are                                                                    
     clean enough to catch  fish and eat without significant                                                                    
     health  hazards.   This is  one  of the  few places  on                                                                    
     earth where this is the  case.  That alone makes Alaska                                                                    
     unique and  fuels our two  largest economic  drivers in                                                                    
     this region   fishing and  tourism.  We should be doing                                                                    
     everything we  can to protect that  special quality and                                                                    
     the waterways that make that  possible.  Instead HB 138                                                                    
     makes  it even  more difficult  than it  already is  to                                                                    
     protect our  clean waters  and leads  us down  the same                                                                    
     path from which  other states in our  country are still                                                                    
     struggling  to  recover  after  decades  of  industrial                                                                    
     pollution.  It  should be no more  difficult to protect                                                                    
     Alaskan waters  that it is  to pollute them.   Not only                                                                    
     does  HB 138  make this  process political  rather than                                                                    
     scientific  by removing  authority  from  DEC, it  also                                                                    
     removes  the opportunity  of Tier  3  designation by  a                                                                    
     public  initiative.    The same  agency  that  has  the                                                                    
     scientific expertise to implement  a Tier 3 designation                                                                    
     should  also  have  the  authority  to  designate  them                                                                    
     through  an administrative  and science  based process.                                                                    
     This  is not  my perspective  alone.   It is  shared by                                                                    
     over 150 people  who signed our petition  calling for a                                                                    
     Tier  3 designation  process equally  as administrative                                                                    
     and streamlined  as the permit  process to  degrade our                                                                    
     waters.   Any short-term gains  made by the  passing of                                                                    
     HB 138  will be  undermined by the  long-term detriment                                                                    
     to  our   clean  water,  our  healthy   fish,  and  our                                                                    
     resilient communities.   HB 138 hurts all of  us. ... I                                                                    
     call on  each representative on this  committee to have                                                                    
     the will and the courage  to prioritize clean water for                                                                    
     those yet to come by defeating this bill.                                                                                  
                                                                                                                                
3:09:20 PM                                                                                                                    
                                                                                                                                
HEATHER EVOY testified  in opposition to HB 138.   She stated she                                                               
is Tsimshian  from the Eagle  Clan.  She  noted she works  as the                                                               
Indigenous Engagement Lead for  the Southeast Alaska Conservation                                                               
Council (SEACC),  but is speaking  today on behalf of  herself as                                                               
an Alaska Native  whose ancestors have been  here for 10,000-plus                                                               
years.   She said  that for almost  10 years DEC  has sat  on the                                                               
five Tier  3 nominations, all of  which have come from  an Alaska                                                               
Native tribe,  not corporations.   In regard  to the  argument by                                                               
proponents of  a legislative-only Tier  3 process that Tier  3 is                                                               
just a  tool for  special interest groups,  she pointed  out that                                                               
tribes are  not special interest  groups any more than  any other                                                               
government entities.                                                                                                            
                                                                                                                                
3:10:53 PM                                                                                                                    
                                                                                                                                
PHILLIP MOSER testified in opposition to  HB 138.  He stated that                                                               
passing the  bill would be a  blow to the voice  and wellbeing of                                                               
citizens  like him.   He  said he  finds it  outrageous that  the                                                               
proponents  of  smaller government  and  less  regulation have  a                                                               
talking  point that  only applies  to industry  and capital,  but                                                               
when citizens  have a tool  to advocate for themselves  and their                                                               
health and the  waters on which they rely, proposals  are made to                                                               
add more  and more bureaucracy  to stop them.   He stated  DEC is                                                               
set up  precisely to  work through  Tier 3  water issues  and can                                                               
respond to  community advocacy well; shunting  Tier 3 designation                                                               
to  the  state  lawmaking  process   would  result  in  losing  a                                                               
straightforward  fact based  investigative  process to  political                                                               
stalling.                                                                                                                       
                                                                                                                                
MR. MOSER  asked why business  can apply to  the DEC with  a six-                                                               
page  application to  engage in  long-term pollution  of Alaska's                                                               
best waters while  its own citizens trying to  protect those same                                                               
waters upon which they rely and  live on are considered a threat.                                                               
Regardless  of whether  the bill  passes, he  said, the  evidence                                                               
already says  Alaska's waters have many  stressors and everything                                                               
possible  needs to  be  done  to uphold  Alaska's  waters as  the                                                               
cleanest and best  waters for its own citizens.   He noted Tier 3                                                               
designations do not  apply to existing uses of  those waters, and                                                               
offered his belief that the argument  that it could be onerous to                                                               
people if this legislation isn't passed is much overstated.                                                                     
                                                                                                                                
3:12:38 PM                                                                                                                    
                                                                                                                                
[HB 138 was held over.]                                                                                                         
                                                                                                                                
3:13:00 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 3:13 p.m.                                                                 
                                                                                                                                

Document Name Date/Time Subjects
SB 43 Sponsor Statement.pdf HRES 4/29/2019 1:00:00 PM
SB 43
CSSB 43 (SFIN) - Sectional Summary.pdf HRES 4/29/2019 1:00:00 PM
SB 43
SB 43, Version A.PDF HRES 4/29/2019 1:00:00 PM
HRES 5/3/2019 1:00:00 PM
SB 43
CSSB 43, Version B.pdf HRES 4/29/2019 1:00:00 PM
SB 43
SB 43 Work Draft v. M - Explanation.pdf HRES 4/29/2019 1:00:00 PM
HRES 5/3/2019 1:00:00 PM
SB 43
SB 43 Letters of Support.pdf HRES 4/29/2019 1:00:00 PM
HRES 5/3/2019 1:00:00 PM
SB 43
SB 43 Letters of Opposition.pdf HRES 4/29/2019 1:00:00 PM
SB 43
SB 43 DCPL Letter .pdf HRES 4/29/2019 1:00:00 PM
HRES 5/3/2019 1:00:00 PM
SB 43
SB 43 Bunch Testimony .pdf HRES 4/29/2019 1:00:00 PM
SB 43
SB 43 Additional Testimony Huttunen.pdf HRES 4/29/2019 1:00:00 PM
SB 43
SB 43 BGCSB Letter of Support 4.03.19.pdf HRES 4/29/2019 1:00:00 PM
SB 43
SB 43 Big Game Commercial Services Board Sunset Review Audit.pdf HRES 4/29/2019 1:00:00 PM
SB 43
HB138 Sponsor Statement version U 4.22.2019.pdf HRES 4/29/2019 1:00:00 PM
HRES 5/3/2019 1:00:00 PM
HRES 2/10/2020 1:00:00 PM
HRES 2/17/2020 1:00:00 PM
HB 138
HB138 version A 4.22.2019.pdf HRES 4/29/2019 1:00:00 PM
HRES 5/3/2019 1:00:00 PM
HRES 2/10/2020 1:00:00 PM
HRES 2/14/2020 1:00:00 PM
HRES 2/17/2020 1:00:00 PM
HB 138
HB138 Supporting Material DNR Fact Sheet Legislatively Designated Areas 4.22.2019.pdf HRES 4/29/2019 1:00:00 PM
HRES 5/3/2019 1:00:00 PM
HRES 2/10/2020 1:00:00 PM
HB138 Supporting Material DEC Tier 3 Water Designation FAQ 4.22.2019.pdf HRES 4/29/2019 1:00:00 PM
HRES 5/3/2019 1:00:00 PM
HRES 2/10/2020 1:00:00 PM
HRES 2/14/2020 1:00:00 PM
HRES 2/17/2020 1:00:00 PM
HRES 2/24/2020 1:00:00 PM
HRES 3/9/2020 1:00:00 PM
HRES 3/11/2020 1:00:00 PM
HB 138
HB138 Supporting Material DEC Tier 3 response 4.22.2019.pdf HRES 4/29/2019 1:00:00 PM
HRES 5/3/2019 1:00:00 PM
HRES 2/10/2020 1:00:00 PM
HRES 2/14/2020 1:00:00 PM
HRES 2/17/2020 1:00:00 PM
HB 138
HB138 Supporting Material DEC Final Tier 3 Guidance 4.22.2019.pdf HRES 4/29/2019 1:00:00 PM
HRES 2/10/2020 1:00:00 PM
HRES 2/14/2020 1:00:00 PM
HRES 2/17/2020 1:00:00 PM
HRES 2/24/2020 1:00:00 PM
HRES 3/9/2020 1:00:00 PM
HRES 3/11/2020 1:00:00 PM
HB 138
HB138 Supporting Material Commissioner Hartig Letter to Senate 4.22.2019.PDF HRES 4/29/2019 1:00:00 PM
HRES 5/3/2019 1:00:00 PM
HRES 2/10/2020 1:00:00 PM
HRES 2/14/2020 1:00:00 PM
HRES 2/17/2020 1:00:00 PM
HRES 2/24/2020 1:00:00 PM
HB 138
HB138 40 CFR Part 131 4.22.2019.pdf HRES 4/29/2019 1:00:00 PM
HRES 5/3/2019 1:00:00 PM
HRES 2/10/2020 1:00:00 PM
HRES 2/17/2020 1:00:00 PM
HB 138
HB138 18 AAC 70.016 4.22.2019.pdf HRES 4/29/2019 1:00:00 PM
HRES 5/3/2019 1:00:00 PM
HRES 2/10/2020 1:00:00 PM
HRES 2/14/2020 1:00:00 PM
HRES 2/17/2020 1:00:00 PM
HB 138
HB136 Fiscal Note 4.26.19.pdf HRES 4/29/2019 1:00:00 PM
HB 136
HR138 Supporting Document EPA Response to DEC 7.26.18.pdf HRES 4/29/2019 1:00:00 PM
HR 138
HB138 Supporting Document - Chilkat Indian Village Letter of Opposition 4.26.19.pdf HRES 4/29/2019 1:00:00 PM
HRES 2/10/2020 1:00:00 PM
HRES 2/14/2020 1:00:00 PM
HRES 2/17/2020 1:00:00 PM
HB 138
HB138 Supporting Document - DEC P&P re Tier 3 Nomination 11.21.18.pdf HRES 4/29/2019 1:00:00 PM
HRES 5/3/2019 1:00:00 PM
HRES 2/10/2020 1:00:00 PM
HRES 2/14/2020 1:00:00 PM
HRES 2/17/2020 1:00:00 PM
HB 138
HB138 Supporting Document EPA Response to DEC 7.26.18.pdf HRES 4/29/2019 1:00:00 PM
HR 138
HB138 Fiscal Note 4.26.19.pdf HRES 4/29/2019 1:00:00 PM
HRES 5/3/2019 1:00:00 PM
HRES 2/10/2020 1:00:00 PM
HB 138
HR138 Supporting Document EPA Response to DEC 7.26.18.pdf HRES 4/29/2019 1:00:00 PM
HR 138
SB43 Supporting Document - RHAK Letter House Resources 4.25.19.pdf HRES 4/29/2019 1:00:00 PM
HRES 5/3/2019 1:00:00 PM
SB 43
HB138 Coalition Letter of Support 4.28.19.pdf HRES 4/29/2019 1:00:00 PM
HRES 2/10/2020 1:00:00 PM
HRES 2/14/2020 1:00:00 PM
HRES 2/17/2020 1:00:00 PM
HB 138
HB138 Letters of Opposition 4.29.19.pdf HRES 4/29/2019 1:00:00 PM
HRES 2/10/2020 1:00:00 PM
HB138 Additional Letters of Opposition.pdf HRES 4/29/2019 1:00:00 PM
HRES 2/10/2020 1:00:00 PM
HRES 2/14/2020 1:00:00 PM
HRES 2/17/2020 1:00:00 PM
HB 138