Legislature(2001 - 2002)

02/09/2001 03:43 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                     ALASKA STATE LEGISLATURE                                                                                   
                    SENATE RESOURCES COMMITTEE                                                                                
                         February 9, 2001                                                                                       
                             3:43 p.m.                                                                                          
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator John Torgerson, Chair                                                                                                   
Senator Rick Halford                                                                                                            
Senator Pete Kelly                                                                                                              
Senator Kim Elton                                                                                                               
Senator Georgianna Lincoln                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Drue Pearce, Vice Chair                                                                                                 
Senator Robin Taylor                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
Status Briefing: Donald H. Carlson et al. vs. State of Alaska                                                                   
Commercial Fisheries Entry Commission by:                                                                                       
 Mr. Steve White, Assistant Attorney General                                                                                    
 Mr. Brad Pierce, Economist, Office of the Governor                                                                             
                                                                                                                                
CS FOR HOUSE JOINT RESOLUTION NO. 6(RES)                                                                                        
Relating  to opposition  to  the inclusion  of national  forests  in                                                            
Alaska within former President  Clinton's Roadless Area Conservation                                                            
rule  and   supporting  the   overturning   of  this  inclusion   by                                                            
litigation,  by congressional   action, or  by action  of  President                                                            
Bush.                                                                                                                           
     MOVED SCS CSHJR 6 OUT OF COMMITTEE                                                                                         
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
HJR 6 - No previous action to consider.                                                                                         
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Representative Peggy Wilson                                                                                                     
State Capitol Bldg.                                                                                                             
Juneau AK 99811                                                                                                                 
POSITION STATEMENT: Sponsor of HJR 6.                                                                                         
                                                                                                                                
Ms. Rachel Moreland                                                                                                             
Alaska Forest Association                                                                                                       
111 Stedman St., Ste 200                                                                                                        
Ketchikan AK 99901                                                                                                              
POSITION STATEMENT: Supported HJR 6.                                                                                          
                                                                                                                                
Mr. Dick Coose                                                                                                                  
P.O. Box 9533                                                                                                                   
Ketchikan AK 99901                                                                                                              
POSITION STATEMENT: Supported HJR 6.                                                                                          
                                                                                                                                
Mr. Joe Sebastian                                                                                                               
Prince of Wales Island, Alaska                                                                                                  
POSITION STATEMENT: Opposed HJR 6.                                                                                            
                                                                                                                                
Ms. Corrie Bosman                                                                                                               
P.O. Box 6157                                                                                                                   
Sitka AK 99835                                                                                                                  
POSITION STATEMENT: Opposed HJR 6.                                                                                            
                                                                                                                                
Mr. Don Mueller                                                                                                                 
Old Harbor Books                                                                                                                
P.O. Box 1042                                                                                                                   
Sitka AK 99835                                                                                                                  
POSITION STATEMENT: Opposed HJR 6.                                                                                            
                                                                                                                                
Mr. Mark Rorick                                                                                                                 
Sierra Club                                                                                                                     
1055 Mendenhall Peninsula Blvd. Rd.                                                                                             
Juneau AK 99801                                                                                                                 
POSITION STATEMENT: Opposed HJR 6.                                                                                            
                                                                                                                                
Mr. Jan Konigsberg                                                                                                              
Alaska Salmonid Biodiversity Program                                                                                            
Trout Unlimited                                                                                                                 
7511 Labrador Circle                                                                                                            
Juneau AK 99801                                                                                                                 
POSITION STATEMENT: Opposed HJR 6.                                                                                            
                                                                                                                                
Mr. Pat Veesart, Executive Director                                                                                             
Sitka Conservation Society                                                                                                      
P.O. Box 6193                                                                                                                   
Sitka AK 99835                                                                                                                  
POSITION STATEMENT:  Opposed HJR 6.                                                                                           
                                                                                                                                
Ms. Katya Kirsch, Executive Director                                                                                            
Southeast Alaska Conservation Council (SEACC)                                                                                   
419 Sixth St, #329                                                                                                              
Juneau AK 99802                                                                                                                 
POSITION STATEMENT: Opposed HJR 6.                                                                                            
                                                                                                                                
Ms. Sue Schrader                                                                                                                
Alaska Conservation Voters                                                                                                      
P.O. Box 22151                                                                                                                  
Juneau AK 99802                                                                                                                 
POSITION STATEMENT: Opposed HJR 6.                                                                                            
                                                                                                                                
Mr. Darrell Thomas                                                                                                              
Aide to Senator Taylor                                                                                                          
State Capitol Bldg.                                                                                                             
Juneau AK 99811                                                                                                                 
POSITION STATEMENT:  Supported HJR 6.                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 01-10, SIDE A                                                                                                            
Number 001                                                                                                                      
                                                                                                                                
                                                                                                                                
CHAIRMAN  JOHN  TORGERSON  called  the  Senate  Resources  Committee                                                          
meeting to order  at 3:43 p.m. and said they would  hear an overview                                                            
of  the Carlson  case  dealing  with the  differential  between  the                                                            
license fees for residents and non-residents.                                                                                   
                                                                                                                                
MR.  STEVE  WHITE, Assistant  Attorney  General,  said  the  lawsuit                                                            
originally  filed in 1982 by six non-resident  commercial  fishermen                                                            
who  claimed that  the  state's  fees it  charges  for non-resident                                                             
limited entry  permits and commercial  fishing crew member  licenses                                                            
violate two clauses of  the federal Constitution. The statute that's                                                            
being challenged  has been  a state policy  since 1978. It  requires                                                            
that the  Entry Commission  charge  non-residents  three times  what                                                            
they charge  a resident  for the  same permit.  The permits  have to                                                            
reflect the  different rates  of economic  return for the  different                                                            
fisheries  and there  are  five different  ranges  of limited  entry                                                            
permit fees.  They range from the  least valuable $50 resident/$150                                                             
non-resident up to $250/$750.                                                                                                   
                                                                                                                                
The other  statute at  issue is  the one that  charges non-resident                                                             
crew members  $65 more than  resident crew  members. That is  not as                                                            
significant in  terms of economic implications as  the limited entry                                                            
permits, Mr.  White said. The legal  issue before the courts  is how                                                            
much more  can the state  charge non-resident  commercial  fishermen                                                            
than resident.                                                                                                                  
                                                                                                                                
MR. WHITE said that the  case became a class action lawsuit of about                                                            
11,000 non-resident  commercial fishermen.  About seven years  after                                                            
the case  was first  filed, the  state won summary  judgment  at the                                                            
trial court.  Superior Court  Judge Hunt held  that the state's  fee                                                            
schedules were constitutional.                                                                                                  
                                                                                                                                
MR. WHITE  said that  the two  provisions of  the U.S. Constitution                                                             
that are being  challenged are the Commerce Clause,  which generally                                                            
states that  the states  cannot interfere  with interstate  commerce                                                            
and the  second, more  important one  is called  the Privileges  and                                                            
Immunities Clause  which generally only applies to  situations where                                                            
both   residents   and   non-residents   are   pursuing    important                                                            
constitutional  rights  like  the right  to  pursue a  vocation.  He                                                            
explained that  this means that states  have to treat residents  and                                                            
non-residents  substantially  equal.  However, there  are some  ways                                                            
states can charge non-residents a little bit more.                                                                              
                                                                                                                                
MR. WHITE  explained after  the state  won the  first round,  it was                                                            
appealed  to the Alaska Supreme  Court in  1990 and the trial  court                                                            
decision was sent  back with ways to determine how  much more a non-                                                            
resident  can be charged.  The Court  said they  have to be  treated                                                            
with  substantial  equality  except that  the  state can  take  into                                                            
consideration  the expenditures  it makes  for services it  provides                                                            
like commercial  fishing  management  services. The  state can  take                                                            
into account the amount  that's paid for those services by residents                                                            
through taxes  that only residents pay. The Supreme  Court said that                                                            
Alaskans don't pay any  broad based taxes to support state services.                                                            
However  it does contribute  the  residents' oil  revenues into  the                                                            
state  budget and  pays for all  the services  including  commercial                                                            
fisheries. The Supreme  Court rationalized that the state could take                                                            
into account the oil revenues  that pay for commercial fisheries and                                                            
allocate  those to the residents  and through  a formula, the  state                                                            
could determine how much to charge a non-resident.                                                                              
                                                                                                                                
MR. WHITE  said the case  went back to Trial  Court and the  formula                                                            
was litigated  for five more  years and had  no precedent.  In 1995,                                                            
they  won  summary   judgment  before  Trial  Court  (before   Judge                                                            
Michalski).  This was  again appealed  to the  Alaska Supreme  Court                                                            
which again reversed  the Trial Court saying that  their formula was                                                            
how much the state could charge non-residents.                                                                                  
                                                                                                                                
The formula says that the maximum permissible fee for a non-                                                                    
resident permit  or license is the same fee as a resident  permit or                                                            
license and in addition  a "surcharge" could be added based upon the                                                            
following: Take the amount  the state spends on commercial fisheries                                                            
each year  and divide it  by the Alaska population  and that  is the                                                            
number that  each Alaskan contributes  to commercial fisheries  each                                                            
year from  the budget.   Then, if  you put in  a factor, which  is a                                                            
percentage  of the state  budget from oil  revenues ratcheting  that                                                            
down to  just the  amount the residents  pay for  the services  that                                                            
non-residents  don't pay, you then come up with the  number which is                                                            
the maximum amount of the difference that can be charged a non-                                                                 
resident for that year from that charged to a resident.                                                                         
                                                                                                                                
MR. WHITE explained  that the third handout is a description  of the                                                            
lawsuit and  included an  example. The Supreme  Court held  that the                                                            
Commerce  Clause does not  apply to this  case; only the  Privileges                                                            
and Immunities  clause  applies. The  class attempted  to have  that                                                            
decision reviewed  by the U.S. Supreme  Court which did not  take it                                                            
up.                                                                                                                             
                                                                                                                                
The problem with  the state's calculation in 1996  is a factor using                                                            
the number  of commercial fishermen  in the state as a divisor.  The                                                            
Supreme Court  said no, that they  had to use the entire  population                                                            
of the  state  theorizing  that everyone  in the  state contributes                                                             
something  towards commercial  fisheries management  from their  oil                                                            
revenues.  The Supreme  Court said to  go back  and put a  different                                                            
number  in and  that's what  they have  been litigating  ever  since                                                            
1996.                                                                                                                           
                                                                                                                                
Since then,  they have been litigating  in two different  areas, Mr.                                                            
White said.  One is if there are refunds  due to non-residents,  how                                                            
would  they deal  with  them. Would  they  have to  pay prejudgment                                                             
interest, for  example? The Superior  Court ruled that they  have to                                                            
do that.  The state  will appeal  that issue to  the Alaska  Supreme                                                            
Court the next time.                                                                                                            
                                                                                                                                
The state also  argued that the class  action is not an appropriate                                                             
vehicle for  this kind of lawsuit  and the Superior Court  held that                                                            
it was.  The state argued  other legal issues  dealing with  refunds                                                            
which they will appeal, also.                                                                                                   
                                                                                                                                
MR. WHITE said  that another thing  they have been litigating  which                                                            
culminated  in  the trail  last  summer in  Anchorage  before  Judge                                                            
Michalski is what expenditures  the state can include in that budget                                                            
over the  past 19 years.   The Department  of Law  came up with  six                                                            
different  categories of  expenditures  and presented  those to  the                                                            
Court through  various expert  economists and  tried to identify  as                                                            
many  expenditures   that  are  reasonably  related   to  commercial                                                            
fisheries management.  The first category  was the operating  budget                                                            
costs  to the  state  including  things like  salaries.  The  second                                                            
category  was an  overhead factor  which includes  support  services                                                            
like secretaries.  The Superior Court  ruled those were appropriate                                                             
costs. The Court  rejected the other four categories  which involved                                                            
things  like the  state's  capital  budget  expenditures  supporting                                                            
commercial  fisheries,   harbors,  and  hatcheries  (amortized).   A                                                            
calculation  done at the  University of  Alaska Anchorage  projected                                                            
what the  loss of population  would be if  the commercial  fisheries                                                            
industry  was not present  in Alaska. They  determined about  9 - 10                                                            
percent  of the population  would  probably not  be here. The  state                                                            
took that factor  and applied it to  all the general infrastructure                                                             
costs  to  the state  like  roads,  hospitals,  highways,  etc.  and                                                            
theorized  that if the  commercial fishing  industry were not  here,                                                            
then they wouldn't  have those costs. The Trial Court  would not let                                                            
them include those costs, either.                                                                                               
                                                                                                                                
Another  category that  the  Court rejected  was  the hatchery  loan                                                            
subsidy  that the  state provides  to hatcheries  at a below-market                                                             
rate. Another  category was  the opportunity  cost to the fish.  The                                                            
state did not  take the common property resource and  give it to the                                                            
fishermen to  extract the value and  how much is that value  and the                                                            
cost to the state.                                                                                                              
                                                                                                                                
The Superior Court rejected  four of the six categories, but allowed                                                            
the state's  argument  based on  a figure  he pointed  out on  their                                                            
presentation.  The state ran the figures for FY 96  as a sample and,                                                            
had  the Superior  Court  allowed  all those  cost  categories,  the                                                            
permissible  differential   would  have  been  $570.   "Because  the                                                            
Superior  Court  knocked  out  four  of  the  six,  the permissible                                                             
differential for that year was only $155."                                                                                      
                                                                                                                                
MR. WHITE said the state  took that $155 differential and calculated                                                            
how much would  be owed for that one year, plus interest.  The total                                                            
was $1.4 million.  Since then, he  has been trying to move  the case                                                            
through the  Trial Court to  get a final judgment  so that  he could                                                            
take it  up to the Alaska  Supreme Court and  appeal all the  issues                                                            
that  were found  against  the state  (budget, interest,  and  class                                                            
action qualification issues).                                                                                                   
                                                                                                                                
A final judgment from the  Trial Court includes a calculation of the                                                            
total principal  and interest that the state owes  for all 19 years.                                                            
He anticipated those figures  would be ready by mid-March. The Court                                                            
will enter  a final  judgment  and then  be set to  appeal. The  law                                                            
requires the state  to notify as many non-residents  as they can and                                                            
tell them they may have a refund due and get current addresses.                                                                 
                                                                                                                                
MR. WHITE  said the  appeal would  probably happen  this summer  and                                                            
they will  then do a briefing  and the Supreme  Court will  have the                                                            
case  in the fall  ready  for a decision.  When  the Superior  Court                                                            
announces the  final judgment, there will be a figure  of around $30                                                            
million and there  will be press coverage. He assured  the committee                                                            
that wasn't  the final figure  and that it  just sets the stage  for                                                            
appeal.  He felt  they could  reduce  the figure  significantly  and                                                            
predicted they would know in another year.                                                                                      
                                                                                                                                
Number 1100                                                                                                                     
                                                                                                                                
CHAIRMAN  TORGERSON  asked   if the  11,000   class  action  members                                                            
included crew member licenses.                                                                                                  
                                                                                                                                
MR. WHITE answered  that was just  limited entry permit holders.  It                                                            
probably won't affect crew member licenses.                                                                                     
                                                                                                                                
CHAIRMAN TORGERSON  asked if he understood correctly  that Mr. White                                                            
was not going  to recommend making any payments off  the lower court                                                            
ruling because he would  appeal right away and there wouldn't be any                                                            
payments due this fiscal year.                                                                                                  
                                                                                                                                
MR. WHITE said that was right.                                                                                                  
                                                                                                                                
CHAIRMAN  TORGERSON  asked if  he felt  confident  about the  higher                                                            
court accepting  the hatchery and  capital budgets or at  least some                                                            
of the four issues being overturned.                                                                                            
                                                                                                                                
MR. WHITE  replied that  he thought  they could  make a really  good                                                            
case  that the  capital  expenditures  clearly support  and  benefit                                                            
commercial fisheries  - over 90 percent of hatchery  fish are caught                                                            
by  commercial  fishermen.  He  felt  confident  about  the  capital                                                            
expenditures. The overhead  cost factor based on population decrease                                                            
depends  on  expert witnesses  and  the  other  side had  an  expert                                                            
economist  from  Florida   who  said  if  the  state  didn't  manage                                                            
commercial fisheries,  the federal government would;  so there would                                                            
still  be commercial  fisheries. He  felt pretty  comfortable  about                                                            
hatchery loan  subsidies. The last  one, "the opportunity  cost is a                                                            
pretty esoteric economic theory that may or may not…"                                                                           
                                                                                                                                
CHAIRMAN TORGERSON said he thought harbors was a good one.                                                                      
                                                                                                                                
MR. WHITE  agreed and said  they have figures  on how many  slips in                                                            
each  harbor  on an  average  are  occupied  by  commercial  fishing                                                            
vessels.  If  you  take  the  cost  of  the  harbor  and  take  that                                                            
percentage,  you can  assume  that portion  of the  harbor  expenses                                                            
supports the industry.                                                                                                          
                                                                                                                                
CHAIRMAN TORGERSON  asked if they  are deducting federal  funds from                                                            
these figures.                                                                                                                  
                                                                                                                                
MR. WHITE answered that they are including all funds.                                                                           
                                                                                                                                
MR. BRAD PIERCE, Economist,  said they are using total funds and all                                                            
money that's appropriated by the legislature.                                                                                   
                                                                                                                                
SENATOR HALFORD  pointed out that the core money is  not run through                                                            
the state budget.                                                                                                               
                                                                                                                                
SENATOR ELTON  said, "It's an interesting proposition  we have here.                                                            
If we spent more money  to fix up our harbors and ports, we'd have a                                                            
better defense in court."                                                                                                       
                                                                                                                                
CHAIRMAN  TORGERSON  asked  if they  are  recommending  any  statute                                                            
changes at this time.                                                                                                           
                                                                                                                                
MR. WHITE answered  that he thought  an appropriate change  would be                                                            
to amend the statute  that provides the three to one  ratio, because                                                            
the Supreme  Court has said it's a  dollar amount that's  based upon                                                            
the formula  and the amount  varies from year  to year. He  said the                                                            
formula is not  being challenged at this time and  flows from a U.S.                                                            
Supreme Court decision.                                                                                                         
                                                                                                                                
CHAIRMAN TORGERSON asked if we are using the proper formula now.                                                                
                                                                                                                                
MR. WHITE  answered  that the  three to  one puts the  state in  the                                                            
position  of  having  to  do refunds  based  upon  the  factors  the                                                            
Superior Court gave them which varies from year to year.                                                                        
                                                                                                                                
CHAIRMAN  TORGERSON  asked if  it would  have to  be adjusted  every                                                            
year.                                                                                                                           
                                                                                                                                
MR.  WHITE  said he  didn't  think  it would  have  to be  a  yearly                                                            
adjustment if regulation could set the fees for a few years.                                                                    
                                                                                                                                
SENATOR  LINCOLN  asked  if he  was  suggesting  there should  be  a                                                            
specific amount  or can they say "shall not exceed  a blank amount."                                                            
                                                                                                                                
MR. WHITE recommended  that Limited Entry and ADF&G  can charge non-                                                            
residents an  additional amount or  surcharge to the maximum  extent                                                            
established  by law and give the agencies  the regulatory  authority                                                            
to work the  formula on a regular  basis and add that amount  to the                                                            
fees and license schedules.                                                                                                     
                                                                                                                                
SENATOR HALFORD  asked which  court changed  the denominator  in the                                                            
formula from Alaska fishermen to Alaska population.                                                                             
                                                                                                                                
MR. WHITE answered the Alaska Supreme Court in 1996.                                                                            
                                                                                                                                
SENATOR  HALFORD  said  he  didn't   think  that  was  a  reasonable                                                            
interpretation.                                                                                                                 
                                                                                                                                
MR.  WHITE responded  that  when they  used  just fishermen  as  the                                                            
divisor, the state  won hands down, but when the Supreme  court said                                                            
to use the state's entire population, that reduces the figure.                                                                  
                                                                                                                                
SENATOR  HALFORD asked  if anything  could  be done  to rehear  that                                                            
question with new findings at the Supreme Court level.                                                                          
                                                                                                                                
MR. WHITE answered  that the next time this case goes  to the Alaska                                                            
Supreme Court,  particularly with the dollar figure  attached to it,                                                            
and they look  at what the actual  refunds are going to be  and that                                                            
compared  to other  states  we have  a  low differential,  they  may                                                            
reexamine  the whole premise.  Their 1996  rationale was tight  that                                                            
that should be the case.                                                                                                        
                                                                                                                                
SENATOR HALFORD said he  thought it was pretty unreasonable to think                                                            
that a one-year or one  month old child gets the same benefit out of                                                            
fishery management as a full time commercial fisherman.                                                                         
                                                                                                                                
SENATOR ELTON said he was  bothered that this logic could be applied                                                            
to  a lot  of different  situations  like  big  game tags  or  sport                                                            
fishing licenses. He asked if we are vulnerable elsewhere.                                                                      
                                                                                                                                
MR.  WHITE  answered  that we  aren't  vulnerable  in  licenses  and                                                            
permits  and management  practices  that involve  sport hunting  and                                                            
sport fishing,  because the  Privileges and  Immunities Clause  only                                                            
applies where  you have a fundamental  constitutional right  and the                                                            
Courts  have said  that  applies in  this case  with  a vocation  at                                                            
stake.                                                                                                                          
                                                                                                                                
SENATOR  ELTON  asked  if  this  could  apply  to  commercial  truck                                                            
licenses that are crossing the border.                                                                                          
                                                                                                                                
MR. WHITE answered yes  and it might also apply to guiding licenses.                                                            
                                                                                                                                
CHAIRMAN TORGERSON asked  if another action would have to be brought                                                            
to broaden the issue further.                                                                                                   
                                                                                                                                
MR. WHITE answered yes.                                                                                                         
                                                                                                                                
SENATOR HALFORD  noted that, "It's  interesting that a non-resident                                                             
guide is required  to buy a hunting  license to be able to  guide. A                                                            
hunting  license has an  unacceptable differential  while the  guide                                                            
license doesn't.  But you have to have both licenses  to operate. We                                                            
lost years  ago not  allowing non-residents  at  all. So we've  lost                                                            
piece by piece by piece on that."                                                                                               
                                                                                                                                
CHAIRMAN TORGERSON thanked  them for joining the committee today and                                                            
said they would watch the situation closely.                                                                                    
                                                                                                                                
                      HJR  6-ROADLESS POLICY                                                                                
                                                                                                                                
CHAIRMAN TORGERSON announced HJR 6 to be up for consideration.                                                                  
                                                                                                                                
Number 1700                                                                                                                     
                                                                                                                                
REPRESENTATIVE  PEGGY  WILSON,  sponsor,  said  HJR  6  opposes  the                                                            
inclusion of  Alaska's Tongass and  Chugach National Forests  in the                                                            
Roadless  Policy  and wants  to overturn  it.  The Tongass  and  the                                                            
Chugach Land  Management Plans have  cost many millions of  dollars.                                                            
The Tongass Land  Management Plan (TLMP) has already  been in effect                                                            
for over  11 years  costing  $13 million  and countless  hours.  The                                                            
Chugach took 3 years. They  were led to believe the national forests                                                            
in Alaska wouldn't be included in this program.                                                                                 
                                                                                                                                
MS. RACHEL MORELAND,  Alaska Forest Association, said  they strongly                                                            
supported HJR 6.                                                                                                                
                                                                                                                                
MR. DICK COOSE,  Ketchikan resident, said he has lived  in Southeast                                                            
Alaska for  20 years and  has hunted and fished  on the Tongass  and                                                            
the roads and  clear cuts are very  useful for those activities.  He                                                            
is retired  from the Forest  Service after  34 years of service.  He                                                            
assured  them   that  the  Tongass  was  not  as   bad  off  as  the                                                            
preservationists put it.                                                                                                        
                                                                                                                                
MR. JOE  SEBASTIAN, Prince  of Wales Island,  said that is  the most                                                            
heavily,  densely  roaded  space   anywhere  in  Alaska  outside  of                                                            
downtown Anchorage.  He strongly supported  the Roadless  Policy and                                                            
the inclusion of the Tongass  and the Chugach in it. He also defends                                                            
the concepts  of the  Tongass Land  Management  Plan. "The  Roadless                                                            
Policy  embarks  on  a  new  era  and  a  new  moral  consciousness                                                             
concerning natural tracts  of land still left to us and calls a halt                                                            
to industrial exploitation of nature."                                                                                          
                                                                                                                                
MS.  CORRIE  BOSMAN,   Sitka,  opposed  HJR  6  and  supported   the                                                            
application  of the Roadless Policy  to the Tongass and the  Chugach                                                            
National Forests.  She didn't think  the legislature understood  the                                                            
policy after speaking  with Representative Wilson  who, she thought,                                                            
was very misinformed.  She thought the policy was  a complete ban on                                                            
any new  road construction  and that's not  true. "This policy  only                                                            
applies to areas  that are currently inventoried as  roadless. There                                                            
will still be road construction  permitted outside of those areas in                                                            
both the  Tongass and the  Chugach." She said  that people  in Sitka                                                            
and other communities  in southeast  Alaska who participated  in the                                                            
Management  Plan  process overwhelmingly   showed support  for  this                                                            
application  to the Tongass.  She said,  "I am  appalled at  the way                                                            
both  Governor Knowles  and  the Forest  Service  has been  handling                                                            
this. This  was lawfully signed into  law. It has been disregarded.                                                             
These  are federal  lands.  They need  to be  managed  on behalf  of                                                            
people here in Alaska,  but also all the other people throughout the                                                            
nation that these lands belong to."                                                                                             
                                                                                                                                
MR. DON MUELLER, Manager,  Old Harbor Books, Sitka, said he strongly                                                            
supported  including  Alaska in  the  National Roadless  Policy.  He                                                            
thought  it  was wise  for  the  long-term  economics  of  Southeast                                                            
Alaska.                                                                                                                         
                                                                                                                                
Number 2400                                                                                                                     
                                                                                                                                
MR. MARK RORICK,  Sierra Club, said he lived in Juneau  for 30 years                                                            
and didn't think he could  change their minds within this forum, but                                                            
he said there  had been much misinformation about  the Roadless Area                                                            
Conservation  Rule. He  gave an  example of  the Cholmondeley  [east                                                            
Prince of Wales Island]  timber sale, a 35 million board feet timber                                                            
sale  in the Mackenzie  roadless  area  on Prince  of Wales  Island.                                                            
Since the EIS  came out before the rule, the sale  went forward. "It                                                            
targets the best low elevation,  high volume, old growth stands. The                                                            
sale  units followed  stream  valleys  up three  of  the areas  most                                                            
productive water  sheds and constructs 23 miles of  road and crosses                                                            
the stream 63  times. Many of the road segments are  steep and prone                                                            
to land  slides. The  drinking water  supplies of  the residents  of                                                            
Sunny Cove, Clover Bay,  and Saltree Cove are jeopardized. Two lodge                                                            
businesses  that contribute  more than  $2 million  per year  to the                                                            
Ketchikan economy are being put at risk."                                                                                       
                                                                                                                                
TAPE 10, SIDE B                                                                                                               
                                                                                                                              
MR. RORICK  said, "With this  sale, the Forest  Service has  ignored                                                            
the recommendations of  the interagency biologists when establishing                                                            
the old  growth reserves  called for  by the  forest plan[TLMP]  and                                                            
opted for getting  the maximum ASQ  out at the expense of  the areas                                                            
wildlife."                                                                                                                      
                                                                                                                                
MR. JAN KONIGSBERG,  Alaska Salmonid  Biodiversity Program  of Trout                                                            
Unlimited,  opposed HJR 6.  He said that  Trout Unlimited  supported                                                            
the roadless  conservation policy.  He didn't want to talk  them out                                                            
of  the  current  resolution  so  much  as  to  oppose  its  current                                                            
language. He suggested  it be amended in favor of  some balance with                                                            
respect  to  the system  that  is  already roaded  in  the  National                                                            
Forest, particularly in the Tongass.                                                                                            
                                                                                                                                
MR. KONIGSBERG said he  thought it was the state's responsibility in                                                            
terms of  salmon production  to ensure there  is good fish  habitat.                                                            
There has been more than  20 years of recognition in the Tongass, in                                                            
particular, that there  is a fish passage problem with the roads and                                                            
culverts. After more than  40 years of industrial logging, there has                                                            
been  some reduction  in  fish  production.  That should  really  be                                                            
addressed first.  "Support of litigation  for new roads seems  to me                                                            
to be a bit one-sided  unless there is an equal demand  to first fix                                                            
the old roads. It makes good sense. It's good housekeeping."                                                                    
                                                                                                                                
MR. KONIGSBERG had draft  language he had presented to the committee                                                            
on this issue.                                                                                                                  
                                                                                                                                
CHAIRMAN TORGERSON thanked  him, but said that he is not in favor of                                                            
amending  this resolution  to talk about  something other than  what                                                            
it was  designed for. He  would support a  resolution that  told the                                                            
feds "to  clean up their  act on areas that  you have identified  of                                                            
culverts not letting the  fish through and other things. That's just                                                            
good sound business practice."                                                                                                  
                                                                                                                                
MR. PAT  VEESART, Executive  Director, Sitka  Conservation  Society,                                                            
said he was very involved  in organizing to build public support for                                                            
the  Roadless Policy.  He  has had  the  opportunity  of talking  to                                                            
hundreds  and hundreds  of  Alaskans and  thousands  of visitors  to                                                            
Alaska about  the Roadless Policy  and was overwhelmed by  the level                                                            
of public  support for it.  The committee is  being asked to  pass a                                                            
resolution  that is against  the public will  he said. The  Roadless                                                            
Administrative  Rulemaking  process was  a highly  publicized,  very                                                            
public process  that was open to everybody. It was  nation-wide with                                                            
617 hearings  with 39,000  Americans attending  those hearings;  1.6                                                            
million Americans  commented on it.  Over a million of those  people                                                            
favored the  rule and favored inclusion  of the Tongass.  It was the                                                            
largest public process in the USDA history.                                                                                     
                                                                                                                                
After 17  hearings in  Alaska, 62  percent of  the people who  spoke                                                            
favored the  policy, 75 percent in  Southeast Alaska's four  largest                                                            
cities favored  the policy. Local forest planning  is always subject                                                            
to change in the  national policy that is brought  about by a change                                                            
in public  attitude  about  how our  national forests  are  managed.                                                            
"This  process was  exemplary  and  it was  open to  everyone…It  is                                                            
exactly how policy should be made in a democracy."                                                                              
                                                                                                                                
MS. KATYA KIRSCH, Executive  Director, Southeast Alaska Conservation                                                            
Council (SEACC),  said she has lived in the region  for 25 years and                                                            
has seen a lot of clear  cutting. In the last decade, she has seen a                                                            
much  more diverse  economy,  including a  huge growth  in  tourism,                                                            
recreation  industries, high  businesses, fishing,  and a lot  more.                                                            
She  said, "It's  time  to stop  looking  backward to  recreate  the                                                            
economy that chews our  landscape for the gain of just one industry.                                                            
Our  region's  largest  industries   depend  on  a  healthy  Tongass                                                            
National Forest.  While employment  in the timber industry  has been                                                            
declining,  there  have  been  increases  in  tourism,  recreation,                                                             
construction,  health care,  and other  parts  of the economy….This                                                             
decision is not about closing  down any of the nearly 5,000 miles of                                                            
road  that currently  exist on  the Tongass.  It  is about  managing                                                            
those valuable  wild lands  for multiple use  that are now  roadless                                                            
for purposes such as hunting,  fishing, subsistence, recreation, and                                                            
tourism."                                                                                                                       
                                                                                                                                
MS. KIRSCH commented that  50 percent of the timber from the Chumley                                                            
sale is going out as round  logs, red and yellow cedar, exports. The                                                            
Finger  Mountain  timber  sale which  is  in  a roadless  area  near                                                            
Tenakee is  abounding in  spawning salmon,  but the reason  for that                                                            
sale  is to  target  on round  export  of cedar.  She  asked who  is                                                            
benefiting?                                                                                                                     
                                                                                                                                
She said  according  to the Tongass  Road Conditions  Survey  Report                                                            
released in  June 2000, two thirds  of the culverts crossing  salmon                                                            
streams provided inadequate  fish passage and eighty five percent of                                                            
the  culverts  crossing  trout  streams  provided   inadequate  fish                                                            
passage. "Out  of an estimated $20 million backlog  to fix more than                                                            
700 of  these  culverts that  are blocking  safe  fish passage,  the                                                            
Forest Service has been  budgeting only about a half million dollars                                                            
a year.  At this rate  it's going  to take 40  years to fix  current                                                            
fish passage problems on the Tongass."                                                                                          
                                                                                                                                
MS. KIRSCH said, "The Alaska  Legislature should call for sufficient                                                            
federal funding  to fix these culverts providing jobs  for Southeast                                                            
Alaskans  and safe  passage  for wild  salmon  so important  to  our                                                            
commercial and sports fishermen."                                                                                               
                                                                                                                                
MS. KIRSCH  pointed out several errors  in the "Whereas"  section of                                                            
HJR 6.  "The resolution  claims  that the forest  products  industry                                                            
contributes significant  revenue to the local communities  to the 25                                                            
percent revenue  sharing provision  in federal  law. However,  a new                                                            
federal law  was passed  last year that  guarantees stable  payments                                                            
for roads  and schools to  local forest communities.  Under  the new                                                            
statute,   local  governments   will  receive   an  annual   payment                                                            
equivalent  to the average payment  of their three highest  years of                                                            
timber  receipts over  the past 15  years. Any  reduction in  timber                                                            
receipts  on  the  Tongass  will not  reduce  the  amount  of  money                                                            
Southeast Alaska's communities receive for roads and schools."                                                                  
                                                                                                                                
MS.  SUE  SCHRADER,  Alaska  Conservation   Voters,  said  the  vast                                                            
majority  of her  members  are frequent  users  of the  Tongass  and                                                            
Chugach   National  Forests   for  subsistence,   recreational   and                                                            
commercial  activities.  They have  supported  efforts  by the  U.S.                                                            
Forest Service  to protect the roadless areas in these  forests. She                                                            
listed  the  communities  where  there  were  hearings:   Anchorage,                                                            
Girdwood, Seward, Cordova,  Sitka, Ketchikan, Juneau, Yakutat, Kake,                                                            
Tenakee,  Hoonah, Petersberg,  Thorn Bay,  Craig, Angoon,  Gustavus,                                                            
and  Wrangell. Over  1,000  people attended  those  hearings and  62                                                            
percent  testified  in support  of  including  the Chugach  and  the                                                            
Tongass.                                                                                                                        
                                                                                                                                
MS. SCHRADER  said you  could see  proof of why  so many people  are                                                            
concerned about building  roads when looking at Washington state and                                                            
the collateral  damage  that roads  in their  national forests  have                                                            
caused - landslides,  damage to salmon  streams, problems  with game                                                            
poaching, and  increased risks of human caused fires.  She concluded                                                            
 by  asking the  committee  to reconsider  her information  and  not                                                            
support the resolution.                                                                                                         
                                                                                                                                
MR. DARRELL THOMAS, Aide  to Senator Taylor, supported HJR 6 saying,                                                            
"The Southeast  timber industry has suffered blow  after blow in the                                                            
past few  years dealt by  the federal government.  These blows  were                                                            
fatal to two pulp mills,  both major employers of Southeast Alaska."                                                            
He said that  there are only a couple  of saw mills operating  today                                                            
and  the loss  of jobs  has  resulted in  severe  negative  economic                                                            
impacts   to  much   of  Southeast   Alaska.   "The  Roadless   Area                                                            
Conservation Rule  would deliver the final blow to  an entire way of                                                            
life for thousands of people.  Without roads, they have no access to                                                            
schools, stores, or even medical attention."                                                                                    
                                                                                                                                
CHAIRMAN  TORGERSON  said he  had put  together amendment  #1  which                                                            
recognizes the  President has taken an action to delay  the Roadless                                                            
Policy for 60 days.                                                                                                             
                                                                                                                                
SENATOR HALFORD moved to  insert amendment #1 on page 3, line 20. It                                                            
reads,  "and WHEREAS  the  Alaska State  Legislature  expresses  its                                                            
appreciation  of  the recent  temporary  delay for  60  days of  the                                                            
Roadless Area Conservation Rule;".                                                                                              
                                                                                                                                
SENATOR ELTON  asked if the sponsor of the resolution  supported the                                                            
resolution.  Representative  Wilson  said  that  she didn't  have  a                                                            
problem with it.                                                                                                                
                                                                                                                                
There were no objections and the amendment was adopted.                                                                         
                                                                                                                                
SENATOR ELTON  moved amendment #2  on page 1, line 8 to delete  "the                                                            
25 percent".  The reason  is that last October  Congress passed  and                                                            
the President  signed an alternative way to the 25  percent process.                                                            
The alternative  ways allow  communities in  the Tongass to  average                                                            
the  high three  of the  last  15 years  receipts.  He thought  most                                                            
communities  in Southeast  Alaska would use  that method because  it                                                            
would bring in a lot more  money to them. Representative Wilson said                                                            
she didn't  object to the motion.  There were no further  objections                                                            
and the amendment was adopted.                                                                                                  
                                                                                                                                
SENATOR  HALFORD  moved to  pass SCS  CSHJR  6 from  committee  with                                                            
individual recommendations.                                                                                                     
                                                                                                                                
SENATOR ELTON objected  to say that he is very conflicted about this                                                            
resolution. He  does not read the provisions of ANILCA  the same way                                                            
the sponsor  does. He said in 1976  as editor of the Juneau  Empire,                                                            
he began writing  articles to encourage  the process of planning  in                                                            
the Tongass  National Forest. Most  of the decisions that  were made                                                            
were  by politics  and not  necessarily  by good  management  policy                                                            
which bothered  him. He said we had  come a long way since  then. If                                                            
he had  written a way of  handling federal  management decisions  in                                                            
the  Tongass, he  would  have ended  up  with a  process  remarkably                                                            
similar to  the TLMP process. He feels  the same now that  150 - 200                                                            
million  board feet to  be cut per  year was a  good number  for the                                                            
Tongass -  a significant  drop from the existing  cut. They  came up                                                            
with  "a  process  that  was  a  wrenching  divisive   process  that                                                            
eventually  led to the TLMP process  and through various  amendments                                                            
to the  TLMP process,  to a cut  figure in the  neighborhood  of 150                                                            
million board  feet, right  where I wanted  to be 10 years  ago." He                                                            
said he is  bothered by a process  that leads to an executive  order                                                            
by any president that leads  us to something that abrogates the TLMP                                                            
process that  was very painful. He  didn't know how he was  going to                                                            
vote on this resolution when it reached the floor.                                                                              
                                                                                                                                
SENATOR ELTON  told Chairman Torgerson  that he appreciated  the way                                                            
he had run the meeting  on this issue that has divided people rather                                                            
than bringing them together.                                                                                                    
                                                                                                                                
There was  no further discussion  or objection  and the bill  passed                                                            
out of committee.                                                                                                               
                                                                                                                                
CHAIRMAN TORGERSON adjourned the meeting at 5:00 p.m.                                                                           
                                                                                                                                

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