Legislature(1993 - 1994)
03/02/1994 03:50 PM Senate RES
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE RESOURCES COMMITTEE
March 2, 1994
3:50 P.M.
MEMBERS PRESENT
Senator Mike Miller, Chairman
Senator Loren Leman, Vice Chairman
Senator Steve Frank
Senator Drue Pearce
Senator Al Adams
Senator Dave Donley
Senator Fred Zharoff
MEMBERS ABSENT
None
COMMITTEE CALENDAR
SENATE BILL NO. 316
"An Act relating to commercial fishing penalties."
SENATE BILL NO. 310
"An Act relating to the management and sale of state timber;
relating to the classification of state land that would preclude
harvesting of timber or would designate harvesting of timber as an
incompatible use; relating to the administration of forest land,
proposals for state forest, and the determination of sustained
yield; and providing for an effective date."
PREVIOUS ACTION
SB 316 - See Resources minutes dated 3/2/94.
SB 310 - See Resources minutes dated 3/2/94.
WITNESS REGISTER
Senator Rick Halford
State Capital
Juneau, Ak. 99801-1182
POSITION STATEMENT: Sponsor of SB 316.
C. E. Swackhammer, Deputy Commissioner
Department of Public Safety
P.O. Box 111200
Juneau, Ak. 99811-1200
POSITION STATEMENT: Supported SB 316.
Colonel Bill Valentine, Director
Division of Fish and Wildlife Protection
Department of Fish and Game
5700 Tudor Rd.
Anchorage, Ak. 99507-1225
POSITION STATEMENT: Supported SB 316.
David Ingram, Hearing Officer
Commercial Fisheries Entry Commission
8800 Glacier Hwy., Suite 109
Juneau, Ak. 99801-8079
POSITION STATEMENT: Supported SB 316.
Jerry Luckhaupt, Legislative Affairs
130 Seward St., Suite 402
Juneau, Ak. 99801-
POSITION STATEMENT: Commented on SB 310.
Richard Bishop
1555 Gus's Grind
Fairbanks, Ak. 99709
POSITION STATEMENT: Did not support SB 310 as written.
Bill Allen
Fairbanks Chamber of Commerce
P.O. Box 73765
Fairbanks, Ak. 99707
POSITION STATEMENT: Supported SB 310.
Michael Walleri
Tanana Chiefs Conference
122 First Ave
Fairbanks, Ak. 99207
POSITION STATEMENT: Opposed SB 310.
Chris Maisch
Tanana Chiefs Conference
122 First Ave.
Fairbanks, Ak. 99207
POSITION STATEMENT: Opposed SB 310.
Judy Warwick
3200 Riverview Dr.
Fairbanks, Ak. 99701
POSITION STATEMENT: Opposed SB 310.
Jan Dawe
Ak. Boreal Forest
P.O. Box 82003
Fairbanks, Ak. 99708
POSITION STATEMENT: Opposed SB 310.
Celia Hunter
1819 Musk Ox Trail
Fairbanks, Ak. 99709
POSITION STATEMENT: Opposed SB 310.
Mary Shields
P.O. Box 80961
Fairbanks, Ak. 99708
POSITION STATEMENT: Opposed SB 310.
Ginny Hill Wood
1819 Musk Ox Trail
Fairbanks, Ak. 99709
POSITION STATEMENT: Opposed SB 310
Ron Ricketts
515 7th Ave., Suite 320
Fairbanks, Ak. 99701
POSITION STATEMENT: Supported SB 310.
Sean McGuire
351 Cloudberry
Fairbanks, Ak. 99709
POSITION STATEMENT: Opposed SB 310.
Dale Haggstrom
2349 Stevens Ave.
Fairbanks, Ak. 99709
POSITION STATEMENT: Opposed SB 310.
Eva Saulitis
325 Yana
Fairbanks, Ak. 99709
POSITION STATEMENT: Opposed SB 310.
Molly Hudson
P.O. Box 83467
Fairbanks, Ak 99708
POSITION STATEMENT: Opposed SB 310
Sylvia Ward
Northern Alaska Environmental Center
218 Driveway Rd.
Fairbanks, Ak. 99701
POSITION STATEMENT: Opposed SB 310.
ACTION NARRATIVE
TAPE 94-15, SIDE A
Number 001
CHAIRMAN MILLER called the Resources Committee meeting to order at
3:50 p.m. and announced SB 316 (FISHING VIOLATIONS:FINES/BURDEN OF F
PROOF) to be up for consideration.
SENATOR HALFORD, sponsor, said it changes penalties for commercial
fishing violations and misdemeanors. It doubles the fine for
violations, changes the provisions to make them stronger on action
on misdemeanors. In general, he explained, misdemeanors require
intent and violations don't. It is important to note that the
number of enforcement actions is going up, but the amount in fines
is going down. He said he lays a lot of the blame at the
Department of Law's prosecution efforts, citing where in many
cases, especially in Bristol Bay, a prosecutor lowered the
recommended penalty (which the defendant agreed to) to the court,
because he thought the plea agreements were too harsh.
SENATOR ADAMS moved to adopt the CS to SB 316. There were no
objections and it was so ordered.
SENATOR ADAMS said he had a problem with the percentage of fines,
because he comes from a fishing district that does not make huge
profits as in Bristol Bay. He hoped they could look at an
annualized percentage of profit versus a fine.
His other concern was in Section 2, where it says "a person who
without any culpable mental state violates Alaska Statute 16.05.440
- 16.05.690." He said that covered a lot of sections.
SENATOR ADAMS also had problems with the $6,000 penalty for
forgetting to renew a license. SENATOR HALFORD responded that this
legislation is increasing the maximum fine which hasn't been the
problem. It isn't his intention to penalize someone who hasn't
managed to handle the paper work. The court of appeals reserves
the maximum fine for the worst kinds of offenders.
SENATOR ADAMS said he agreed with those points, but he has problems
with Section 2 and designating Alaska Statutes. SENATOR HALFORD
explained that is the existing statutory reference dealing with the
violation provision. He doesn't disagree with Senator Adams'
concern, he said.
SENATOR LEMAN asked for clarification of felonies, misdemeanors,
and violations. SENATOR HALFORD said the primary difference is
that a misdemeanor requires a culpable mental state.
SENATOR ZHAROFF said Section 4 changes the defendant's
responsibilities from showing a preponderance of the evidence to
clear and convincing which would be difficult. SENATOR HALFORD
explained that it is not a criminal standard, but it is a higher
standard than currently used.
Number 199
C. E. SWACKHAMMER, Deputy Commissioner, Department of Public
Safety, and Colonel Bill Valentine, Fish and Wildlife Protection,
joined the Committee.
SENATOR ADAMS asked him to comment on his concern with Section 2.
MR. SWACKHAMMER agreed that the fines were increasing by twice as
much. He explained that the penalty for merely not renewing a
license would be less than $1000. He said if a person is
commercially fishing without an entry permit it's charged as a
misdemeanor with a maximum fine of $15,000.
There was a brief discussion of fines.
MR. SWACKHAMMER said that every fishery is different. Different
standards are set. Courts have been fairly consistent and so has
the Department as far as exercising enforcement authority. He said
what they do now is not working.
SENATOR ADAMS noted there was no fiscal note. MR. SWACKHAMMER said
they would anticipate more misdemeanor trials in the
Dillingham/Naknek courts. He said this would mean a fiscal note of
$10,000 - $20,000 which he would prepare.
Number 374
DAVID INGRAM, Hearing Officer, Commercial Fisheries Entry
Commission, testified in favor of SB 316 saying it would give the
Department of Public Safety the tools they need for enforcement
around the state. He said these penalties are really aimed at the
flagrant violator.
SENATOR DONLEY said a large fine cannot be given for a minor
infraction.
Number 425
SENATOR ZHAROFF asked if a permit holder could lose his fishing
privileges if he had three misdemeanors in different fisheries.
MR. INGRAM replied yes, the judge has the discretion to suspend one
or more of the privileges.
Number 455
SENATOR FRANK moved to pass CSSB 316 from Committee with individual
recommendations. SENATOR ZHAROFF objected saying he was concerned
with the amendments suggested by the Limited Entry Commission. He
also thought the one year mandatory suspension provision was very
sudden compared to the three years it is now.
SENATOR LEMAN moved reducing the penalty to two misdemeanors within
ten years before mandatory suspension.
MR. INGRAM said that the Department of Public Safety would like to
see it remain one year of discretionary call by the judge and on
the second conviction move to mandatory suspension. He said the
problem is that they are not getting any misdemeanor convictions.
They are all being given violations, so no one is collecting
misdemeanor number one. They want to send the message to the fleet
that the legislature is concerned. Sympathetic cases can always be
dealt with on a violation level, he added.
There were no more objections and CSSB 316 passed from Committee
with individual recommendations.
Number 500
SENATOR MILLER announced SB 310 (STATE/PRIVATE/MUNI TIMBER
OPERATION/SALE) to be up for consideration.
SENATOR FRANK said the purpose behind the bill is to encourage
long-term investment in timber development to create long-term
stable jobs on a sustained basis. He said they wanted to maintain
a public process, but at the same time they want to allow the
Department an additional means to have a long-term sale negotiated
so that investment can be attracted under terms and conditions that
will result in value-added processing. He pointed out that any
forest management agreement would still fall under the Forest
Practices Act and be subject to existing permits, etc.
JERRY LUCKHAUPT, Division of Legal Services, said the bill deals
with the sale and management of state timber in state forests. He
reviewed briefly the bill's sections.
SENATOR ZHAROFF commented that the Forest Practices Act took a lot
of time and a lot of individuals were involved - the timber
industry, the Native Corporations, municipalities, fishermen,
tourism and environmental groups, etc. He asked how it changed the
provisions of the Forest Practices Act.
MR. LUCKHAUPT explained that Sections 6 - 15 make changes to the
Forest Practices Act. Some of the changes are corresponding
changes made to Title 38.
TAPE 94-15, SIDE B
Number 588
Sections 8 and 9 seem to be common sense changes, he noted,
removing the requirement that the Commissioner notify himself
whenever he engages in or allows operations on state land dealing
with removal of timber.
He said it does make substantial changes to the Forest Practices
Act especially some of the definition changes.
SENATOR ZHAROFF asked what lands were affected by this legislation.
SENATOR FRANK said it would have some effect on municipal and
private as well as state lands - no affect on federal lands. MR.
LUCKHAUPT said that a lot of the intent in the bill was to apply to
only state lands, although a couple provisions apply across the
board - for example the reforestation standards.
SENATOR ZHAROFF asked if the Forest Practices Act was not working.
SENATOR FRANK replied it was his intent to allow the Department to
do a long-term sale under a negotiated basis - with public input -
so that people who have the capability of making an investment will
have an assurance they will have a long-term stable supply. In so
doing, they would create a value-added industry rather than just
cutting and shipping. It would be done in a sustained yield
manner.
SENATOR ZHAROFF said one of the real problems he has with the bill
is like that of SB 308 which took a real slap at the public process
through the Coastal Zone Management policies. The concern is that
the public process is being circumvented.
SENATOR FRANK said he did understand the concern and thought
different language might clarify the issue.
SENATOR MILLER announced they would begin the teleconference and
called on Fairbanks to begin.
RICHARD BISHOP, Fairbanks, testified that statutory revisions
regarding forest management should assure that overall forest
management goals will be met, including the legitimate goal of
producing sustained yield commercial timber harvest. Cooperation
among agencies, general public, and commercial users is necessary.
They cannot support the bill as written, however. He said he had
submitted written testimony, but wanted to mention a few points
now. He recommended doing a clear cut on the statutory language
rather than selective cuts and then initiate a reforestation
effort. SB 310 has elements of confusion and concern: for
instance, does "a finding in the best interests of the state"
adequately address forest resource interests? There is no obvious
requirement for coordination of the forest management agreement
over local uses of forest land.
Number 489
BILL ALLEN, Fairbanks Chamber of Commerce, supported SB 310,
because it is essential to economic development in the interior of
Alaska for investors to have access to our resources and long-term
agreements must be available to insure that access.
MICHAEL WALLERI, General Counsel for Tanana Chiefs Conference,
introduced CHRIS MAISCH, Director, Forestry Department, who
accompanied him. He said they have provided the committee with a
position paper saying there were a profound number of concerns they
had with the bill. There were three pages of proposed amendments
and a discussion paper on the concept of sustained yield.
Tanana Chiefs Conference is the largest forestry management program
in the interior of Alaska and, he said, they cannot support the
bill and would oppose its passage.
MR. WALLERI said that basically the intent of the bill is to
authorize forestry management agreements which they agree with.
The bill drastically reduces public input and abandons sound
planning processes and a number of standards currently in the
Forest Practices Act, which isn't necessary.
He said there is a big difference between the state management and
private interest management. The state has a fiduciary obligation.
Private individuals do not have the same obligation.
MR. MAISCH testified that the way the bill is structured it removes
reference to AS 38 and AS 41 in regards to regional plans and also
forest management plans. Those are two important components in
which local communities have invested a lot of time. He said the
five year schedule was deleted in one section and that is important
to retain, because it provides notice to other land owners,
specifically, native allotment land owners that are inholders in
the state forest or potential proposed forest management
agreements.
MR. MAISCH explained that through coordinated sales they can start
managing for ecosystems rather than just for a piece of land
someone might own, a concept he said was important.
He said they could support a definition that would equate
"sustained yield" to the annual harvest of growth increment on the
cite. He also supported non-declining flow management as practiced
in the interior.
In conclusion, he said they are in favor of retention of area,
regional, and site specific forest plans. They support multiple
use designations for forest lands that include subsistence as a
consideration. They support deleting the proposed public access
requirements that affect private lands. They consider authorizing
coordination of state and private sales that encourage the
maintenance of sustained yield and ecosystem management concepts.
They are not in favor of the state selling timber at a net loss in
terms of revenue generation to the state.
SENATOR FRANK thanked them for the time they took in analyzing the
bill and said he looked forward to working with them on it.
SENATOR ZHAROFF asked them if the amendments took care of most of
their concerns. MR. MAISCH said essentially the amendments put
back in to place the Title 38 and 41 planning processes. They
think that the coordinated timber sale is an interesting concept
which needs developing.
JUDY WARWICK, Fairbanks, resident supported SB 310. She said the
cost and delay of duplication of forest land use plans has impeded
development where no other industry has the same requirement. A
mandated two year advance scheduling of sales under 500,000 board
feet and long-term timber management leases have not been an
option. Without the security of long-term leases, companies cannot
risk the capital investment required in this type of industry.
She also pointed out that the U.S. currently imports $6 million
worth of birch from Canada.
SENATOR MILLER said anyone could fax their comments to the
Committee.
JAN DAWE, Fairbanks resident, opposed SB 310. She said the written
testimony is the work of approximately 20 residents and
approximately 2,000 hours. She said they do not want SB 310 even
if it is amended. 4,000 acres is tripling the current harvest
level.
CELIA HUNTER, Fairbanks resident, opposed SB 310. The changes it
mandates range from completely rewriting the original purposes for
which the state forests were created to a literal sell out of those
forests to corporate interests and long-term sales arranged behind
closed doors between the Commissioner of DNR and the corporations
without any public notice or opportunity to comment until such
deals are foregone conclusions.
Present management policies adopted by DNR and the Division of
Forestry are existing support from a comprehensive cross section of
Alaska residents who have a long term stake in how their forests
are managed, she said. This cooperative effort will be scuttled if
SB 310 is adopted.
Number 338
MARY SHIELDS, Fairbanks resident, said she cares passionately about
the community. She said she is very mad, because it is the fourth
time she has had to leave work to voice her concerns. She said
Fairbanks residents have spent thousands of hours trying to work on
forestry issues, and the general voice says they don't want large
scale timber harvest in the Tanana Valley.
She said the people of Fairbanks want to be part of the decision
making process. Giving the Commissioner authority to make forest
management agreements is an outrageous infringement of the public
process.
MS. SHIELDS said she worked with Senator Fahrenkamp on the Forest
Practices Act and multiple use of the forest was the intent. They
have no right to change that.
GINNY HILL WOOD, Fairbanks resident, opposed SB 310. It blocks
citizens input on economic, ecological, or forestry issues. She
had testimony which she faxed to the Committee.
RON RICKETTS, Executive Director, Fairbanks Industrial Development
Corporation, supported SB 310. He said a majority of the people in
this community support development and the forest industry as they
envision it. They do not want to decimate any forest or trample
over any users. They do know they need to build a tax base on a
long-term basis, mostly because of the reduction in state revenues.
SEAN MCGUIRE, Fairbanks resident, said that there is broad and
overwhelming support for small scale local logging. He thought the
exact opposite of what Mr. Ricketts said was true. There is a
feeling that what they have is very special. The forest is simply
too valuable to have the large scale clear cutting this legislation
invites. This bill from start to finish is extreme, he said. It's
guaranteed to cause a political storm. He strongly opposed SB 310.
DALE HAGGSTROM, Fairbanks resident, opposed SB 310. He asked where
would the kind of management described in it leave the small scale
local logging operators and other forest related businesses that
depend on the forest for raw materials.
EVA SAULITIS, Fairbanks resident, was shocked that this bill shut
out public participation. This bill would make development of
commercial forest land the primary purpose of the Boards. She
asked Senator Frank which constituents this bill represented, not
those who are dependent on a long-term sustainability of the forest
or the small scale mill operators, wood crafters, hunters,
trappers, tourists, or subsistence users. This bill is designed to
please the wealthy and politically influential minority. It would
also benefit large outside logging companies. She said the bill
was a sleazy and shameful attempt at getting around the democratic
process.
TAPE 94-16, SIDE A
Number 001
MOLLY HUDSON, Fairbanks resident, said this bill eliminates public
input. She does not want to see big business devour our forest.
The authors of SB 310 do not care about small loggers, trappers, or
hunting and fishing guides. She said if this bill passes, all they
will be able to afford to do is change the way they vote.
SYLVIA WARD, Northern Alaska Environmental Center, said SB 310 was
not a fine tuning of the Forest Practices Act. She also said that
the assumption timber harvest can improve the economy or make up
the oil revenue shortfall is a myth with no basis in economic fact.
Developing timber resources will only dig a deeper budget hole.
According to a study by the legislative research agency the
Department of Natural Resources lost approximately $.90 on each
dollar in 1992. State timber revenues might improve as the price
of timber increases. Timber harvest and processing tends to drain
resources out of the economy. Most of the logs are exported to
Japan for processing. In addition, logging has a serious problem
with out of state hire. Only the fish processing industry
employees a higher percentage of non-Alaskans. Rather than
improving our communities, the influx of new residents further
stresses existing city, borough, and state supported services.
SENATOR MILLER announced that at this point there was a call on the
Senate. His intention was to bring this legislation back on March
16 for a further public hearing and adjourned the meeting at 5:20
p.m.
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