Legislature(1993 - 1994)

01/29/1993 08:00 AM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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               HOUSE RESOURCES STANDING COMMITTEE                              
                        January 29, 1993                                       
                            8:00 a.m.                                          
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Bill Williams, Chairman                                       
  Representative Bill Hudson, Vice-Chairman                                    
  Representative Con Bunde                                                     
  Representative Pat Carney                                                    
  Representative John Davies                                                   
  Representative Joe Green                                                     
  Representative Jeannette James                                               
  Representative Eldon Mulder                                                  
  Representative David Finkelstein                                             
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  None                                                                         
                                                                               
  OTHER LEGISLATORS PRESENT                                                    
                                                                               
  Representative Cliff Davidson                                                
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  EO 83:    Merging the State Geographic Board and the                         
            Historic Sites Advisory Committee into the Alaska                  
            Historical Commission in the Department of Natural                 
            Resources.                                                         
                                                                               
            MOVED OUT OF COMMITTEE WITH A DO PASS                              
            RECOMMENDATION                                                     
                                                                               
  EO 85:    Moving the bonding program that serves as security                 
            for the collection of wages and payments for raw                   
            fish from the Department of Labor to the                           
            Department of Revenue.                                             
                                                                               
            MOVED OUT OF COMMITTEE WITH A DO PASS                              
            RECOMMENDATION                                                     
                                                                               
  EO 86:    Transferring the functions and duties of the                       
            division of fisheries rehabilitation, enhancement                  
            and development (FRED) to the Department of Fish                   
            and Game.                                                          
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Kristie Leaf                                                                 
  Office of the Governor                                                       
  P.O. Box 110001                                                              
  Juneau, Alaska  99811                                                        
  Phone:  465-3500                                                             
  Position Statement:  Summarized the intent of EO 83                          
                                                                               
  Leo Land                                                                     
  Box 122                                                                      
  Haines, Alaska  99827                                                        
  Phone:  766-2466                                                             
  Position Statement: Expressed concern over the disposition                   
                      of Native Alaskan artifacts                              
                                                                               
  Donald G. Study, Acting Director                                             
  Division of Labor Standards and Safety                                       
  Alaska Department of Labor                                                   
  P.O. Box 20630                                                               
  Juneau, Alaska  99802-0630                                                   
  Phone:  465-4855                                                             
  Position Statement: Explained the transfer of the bonding                    
                      program                                                  
                                                                               
  Rod Mourant, Assistant Commissioner                                          
  Alaska Department of Revenue                                                 
  P.O.Box 110400                                                               
  Juneau, Alaska  99811-0400                                                   
  Phone:  465-2300                                                             
  Position Statement:  Testified on EO 85                                      
                                                                               
  Geron Bruce, Special Assistant II                                            
  Alaska Department of Fish & Game                                             
  P.O. Box 25526                                                               
  Juneau, Alaska  99802                                                        
  Phone:  465-4100                                                             
  Position Statement:  Testified on EO 86                                      
                                                                               
  Jeff Koenings, Director                                                      
  Division of Fisheries Rehabilitation, Enhancement and                        
  Development                                                                  
  Alaska Department of Fish & Game                                             
  P.O. Box 25526                                                               
  Juneau, Alaska  99802                                                        
  Phone:  465-4100                                                             
  Position Statement: Explained the Division's oversight                       
                      functions                                                
                                                                               
  Representative Cliff Davidson                                                
  State Capitol, Room 400                                                      
  Juneau, Alaska  99801-1182                                                   
  Phone:  465-2487                                                             
  Position Statement: Asked questions related to EO 86                         
                                                                               
  John McMullen                                                                
  Prince William Sound Aquaculture                                             
  P.O. Box 1110                                                                
  Cordova, Alaska  99574                                                       
  Phone:  424-4334                                                             
  Position Statement: Testified on the role of the Division of                 
                      Fisheries Rehabilitation, Enhancement                    
                      Development                                              
                                                                               
  Bob Clasby, Acting Director                                                  
  Division of Commercial Fisheries                                             
  Alaska Department of Fish & Game                                             
  P.O. Box 25526                                                               
  Juneau, Alaska  99802-5526                                                   
  Phone:  465-4210                                                             
  Position Statement:  Testified on EO 86                                      
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  ORDER:  EO 83                                                                
  SHORT TITLE:  MERGER OF STATE GEOGRAPHIC BOARD AND HISTORIC                  
  SITES ADVISORY COMMITTEE                                                     
  SPONSOR(S):  GOVERNOR'S OFFICE                                               
  TITLE:  Merging the State Geographic Board and the Historic                  
  Sites Advisory Committee into the Alaska Historical                          
  Commission in the Department of Natural Resources.                           
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/11/93                (H)  READ THE FIRST TIME/REFERRAL(S)                 
  01/11/93                (H)  STATE AFFAIRS, RESOURCES,                       
                               FINANCE                                         
  01/19/93                (H)  STA AT 08:00 AM CAPITOL 102                     
  01/29/93                (H)  RES AT 08:00 AM CAPITOL 124                     
                                                                               
                                                                               
  ORDER:  EO 85                                                                
  SHORT TITLE:  MOVING THE BONDING PROGRAM RE RAW FISH FROM                    
  DOL TO DOR                                                                   
  SPONSOR(S):  GOVERNOR'S OFFICE                                               
  TITLE:  Moving the bonding program that serves as security                   
  for the collection of wages and payments for raw fish from                   
  the Department of Labor to the Department of Revenue.                        
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/11/93                (H)  READ THE FIRST TIME/REFERRAL(S)                 
  01/11/93                (H)  STATE AFFAIRS, RESOURCES,                       
                               FINANCE                                         
  01/19/93                (H)  STA AT 08:00 AM CAPITOL 102                     
  01/29/93                (H)  RES AT 08:00 AM CAPITOL 124                     
                                                                               
                                                                               
  ORDER:  EO 86                                                                
  SHORT TITLE:  TRANSFER OF FUNCTIONS FROM FRED TO ADF&G                       
  SPONSOR(S):  GOVERNOR'S OFFICE                                               
  TITLE:  Transferring the functions and duties of the                         
  division of fisheries, rehabilitation, enhancement and                       
  development (FRED) to the Department of Fish and Game.                       
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/11/93                (H)  READ THE FIRST TIME/REFERRAL(S)                 
  01/11/93                (H)  STATE AFFAIRS, RESOURCES,                       
                               FINANCE                                         
  01/19/93                (H)  STA AT 08:00 AM CAPITOL 102                     
  01/29/93                (H)  RES AT 08:00 AM CAPITOL 124                     
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-10, SIDE A                                                           
  Number 000                                                                   
                                                                               
  CHAIRMAN BILL WILLIAMS called the meeting of the House                       
  Resources Committee to order at 8:07 a.m.  Members present                   
  at the call to order were Representatives Williams, Hudson,                  
  Bunde, Carney, Davies, Green and James.                                      
                                                                               
  CHAIRMAN WILLIAMS announced the committee would address                      
  three executive orders, and referred to the procedure for                    
  adopting or rejecting executive orders, specified under                      
  Article III, Section 23 of the Alaska Constitution.  He                      
  noted legislative action had to be taken by the sixtieth day                 
  of the session, or the executive orders automatically become                 
  law.  The chairman acknowledged Representative David                         
  Finkelstein joined the meeting at 8:10 a.m.                                  
  EO 83:  MERGER OF STATE GEOGRAPHIC BOARD AND HISTORIC SITES                  
  ADVISORY COMMITTEE                                                           
                                                                               
  CHAIRMAN WILLIAMS announced further that the committee would                 
  first consider EO 83.  He then introduced the first witness.                 
                                                                               
  KRISTIE LEAF, representing the GOVERNOR'S OFFICE, addressed                  
  the committee with a summary of the intent of EO 83.  She                    
  said the consolidation was recommended by a task force and                   
  the same duties now met in the separate entities would be                    
  maintained.  She said the new consolidated commission would                  
  have a total membership of nine individuals, reduced from                    
  the current 21 among the three separate entities.  Ms. Leaf                  
  cited increased accessibility and lower administrative costs                 
  as justification for the consolidation.                                      
                                                                               
  REPRESENTATIVE JOE GREEN asked Ms. Leaf why a zero fiscal                    
  note had been submitted if any cost savings were                             
  anticipated.                                                                 
                                                                               
  MS. LEAF responded that the FY 94 budget did not reflect the                 
  savings that might be realized, and no figures were                          
  available at this time.                                                      
                                                                               
  Number 164                                                                   
                                                                               
  REPRESENTATIVE BILL HUDSON referred to the memorandum in                     
  members' packets from the Division of Legal Services                         
  (1/18/93, Lauterbach).  He asked Ms. Leaf about the possible                 
  legal question discussed in paragraph two of the memorandum,                 
  regarding the removal of partially exempt employees into                     
  classified service by executive order.                                       
                                                                               
  MS. LEAF told the committee that aspect of EO 83 had not                     
  been looked at by the Governor's Office.                                     
                                                                               
  REPRESENTATIVE HUDSON suggested the next committee of                        
  referral address that question.                                              
                                                                               
  Number 194                                                                   
                                                                               
  REPRESENTATIVE JOHN DAVIES MOVED that the committee records                  
  reflect the committee's concern over the potential legal                     
  problem in paragraph two of the Lauterbach memo, and                         
  cautioned that precedent not be set.                                         
                                                                               
  Number 218                                                                   
                                                                               
  REPRESENTATIVE CON BUNDE suggested the committee draft a                     
  letter reflecting that recommendation.                                       
                                                                               
  Number 234                                                                   
                                                                               
  CHAIRMAN WILLIAMS asked members if there were any objections                 
  to the motion that the committee attach a letter of intent                   
  with the executive order noting the committee's concern                      
  about partially exempt state employees' status, as                           
  identified in the 1/18/93 Lauterbach memo.  Hearing no                       
  objection, the MOTION PASSED.                                                
                                                                               
  Number 257                                                                   
                                                                               
  LEO LAND of Haines offered testimony on EO 83.  He expressed                 
  concern over the disposition of Native Alaskan artifacts as                  
  a result of the changes called for in EO 83.                                 
                                                                               
  Number 330                                                                   
                                                                               
  REPRESENTATIVE JEANNETTE JAMES explained that only the                       
  structure of the Historical Commission would change, not the                 
  policies of the committees it would encompass.                               
                                                                               
  Number 351                                                                   
                                                                               
  REPRESENTATIVE BUNDE pointed out lines seven and eight on                    
  page two of EO 83, which referred to the exclusive right of                  
  the state to conduct field archaeology on state-owned or                     
  controlled land.  In response to Mr. Land's concerns, he                     
  noted: "Nothing in AS 41.35.010 - 41.35.240 diminishes the                   
  cultural rights and responsibilities of persons of                           
  aboriginal descent or infringes upon their right of                          
  possession and use of those resources that may be considered                 
  of historic, prehistoric, or archaeological value."                          
                                                                               
  Number 372                                                                   
                                                                               
  REPRESENTATIVE HUDSON made a MOTION to move EO 83 from                       
  committee with the letter of intent regarding the Lauterbach                 
  memo and adopting the zero fiscal notes.  He asked for                       
  unanimous consent.                                                           
                                                                               
  EO 85:  MOVING THE BONDING PROGRAM RE RAW FISH FROM DOL TO                   
  DOR                                                                          
                                                                               
  Number 385                                                                   
                                                                               
  CHAIRMAN WILLIAMS asked if there were any objections to the                  
  motion.  Hearing none, the MOTION PASSED.  The chairman                      
  announced the committee would next hear testimony on EO 85,                  
  which related to the transfer from the Department of Labor                   
  (DOL) to the Department of Revenue (DOR), of a bonding                       
  program for the collection of wages and payment for raw                      
  fish.                                                                        
                                                                               
  Number 394                                                                   
                                                                               
  DONALD G. STUDY, ACTING DIRECTOR, DIVISION OF LABOR                          
  STANDARDS AND SAFETY, DOL, explained the transfer of the                     
  bonding program was to make the program's administration                     
  more expedient, as the DOR already administered related                      
  programs.  He said an automated system that handled the                      
  program would also be transferred to the DOR.  He explained                  
  the zero fiscal note did not reflect a savings of $55,000                    
  previously deleted from the DOL's FY 94 budget submission.                   
                                                                               
  Number 434                                                                   
                                                                               
  REPRESENTATIVE BUNDE commented the memorandum from Legal                     
  Services regarding EO 85 showed substantial changes in the                   
  fish bonding program, and he hoped the committee would                       
  address that question.                                                       
                                                                               
  Number 444                                                                   
                                                                               
  REPRESENTATIVE HUDSON referred to the same memo, dated                       
  January 19, 1993 from George Utermohle to the House                          
  Resources Committee.  He mentioned a section regarding                       
  provisions for adopting regulations on the fish bonding                      
  program within the DOR.  He felt executive orders were not                   
  the best way to effect changes such as this one, and that a                  
  bill allowing for provisions for substantive changes might                   
  be more effective.                                                           
                                                                               
  Number 465                                                                   
                                                                               
  REPRESENTATIVE BUNDE expressed concern that it would not be                  
  wise to leave questions unanswered, allowing for future                      
  changes in regulations that were not intended.                               
                                                                               
  REPRESENTATIVE JAMES offered her concern that provisions for                 
  filing evidence of compliance were not clearly specified in                  
  EO 85.  She felt that aspect of the bonding program should                   
  also have specifically been transferred to the DOR.                          
                                                                               
  REPRESENTATIVE JOE GREEN agreed with Representative Hudson's                 
  view and suggested the committee could do as they did with                   
  EO 83, and attach a letter of intent expressing the concern                  
  about evidence of compliance regulations.                                    
                                                                               
  REPRESENTATIVE BUNDE added it was important to provide for                   
  consistency in the state bureaucracy.  He agreed with the                    
  proposal before the committee to include a letter of intent                  
  with EO 85.                                                                  
                                                                               
  Number 508                                                                   
                                                                               
  ROD MOURANT, ASSISTANT COMMISSIONER, DOR, testified that the                 
  issue of transferring the fish bonding program had been                      
  studied in the past, with the conclusion that such a move                    
  would make good administrative sense.  He said the DOR                       
  presently required evidence of compliance in fish bonding                    
  for the purposes of potential tax liability.  Under EO 85,                   
  he explained, the responsibility for the verification of a                   
  labor bond would be transferred to the DOR.   He said it was                 
  the intent of the DOR that regulations be adopted requiring                  
  a certificate of evidence of bond to be presented prior to a                 
  license being issued.                                                        
                                                                               
  REPRESENTATIVE JAMES supported the transfer and the                          
  simplification of the process, but expressed concern that                    
  procedural matters not be overlooked.  She agreed concerns                   
  should be expressed in writing.                                              
                                                                               
  REPRESENTATIVE HUDSON discussed the powers of the DOR to                     
  implement regulations necessary to implement the transfer of                 
  the fish bonding program.  Noting the Commissioner of the                    
  DOR had the authority to adopt such regulation, he said that                 
  was sufficient provision.                                                    
                                                                               
  REPRESENTATIVE DAVIES concurred with Representative Hudson.                  
  He did not see any substantive change in the duties of the                   
  respective commissioners.                                                    
                                                                               
  Number 565                                                                   
                                                                               
  REPRESENTATIVE HUDSON asked Mr. Mourant whether there would                  
  be any transfer of functions or positions from the DOL to                    
  the DOR when the bonding program was transferred.                            
                                                                               
  MR. MOURANT responded that there would not be any dedicated                  
  positions or funding transferred with the program.  Within                   
  the DOR, he said the bonding program would be located in the                 
  Income and Excise Audit Division.  He added it was the                       
  Department's intent to protect fisheries employees and would                 
  adopt the necessary regulations to accomplish that.                          
                                                                               
  Number 585                                                                   
                                                                               
  REPRESENTATIVE HUDSON made a MOTION to pass EO 85 from the                   
  committee.                                                                   
                                                                               
  CHAIRMAN WILLIAMS asked if there were any objections to the                  
  motion.                                                                      
                                                                               
  REPRESENTATIVE DAVIES offered a friendly AMENDMENT to the                    
  motion that the committee attach a letter of intent to EO 85                 
  regarding the committee's concern about the bonding                          
  procedure and compliance verification.                                       
                                                                               
  REPRESENTATIVE HUDSON ACCEPTED the friendly AMENDMENT and                    
  revised his motion that EO 85 be passed from committee with                  
  individual recommendations and including the letter of                       
  intent for the next committee of referral.                                   
                                                                               
  EO 86:  TRANSFER OF FUNCTIONS FROM FRED DIVISION TO ADF&G                    
                                                                               
  CHAIRMAN WILLIAMS suggested the committee add to the motion                  
  the acceptance of the fiscal note.  He asked for objections                  
  to the motion, and hearing none, the MOTION PASSED.  He then                 
  presented EO 86 for the committee's attention.                               
                                                                               
  TAPE 93-10, Side B                                                           
  Number 000                                                                   
                                                                               
  GERON BRUCE, SPECIAL ASSISTANT II, ALASKA DEPARTMENT OF FISH                 
  AND GAME (ADF&G), explained the intention of EO 86 was to                    
  place the functions of the Division of Fish Rehabilitation,                  
  Enhancement and Development (FRED) into the ADF&G as a                       
  whole, eliminating the FRED division.  He described the                      
  history of the FRED division, and its successful efforts in                  
  developing salmon fisheries.  He discussed the growing role                  
  of non-profit hatcheries in the success of fisheries                         
  development in Alaska.  The action proposed in EO 86, he                     
  said, was in response to a need to streamline government.                    
  He added that a savings of $300,000 was already realized in                  
  the ADF&G's FY 93 budget, and any further savings had not                    
  been identified.                                                             
                                                                               
  MR. BRUCE added the core functions of the FRED division                      
  would continue, particularly support of the private sector,                  
  limnology, and disease control, among others.                                
                                                                               
  Number 106                                                                   
                                                                               
  REPRESENTATIVE DAVIES asked Mr. Bruce what efficiencies                      
  would result from implementation of EO 86.                                   
                                                                               
  MR. BRUCE cited some administrative savings, and noted that                  
  some programs were presently operated partially by separate                  
  divisions and integration of such programs would be more                     
  efficient.  In response to Rep. Davies' question regarding                   
  the zero fiscal note and where savings would be realized,                    
  Mr. Bruce responded that initial savings of $300,000 had                     
  already been taken in FY 93.                                                 
                                                                               
  MR. BRUCE said additional savings beyond that initial amount                 
  had not yet been identified.  Many functions of the FRED                     
  division and the Commercial Fisheries Division would be                      
  maintained, he added.                                                        
                                                                               
  Number 149                                                                   
                                                                               
  REPRESENTATIVE DAVIES asked Mr. Bruce to identify                            
  overlapping functions which EO 86 promised to eliminate.                     
                                                                               
  MR. BRUCE answered that, as an example, both the FRED                        
  division and the Commercial Fisheries Division had area                      
  management biologists specializing in different areas but                    
  stationed in the same location.  He explained that in such                   
  situations, it might be possible to combine those functions                  
  in one individual with possibly an assistant, which could                    
  result in some savings.                                                      
                                                                               
  Number 174                                                                   
                                                                               
  REPRESENTATIVE DAVIES asked whether the role of the                          
  Department in offering technical assistance and oversight to                 
  the private sector hatcheries would be diminished or remain                  
  essentially the same.                                                        
                                                                               
  MR. BRUCE said that question would best be answered by Mr.                   
  Jeff Koenings.                                                               
                                                                               
  Number 190                                                                   
                                                                               
  JEFF KOENINGS, DIRECTOR of the FRED division, explained the                  
  oversight functions for conducting the state's private non-                  
  profit aquaculture programs.  He reported the FRED division                  
  had made efforts to strengthen those areas of its services.                  
  He reiterated it was best to combine functions that                          
  overlapped.  The strengthening of protection for both wild                   
  and hatchery stocks was a priority of the department that                    
  would not be diminished by EO 86, he said.                                   
                                                                               
  Number 245                                                                   
                                                                               
  REPRESENTATIVE BUNDE expressed surprise that a whole                         
  division of state government could be eliminated without                     
  saving money.  He asked about the status of state employees                  
  working in privatized state hatcheries, and whether they                     
  would, as a result of EO 86, remain state employees.                         
                                                                               
  MR. KOENINGS responded that four facilities were to be                       
  transferred to the private sector, and state employees at                    
  those facilities might either be employed by the                             
  associations taking over the facilities, or be involved in                   
  the state employment bumping pools.  He said the answers to                  
  those questions were not known yet and possible alternatives                 
  were being explored.  He expressed hope that the private                     
  sector might pick up some of the displaced employees                         
  affected by the changes.                                                     
                                                                               
  REPRESENTATIVE BUNDE suggested few state employees would be                  
  willing to give up the state's benefits package to pursue                    
  employment in the private sector.  He also voiced concerns                   
  that his constituents would be interested in the                             
  preservation of sport fishing enhancement.  He said he was                   
  doubtful that the private sector would pick up that role.                    
                                                                               
  Number 280                                                                   
                                                                               
  MR. KOENINGS answered the concerns raised by Rep. Bunde by                   
  saying that in the FY 94 budget, sport fish producing                        
  facilities located in Anchorage would be transferred to the                  
  Division of Sport Fish.  Those facilities, he said, were                     
  user-pay facilities through federal and ADF&G funding                        
  sources and did not rely on general fund money for                           
  operation.                                                                   
                                                                               
  (Chairman Williams announced for the record that                             
  Representative Eldon Mulder joined the meeting at 9:05 a.m.)                 
                                                                               
                                                                               
  Number 304                                                                   
                                                                               
  REPRESENTATIVE GREEN commented that although he favored the                  
  consolidation, he had concerns about the actual savings that                 
  would result.  In particular, he asked Mr. Koenings whether                  
  the $300,000 saved in the FY 93 budget might be requested                    
  again in the FY 94 budget.                                                   
                                                                               
  MR. KOENINGS responded that the department did not                           
  anticipate the budget creeping up again, and that the money                  
  already saved included reductions in staff.                                  
                                                                               
  Number 333                                                                   
                                                                               
  REPRESENTATIVE JAMES supported the consolidation, and added                  
  the role of fisheries rehabilitation was a very important                    
  one for the state.  She was concerned that the emphasis on                   
  rehabilitation and enhancement would be diminished with the                  
  elimination of the FRED division.  She questioned the                        
  effectiveness of non-profit facilities to fill that role.                    
                                                                               
  Number 350                                                                   
                                                                               
  MR. KOENINGS told the committee that the Department would                    
  work in partnership with the non-profit hatcheries to                        
  develop fish populations, and said the state's abilities to                  
  perform its share had been diluted with reductions in                        
  funding.  He stressed the planning process and management                    
  plans in place had given the state a good working                            
  relationship with the private sector.                                        
                                                                               
  Number 372                                                                   
                                                                               
  REPRESENTATIVE JAMES reiterated more savings ought to be                     
  realized by the elimination of an entire division than what                  
  had already been taken from the budget.                                      
                                                                               
  Number 378                                                                   
                                                                               
  MR. KOENINGS responded that it had been planned to take that                 
  $300,000 cut in anticipation of this consolidation of                        
  functions, and that the adjustments being made now should                    
  not call for further cuts.  He added, though, that new                       
  problems arose that had to be addressed by the Department,                   
  and there were areas where expansion might be foreseen.  He                  
  told the committee that by next year there might be more                     
  specific numbers available on future savings or funding                      
  needs.                                                                       
                                                                               
  Number 408                                                                   
                                                                               
  REPRESENTATIVE HUDSON remarked on the diminished                             
  responsibilities in meeting the functions of the FRED                        
  division, and asked Mr. Koenings to clarify whether those                    
  functions would be absorbed into the Commercial Fisheries                    
  Division.                                                                    
                                                                               
  MR. KOENINGS responded that that was a correct appraisal.                    
  He added the process was ongoing and would come to fruition                  
  on July 1, 1993.  He explained that a combined division                      
  would result with the critical functions of both former                      
  divisions intact.                                                            
                                                                               
  Number 415                                                                   
                                                                               
  REPRESENTATIVE HUDSON requested the ADF&G provide more                       
  specific details about which positions would be eliminated                   
  and how others would be assigned in the new scheme of the                    
  department.                                                                  
  MR. KOENINGS explained that an interim structure was set up                  
  where interim deputy directors would handle the                              
  responsibilities and functions of both divisions under the                   
  new structure.  A core planning group, headed by himself,                    
  would seek advice from people throughout the department and                  
  affected divisions.  He said there would be both vertical                    
  and horizontal integration of responsibilities to reach the                  
  ultimate new structure, which would be recommended to the                    
  ADF&G's Commissioner on July 1, 1993.                                        
                                                                               
  Number 450                                                                   
                                                                               
  REPRESENTATIVE BUNDE asked whether the elimination of the                    
  division would accomplish anything other than getting rid of                 
  stationery that says the FRED division.  He asked Mr.                        
  Koenings what his role as Director of the FRED division                      
  would be, after July 1, 1993.                                                
                                                                               
  Number 460                                                                   
                                                                               
  MR. KOENINGS replied that there was a possibility that his                   
  own job could be eliminated.                                                 
                                                                               
  Number 474                                                                   
                                                                               
  REPRESENTATIVE CLIFF DAVIDSON asked about the number of                      
  employees affected who were state employees in name only,                    
  but who actually worked for and were paid by the private,                    
  non-profit associations.  He pointed to the division's                       
  involvement in bottom-fish.                                                  
                                                                               
  Number 484                                                                   
                                                                               
  MR. KOENINGS explained that in the new division, there would                 
  be commercial fisheries management and development                           
  functions, with an ability to effect management decisions in                 
  the bottom-fish area.  The savings that might accrue to the                  
  department would allow the new division to move in that                      
  direction.  Currently, there were no resources to meet the                   
  needs in that area, he explained.                                            
                                                                               
  MR. KOENINGS further explained that in the FY 94 budget, the                 
  program receipts' authority had been eliminated, so the                      
  Department could not take in funds from aquaculture                          
  associations.  Employees at those facilities, he said, would                 
  be operated by the aquaculture associations and not through                  
  the transfer of money to the state.                                          
                                                                               
  Number 510                                                                   
                                                                               
  REPRESENTATIVE DAVIDSON asked what the state would gain from                 
  this arrangement other than just cutting state employees out                 
  of successful hatcheries and thereby undermining the state's                 
  ability to have a close relationship with those hatcheries.                  
                                                                               
  Number 520                                                                   
                                                                               
  MR. KOENINGS believed the department's oversight                             
  responsibility was carried out whether a facility was                        
  operated by a regional or non-profit association.  He said                   
  what was good for preservation of a state facility was good                  
  for the non-profit association as well.  He did not foresee                  
  the quality of programs being diminished by the proposed                     
  plan, and indicated the non-profits might be able to operate                 
  the facilities cheaper than the state.                                       
  REPRESENTATIVE HUDSON questioned the reasons for getting rid                 
  of the FRED division's language, and suggested the                           
  possibility of shrinking and reorganizing that division.  He                 
  also expressed concern about keeping technical support for                   
  hatcheries.  He said he would like to see a plan that was                    
  more "fleshed-out."  He was also interested in the long-                     
  range plans of the Department.                                               
                                                                               
  Number 570                                                                   
                                                                               
  MR. BRUCE said the commissioner was trying to proceed as                     
  Representative Hudson suggested.                                             
                                                                               
  TAPE 93-11, SIDE A                                                           
  Number 000                                                                   
                                                                               
  MR. BRUCE explained the Commissioner's flexibility was                       
  limited as long as the FRED division's duties were                           
  established by statute.  Executive Order 86, he said,                        
  provided that flexibility.  He also said the commissioner                    
  had been aware of the public and legislative interest in the                 
  continuation of the programs located within the FRED                         
  division.  After soliciting public opinion the commissioner                  
  would come back to the legislature with his plan, and                        
  essential services would be preserved, he said.                              
                                                                               
  Numbder 047                                                                  
                                                                               
  REPRESENTATIVE JAMES questioned the underlying motivation                    
  for the action.  She said both net results and cost-savings                  
  were critical, and the emphasis on the FRED division's                       
  services seemed to be getting lost without resulting in any                  
  real savings, which should be the bottom-line in such a                      
  measure.                                                                     
                                                                               
  Number 088                                                                   
                                                                               
  REPRESENTATIVE GREEN agreed the committee needed a clearer                   
  idea of the department's plans before taking action on EO                    
  86.                                                                          
                                                                               
  MR. KOENINGS presented a chart showing the interim structure                 
  that would be in place until July 1, 1993.                                   
                                                                               
  Number 103                                                                   
                                                                               
  REPRESENTATIVE PAT CARNEY was not convinced the                              
  consolidation was a good idea, but said further information                  
  could change his mind.                                                       
                                                                               
  REPRESENTATIVE BUNDE inquired into the need to combine the                   
  FRED division's functions if a savings had already been                      
  realized, especially if the newly reorganized department's                   
  first action was to hire new employees.                                      
                                                                               
  Number 171                                                                   
                                                                               
  JOHN McMULLEN of PRINCE WILLIAM SOUND AQUACULTURE in                         
  Cordova, testified to the role of the FRED division.  He                     
  contrasted the low catches of the 1960's and 1970's with                     
  much larger catches in recent years.  He cited favorable                     
  environmental factors as partly responsible for the growth                   
  in catches.  Regarding the implementation of changes                         
  proposed in EO 86, Mr. McMullen suggested a scenario where                   
  certain functions and services of the FRED division might be                 
  maintained for user agencies. He recommended the FRED                        
  division be realigned in a way that preserved the division's                 
  role as an advocate for salmon enhancement.                                  
                                                                               
  Number 294                                                                   
                                                                               
  REPRESENTATIVE BUNDE asked Mr. McMullen if his move from                     
  state employment to the private enterprise was an example of                 
  a smooth transition that could be followed by other division                 
  employees affected by the change in division status.                         
                                                                               
  MR. McMULLEN responded that he had done other things after                   
  leaving the FRED division and did not go directly to Prince                  
  William Sound Aquaculture Corporation.                                       
                                                                               
  Number 302                                                                   
                                                                               
  REPRESENTATIVE DAVIES asked Mr. McMullen's position on EO                    
  86.                                                                          
                                                                               
  MR. McMULLEN did not argue for the preservation of the                       
  entire FRED division, but for those functions which he                       
  described as being very important to the success of non-                     
  profit hatcheries.                                                           
                                                                               
  Number 379                                                                   
                                                                               
  REPRESENTATIVE HUDSON commented that although the FRED                       
  division contributed to building up fish stocks in Alaska,                   
  history had shown what could happen.  He said the division                   
  served a critical function and he wanted more specific                       
  information before voting on EO 86.                                          
                                                                               
  Number 342                                                                   
                                                                               
  REPRESENTATIVE JAMES had a question regarding the cyclical                   
  nature of fish populations and the drastic changes in a                      
  twenty-year period.                                                          
                                                                               
  Number 355                                                                   
                                                                               
  MR. McMULLEN referred to the resurgence in fish populations                  
  in 1979, and cited factors like water temperatures, plankton                 
  levels and other environmental influences.                                   
                                                                               
  REPRESENTATIVE JAMES commented there was an even more acute                  
  need now for good fisheries management as we approached a                    
  down cycle in fish populations.                                              
                                                                               
  MR. McMULLEN agreed and added it was important to diversify                  
  the salmon industry.                                                         
                                                                               
  Number 392                                                                   
                                                                               
  BOB CLASBY testified on behalf of the DIVISION OF COMMERCIAL                 
  FISHERIES.  He had not heard objections within the division                  
  to the proposed consolidation.  He emphasized the cuts taken                 
  in the FY 93 budget were the first step in the department's                  
  integration.                                                                 
                                                                               
  REPRESENTATIVE BUNDE requested the committee also hear from                  
  the Division of Sport Fish before taking action on EO 86.                    
                                                                               
  ANNOUNCEMENTS                                                                
                                                                               
  Number 430                                                                   
  CHAIRMAN WILLIAMS announced EO 86 would be held over until                   
  an unspecified date in early February, and the committee                     
  would not meet on Monday, February 1, 1993, but members of                   
  the committee were invited to attend a meeting of the                        
  Special Committee on Fisheries at 8:30 a.m. in Room 17.  He                  
  also announced the committee would hold an overview on the                   
  Mental Health Lands issue on February 3, 1993, at 8 a.m.                     
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  Hearing no other business, Chairman Williams adjourned the                   
  meeting at 9:50 a.m.                                                         

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