Legislature(1995 - 1996)
02/22/1995 03:50 PM Senate RES
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SENATE RESOURCES COMMITTEE
February 22, 1995
3:50 P.M.
MEMBERS PRESENT
Senator Loren Leman, Chairman
Senator Drue Pearce, Vice Chairman
Senator Steve Frank
Senator Rick Halford
Senator Georgianna Lincoln
Senator Lyman Hoffman
COMMITTEE MEMBERS ABSENT
Senator Robin Taylor
COMMITTEE CALENDAR
SENATE BILL NO. 69
"An Act relating to hazardous chemicals, hazardous materials, and
hazardous waste."
SENATE BILL NO. 63
"An Act relating to the Alaska Sport Fishing Industry Marketing
Council and a nonresident sport fishing license surcharge."
Oil and Gas Incentives
PREVIOUS ACTION
SB 69 - No previous action to record.
SB 63 - No previous action to record.
WITNESS REGISTER
Annette Kreitzer, Committee Aide
Senate Resources Committee
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on SB 69.
Peggy Goodstein
ARCO Alaska
P.O. Box 10036
Anchorage, AK 99510
POSITION STATEMENT: Supported SB 69.
Chester Weger, Acting Director
Division of Fire Prevention
Department of Public Safety
5700 Tudor Road
Anchorage, AK 99507-1225
POSITION STATEMENT: Answered questions regarding issues in SB 69.
Rita Venta
Anchorage Fire Department
1301 E. 80 th Ave.
Anchorage, AK 99510
POSITION STATEMENT: Supported SB 69.
Eric Stirrup
Kodiak West Charter
P.O. Box 4123
Kodiak, AK 99615
POSITION STATEMENT: Opposed SB 63.
Jeff Bush, Deputy Commissioner
Department of Commerce and Economic Development
P.O. Box 110800
Juneau, AK 99811-0800
POSITION STATEMENT: Opposed SB 63.
Bud Hodson
Alaska Sportfishing Industry
Tikchik Lodge, AK
POSITION STATEMENT: Supported SB 63.
Geron Bruce, Legislative Liaison
Department of Fish and Game
P.O. Box 25526
Juneau, AK 99802-5526
POSITION STATEMENT: Commented on SB 63 and its funding source
problems.
Max Lowe, General Manager
Regal Alaskan Hotel
4800 Spendard Rd.
Anchorage, AK 99510
POSITION STATEMENT: Supported SB 63.
Farley Dean
Mat-Su Professional Guides
Wasilla, AK 99687
POSITION STATEMENT: Supported SB 63.
Ed Sharp
Wilderness Lodge
P.O. Box 190711
Anchorage, AK 99519
POSITION STATEMENT: Supported SB 63.
Bill Foster, President
Sitka Charter Boat Operators
2810 Sawmill Creek Rd.
Sitka, AK 99835
POSITION STATEMENT: Opposed SB 63.
Ben Ellis, Executive Director
Kenai River Sportfishing Association
P.O. Box 1228
Soldotna, AK 99669
POSITION STATEMENT: Commented on SB 63.
Don Johnson
P.O. Box 876
Soldotna, AK 99669
POSITION STATEMENT: Opposed SB 63.
Joseph Jolly, Board member
United Cook Inlet Drift Association
HC 2, Box 753
Soldotna, AK 99669
POSITION STATEMENT: Opposed SB 63.
Dick Hoffman
5025 Thane Rd.
Juneau, AK 99801
POSITION STATEMENT: Opposed SB 63.
Selim Hassan
P.O. Box 22298
Juneau, AK 99801
POSITION STATEMENT: Opposed SB 63.
ACTION NARRATIVE
TAPE 95-11, SIDE A
SRES 2/22/95
SB 69 REPORTING OF HAZARDOUS SUBSTANCE
Number 001
CHAIRMAN LEMAN called the Senate Resources Committee meeting to
order at 3:50 p.m. and announced SB 69 to be up for consideration.
ANNETTE KREITZER, Resources Committee Aide, explained that SB 69 is
not a new idea. The State Emergency Response Commission first
considered this back in 1987-88. Currently there are two
placarding programs; one is under Title 18 done by the State Fire
Marshal's office which has placarded 14 sites outside the
Municipality of Anchorage and under Title 29 which allows
municipalities to have their own placarding program.
SB 69 would allow the continuance of the Title 29 placarding
program, but it would delete the State Fire Marshal's placarding
program. It would also create a single application form of 4 pages
taken from the current EPA Tier II form.
PEGGY GOODSTEIN, ARCO Alaska, testified in support of SB 69 which,
she said, is a real improvement in chemical reporting. It will
simplify regulations and reduce costs while still providing
protection for emergency response personnel and the community.
CHESTER WEGER, Acting Director, Division of Fire Prevention, said
he would answer their questions.
SENATOR HALFORD commented on the fact that the existing law allows
a municipality to require reporting in lesser quantities than the
State law and asked him if any municipalities had done that. MR.
WEGER answered that the only municipality that has their own
program is Anchorage. Their reporting quantities are the same as
the state law. Removing that authority wouldn't have an effect on
any existing requirement. He said the current program that has
been in effect since 1987 is not working.
SENATOR LEMAN asked why there were only 14 sites placarded. MR.
WEGER answered that the primary reason is that they don't have the
enforcement personnel to enforce the program.
RITA VENTA, Anchorage Fire Department, said she is the
Administrator of the Community Right-to-Know Program for the
Municipality of Anchorage. She said 730 businesses participate in
their program and she said their placarding program is 95%
effective. She said she didn't have a problem with the
standardized Tier II form. It is important to their patrons in
Anchorage and to fire prevention to be able to maintain their
reporting requirements. She noted that their requirements are the
same as state requirements, but those are more stringent than
federal requirements.
The teleconference connection broke at this point and Ms. Venta was
disconnected.
Number 160
MS. KREITZER clarified that SB 69 would require a change in the
Anchorage program. The change is on page 2, lines 27 and 28 where
it deletes "a consumer commodity of a hazardous material in the
quantity of more than 1,000 lbs" and the reason is it covers
facilities like K-Mart or Wal-Mart where there are large quantities
of fertilizers and paint remover, etc. Fire departments readily
acknowledge that it is easy to recognize that these stores those
kinds of things.
Number 211
SENATOR FRANK asked what a placard does. MS. KREITZER said it's
purpose is warn first responders and fire fighters that there is a
hazard in the building. There have been additional federal
requirements for reporting and facilities must now report directly
to fire departments and to local emergency planning committees. It
brings about the question of whether there is a need for this
redundant program of marking with a placard when fire departments
go in and do pre-fire planning surveys.
Basically, she said, this bill is attempting to bring about one
form for four reporting requirements - Emergency Planning,
Community Right-to-Know, the Fire Marshal, and handling the
municipality placarding in Title 29. She said the placard goes on
the outside of a building.
Number 256
MS. VENTA commented that the placarding program works very well for
them and it is used for above ground fuel storage, but is not
needed for underground tanks. She felt it was important to keep
hazardous waste and acute hazardous waste listed in the bill. Even
though they are regulated in other areas, it is important to know
those items are on-site, especially if they are in large
quantities.
She had no problem with dropping the consumer commodity reporting
requirement of 1,000 lbs. The state and municipality requirements
are significantly lower than EPA's. For most things it is 500 lbs.
and for EPA it's 10,000 lbs.
SENATOR FRANK commented that was a big difference. MS. VENTA
explained that there were no federal requirements when Anchorage
and the State set their requirement figures.
MS. KREITZER said in writing this legislation the working group
attempted first of all to agree on what was to be reported and to
try to get the same things reported under all the different laws.
Secondly, they addressed the question of quantities.
SENATOR LINCOLN noted that while the Alaska Local Emergency
Planning Committee Association supports the legislation, they
listed five areas as suggestions for compromise. She asked if any
of those were in the bill or was there any thought to incorporate
those items in the bill. She didn't know for sure if exempting
facilities out of a public fire response jurisdiction would help
the smaller communities or tie their hands further. She said these
concerns could be addressed at a later meeting.
MS. KREITZER explained regarding exempting facilities, unless a
city elected to begin a placarding program, they are exempt. The
repeal of AS 18.73.10 does this and on page 2, line 6.
MS. VENTA came back on line and responding to a question listed
some of the hazardous substances currently reported like gasoline,
diesel, paint thinners, solvents, etc.. She mentioned that in
Anchorage there are a number of radio active sites.
SENATOR LEMAN said they would next take up oil and gas incentives.
He noted a memorandum dated February 17, 1995 which contained ideas
taken from testimony from the previous meeting, as well as other
sources. He asked the Committee to see if there were some ideas in
there that they could formulate into legislation.
MS. KREITZER said she hoped to get legislation on this issue
drafted by March 3 - 7. She said there was most interest in high
cost marginal wells, higher credits with some additional disclosure
from companies under the Exploration Incentive Credit Program,
reinstatement of the discovery royalty credit, and royalty
reduction for gas development in Bush/Rural Alaska.
SENATOR LEMAN said item 24 had been proposed to the Division of Oil
and Gas - to reduce or eliminate the royalty rate on new field
exploration (or for field extensions) until payout.
SENATOR FRANK asked if there was any discussion about over-all tax
policy as it relates to trying to reduce litigation risk - so that
people would know what their tax would consist of instead of
fighting about it in court.
MS. KREITZER said there was some general comment about that, but
not a specific recommendation. SENATOR LEMAN said he had heard the
State had reduced the possibilities for litigation. SENATOR FRANK
said he heard that these tax cases were always limited to some
period in the past to some period in the more recent past, and then
they've got from that point forward to still litigate. SENATOR
FRANK suggested simplifying tax codes since we have a large mix of
taxes now, each one complicated in its own fashion.
SENATOR LEMAN said to send further comments and ideas to him so
they could formulate something to begin discussing.
SRES 2/22/95
SB 63 SPORT FISHING MARKETING COUNCIL/SURCHARGE
SENATOR LEMAN announced SB 63 to be up for consideration.
ERIC STIRRUP, Kodiak resident, opposed SB 63, because sport fishing
is better served by private industry, an industry which stands
quite well on its own feet. He didn't understand the rationale
behind this bill, other than it creates another council, another
State funded organization, more government, with the cost put on
the backs of non-resident recreational anglers.
JOSH FINK, Legislative Aide to Senator Kelly, said SB 63 has two
goals, first to increase revenues going into the ADF&G fund for
sport fish research and management which includes habitat and
species restoration; and second, to create a new self-funded
council to both promote Alaska as a sport fishing destination and
to inform anglers of the diversity of fishing experiences available
lessening the crowding on current high impact areas. SB 63 would
establish a $5 fee on non-resident fishing licenses which would be
deposited directly into the constitutionally established Fish and
Game fund. This fund can only be utilized for fish and game
research and management which includes species and habitat
restoration. More than $1.1 million of new revenue would go into
the fish and game fund.
The Council would implement a sport fishing marketing program. He
admitted there was a problem with the funding mechanism. They may
receive industry contributions as well as some general fund
contributions, but the money will be going into a dedicated fund,
so that could be a problem.
MR. FINK said that the prime sponsor would probably support
reducing the size of the council and adding the Director of Tourism
and Director of Sport Fish as permanent members. He concluded by
saying that sport fishing is a major industry worth hundreds of
millions of dollars, yet there is no statewide organization that
focuses on the marketing of this industry. This council would
organize the industry and allow it to help itself. It would help
alleviate the problem of over-crowding on popular rivers by helping
inform the public of less crowded streams and rivers.
SENATOR LEMAN asked how they would keep from creating more
conflicts on the already crowded rivers. MR. FINK responded that
there are a lot of areas that don't see sport fishermen which would
be highlighted by the council.
SENATOR HOFFMAN said the Legislature had raised the license fees a
few years ago and asked what they are currently. MR. FINK answered
that a non-resident license for the whole season is $50, the 14-day
non-resident license is $30, the three-day is $15, and the one-day
is $10. SENATOR HOFFMAN said he thought they pushed the limits on
the disparity test between resident and non-resident last time and
they would probably have to increase the fee for residents as well.
SENATOR LEMAN remarked that the disparity is supposed to be no more
than 3 to 1.
TAPE 95-11, SIDE B
Number 568
SENATOR LINCOLN said she didn't know why this bill was introduced,
because we already have the Alaska Tourism Marketing Council which
promotes Alaska. Part of that is the fisheries. She noted that
license fees had already been increased recently and it looks like
a $5 surcharge was going to be imposed only if the Commissioner
goes into some kind of contract. She said 19 people on a
Commission were too many. MR. FINK said it was modeled after the
ATMC. She thought the council would just duplicate exactly what we
have now.
MR. FINK said it's the difference between a shot gun approach and
rifle approach. The ATMC does a fine job, but their efforts are
largely concentrated on cruise ships. He said they are amenable to
dropping the size of the council to 11.
SENATOR FRANK asked if he proposed a match by the industry and if
so, what mechanism would they use. MR. FINK said he did want a
match from the industry. This is a part of the bill that needs
work. They are considering some type of sliding scale registration
fee to be part of this non-profit industry association, based on
gross revenues.
SENATOR FRANK asked if that would be a voluntary mechanism. MR.
FINK said they were working on that issue now.
SENATOR LEMAN held up a copy of a sport fishing brochure from ADF&G
and asked Mr. Fink if he was aware that this was being done and was
it what they were thinking about doing. Mr. Fink indicated he
hadn't seen it.
Number 521
JEFF BUSH, Deputy Commissioner, Department of Commerce and Economic
Development, said his department supports all marketing efforts for
the State and encourages efforts to add funds to the State's
marketing efforts. It is because of that the Department opposes
this legislation. The State has a generic approach to its
marketing at present. That's the way ATMC and the Division of
Tourism operate. Their concern is that this is an effort to
fragmentize what is a finite amount of marketing dollars.
Another problem is with how the program is going to be
administered, because a new bureaucracy is being created that then
has to contract out efforts to market Alaska. He said an
alternative to creating a council would be to just give this group
a grant. A council allows decisions to be made on how monies are
to be spent. The problem is that you need some staff to do that,
because there will be multiple contracts that have to go under the
procurement code and that have to be managed as State contracts.
MR. BUSH said the sponsor of SB 63 stated he did not want to have
a negative impact on any of the existing marketing the state does,
but as a practical matter, this particular council will take money
away from the ATMC. He explained that the Vacation Planner,
published by the ATMC, is funded through advertising from private
businesses -many of which are sport fishing related. Those people
would take their money from the Vacation Planner and put it in an
organization that promotes sport fishing exclusively.
MR. BUSH said he supported the idea of sport fishermen getting an
association together, but he questioned the council approach within
the Department of Commerce and Economic Development.
Number 458
SENATOR FRANK asked about the notion of increasing non-resident
fees and putting that money into a generic marketing program that
would include sports fishing. MR. BUSH said there may be a legal
problem with the surcharge. Assuming you can overcome this hurdle,
that seems a very reasonable way to fund tourism marketing efforts.
SENATOR FRANK said some people were concerned that all we do is
generic advertising. He thought that there are some niches that
need some focus.
MR. BUSH said he appreciates his comments very much and that the
Governor and the Commissioner have placed a priority on looking at
the way that all Alaska marketing is done. They feel they want to
market areas and interests that have not been properly covered in
the past. Rural tourism is one of the priorities on their agenda
right now.
Number 401
BUD HODSON, Alaska Sportfishing Industry, said he supports this
bill. His original concept was to create a marketing council that
could look at the sport fishing industry and plan for the future.
He said they first thought the $5 surcharge was a good mechanism
for self funding; they did not want to come to the Legislature and
ask for general funds. He said they are working on resolving the
surcharge issue. He explained that with the bag limits and
closures in the sport fisheries, some businesses lose a component
of their summer. He thought effort could be spent marketing August
and September and alternate, under-utilized fisheries, noting that
mostly king salmon are targeted by sport fishermen. The sockeye
allocation is a problem in Cook Inlet, but not the rest of the
state. He said they needed to educate people about what they have
to offer.
GERON BRUCE, Alaska Department of Fish and Game, addressed the
funding source problems of this bill. He said the Division of
Sport Fisheries has two major funding sources, neither of which are
general fund. It receives funds from the Federal Aid and
Restoration (FAR) Program and a federal Fish and Game Fund. The
FAR Program requires that the Fish and Game fund be used only for
certain purposes and not diverted to other uses. This bill, he
thought, would be classified as a divergence of funds. Mr. Bill
Martin, Administrator for the Federal Aid Program in the State of
Alaska, has supported this view and said it would jeopardize and
result in the loss of about $10 million in federal funds.
Number 303
MAX LOWE, Regal Alaskan Hotel, said he has watched over the past
nine years the continued positive impact of Alaska's sports fishing
industry on individual tourism related businesses. He has also
experienced the immediate dramatic declines in revenue during
closures and limitations on the fishing resources. It is
imperative that the tourism, sportfishing, and small businesses
have a voice in their own future. This is a marketing effort that
will create more jobs and more revenue for everyone.
SENATOR LEMAN asked him what percentage and what amount of his
income was related to sport fishing customers. MR. LOWE answered
that it's been between 17% - 23% of his annual business.
FARLEY DEAN, owner of a resort and Vice President of the Mat-Su
Valley Professional Guides Association, said sport fishing in
Alaska has to be better represented. He said sport fishermen are
going to many other places than to Alaska, because they are no
longer "getting their bang for their buck in Alaska."
Number 187
ED SHARP, sport fishing lodge owner, supported SB 63. He said the
sport fishing is growing very fast in this state. It needs more
promotion for "off the beaten track" destinations. SB 63 does have
some problems with the funding mechanism and the 19 member Board is
too many.
BILL FOSTER, President, Sitka Charter Boat Owners Association,
opposed SB 63. It is not needed in Sitka where allocation is an
already tense situation. In Southeast Alaska king salmon are
allocated between commercial and sport anglers. There are not
enough fish for each Southeast resident to have just one fish.
Because of the U.S./Canada Salmon Treaty, there may be even less in
the future. He said that presently the people in the private
sector are doing a good job of marketing.
Number 117
BEN ELLIS, Executive Director, Kenai River Sport Fishing, testified
in tentative support of the concept behind SB 63 - providing that
the funding mechanism can be addressed successfully. This state
has a big sport fishing potential that needs to be marketed in a
clear, concise, and logical manner. The fisheries have been a
critical part of Alaska's past and will be important in its future.
Sport fishing, in particular, fuels a growing tourism economy. The
need for marketing sport fishing experiences was noted in a report
by the Governor's transition team.
SENATOR LEMAN said the Kenai River fishery is an example of a
fishery that is fully utilized and additional activity should be
focused on under-utilized fisheries. He asked Mr. Ellis if he
agreed with this. MR. ELLIS said it would be hard to market Alaska
sport fishing without, at some point, pointing out that the Kenai
River is the greatest sport salmon fishing river in the world. The
Kenai, incidentally, holds more world records than any river and he
thought it would be unrealistic to not include the Kenai River in
a marketing effort.
Number 36
DON JOHNSON, Soldotna resident, said he is a sport fishing guide on
the Kenai River. He said SB 63 leaves out the important element of
allocation of fisheries to the potential people this bill is
targeted to attract.
TAPE 95-12, SIDE A
Number 001
MR. JOHNSON had a problem figuring out how the allocation was going
to change to accommodate more sport fishermen in Alaska. He said
this bill was attempting to sell a non-existent product, basically.
JOSEPH JOLLY, Board member, United Cook Inlet Drift Association,
said this bill has a lot of problems. His biggest concern was with
habitat. This legislation would promote increased pressure to the
over worked sport fishing habitat of the Alaskan waters.
DENNIS RANDA, State Council of Trout Unlimited, said, "What we are
facing is lack of planning." He commented that if we don't start
planning for the future of sport fishing in Alaska, we will have
the same situation as in Oregon and Washington where there is very
little sport fishing left.
Number 133
DICK HOFFMAN, commercial and sport fisherman, opposed SB 63. He
said the concept of targeting some species that aren't being
utilized has some merit, but allocation would be a conflict in the
near future. At this time, the International Pacific Halibut
Commission and the North Pacific Fisheries Management Counsel are
looking at placing restrictions on the harvest of halibut by the
guided sport fleet. In Southeast the U.S./Canada Salmon Treaty has
put a restriction on us and there will be further cutbacks on the
quota available on king salmon, he said.
To promote a rapid growth of the guided sport fishery is going to
lead invariably to increased conflicts between subsistence, the
sport user, the guided sport user, and the commercial fleet that
will have to be battled out either in the Board of Fisheries or in
the Legislature.
MR. HOFFMAN said that a few years ago commercial fishermen were
assessed 1% of their gross income every year to help promote their
product. Maybe there should be some sort of marketing tax on the
guided charter fleet.
In Southeast Alaska the king salmon are split 20% for sport
fishermen and 80% for commercial fishermen. That is changing, for
when the Board of Fisheries meets again it will a 25%/75% split.
Number 169
SELIM HASSAN, owner of a sport fishing business, said he deals
strictly with fly fishing clients. His clients are almost 100%
from out of state. He said he lived in Oregon for about 10 years
and he saw what happened with habitat which is very important. If
you don't have it, you don't have fish.
MR. HASSAN said he has a business relationship with Holland America
and he is aware of the cruise lines interest in fishing and he goes
out of his way, geographically, to take his clients to good spots.
He doesn't advertise personally. Their advertising is done by
magazine articles and word of mouth. When it comes to Alaska,
Alaska sells itself. He has talked to many people from Russia,
Europe, Japan, and other places. Everyone knows where Alaska is
and what Alaska has. He doesn't have to sell Alaska. He just has
to sell his programs.
He thought the concept of SB 63 was good, but he thought it would
be better for the sport fishermen get together and form a council
of their own. He didn't think the state had the revenues to fund
another council.
SENATOR LEMAN thanked everyone for their testimony and said he
planned to hold this bill over and work on it.
SENATOR LEMAN adjourned the meeting at 5:40 p.m.
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