ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
April 26, 2021
3:32 p.m.
MEMBERS PRESENT
Senator Joshua Revak, Chair
Senator Peter Micciche, Vice Chair
Senator Click Bishop
Senator Natasha von Imhof
Senator Jesse Kiehl
Senator Scott Kawasaki
MEMBERS ABSENT
Senator Gary Stevens
COMMITTEE CALENDAR
SENATE BILL NO. 110
"An Act relating to liability of an electric utility for contact
between vegetation and the utility's facilities; and relating to
vegetation management plans."
- HEARD & HELD
SENATE BILL NO. 125
"An Act relating to the transferability of hunts awarded by
drawing; and providing for an effective date."
- MOVED CSSB 125(RES) OUT OF COMMITTEE
SENATE BILL NO. 113
"An Act extending the fishery resource landing tax credit for
certain taxpayers that harvest fishery resources under the
provisions of a community development quota; providing for an
effective date by amending the effective date of sec. 36, ch.
61, SLA 2014; and providing for an effective date."
- MOVED SB 113 OUT OF COMMITTEE
SENATE BILL NO. 59
"An Act relating to salt water sport fishing operators and salt
water sport fishing guides; and providing for an effective
date."
- HEARD & HELD
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 79(FIN)
"An Act relating to sport fishing operators and sport fishing
guides; requiring the Department of Fish and Game to prepare and
submit a report; and providing for an effective date."
- BILL HEARING CANCELED
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 80(FSH)
"An Act relating to sport fishing operators and sport fishing
guides; requiring the Department of Fish and Game to prepare and
submit a report; and providing for an effective date."
- BILL HEARING POSTPONED
PREVIOUS COMMITTEE ACTION
BILL: SB 110
SHORT TITLE: ELECTRIC UTILITY LIABILITY
SPONSOR(s): SENATOR(s) MICCICHE
03/19/21 (S) READ THE FIRST TIME - REFERRALS
03/19/21 (S) RES
04/26/21 (S) RES AT 3:30 PM BUTROVICH 205
BILL: SB 125
SHORT TITLE: HUNTING PERMITS: TRANSFERABILITY
SPONSOR(s): SENATOR(s) VON IMHOF
04/16/21 (S) READ THE FIRST TIME - REFERRALS
04/16/21 (S) RES
04/26/21 (S) RES AT 3:30 PM BUTROVICH 205
BILL: SB 113
SHORT TITLE: EXTEND FISHERY RESOURCE LAND. TAX CREDIT
SPONSOR(s): SENATOR(s) OLSON
03/29/21 (S) READ THE FIRST TIME - REFERRALS
03/29/21 (S) RES, FIN
04/26/21 (S) RES AT 3:30 PM BUTROVICH 205
BILL: SB 59
SHORT TITLE: SALTWATER SPORTFISHING OPERATORS/GUIDES
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/29/21 (S) READ THE FIRST TIME - REFERRALS
01/29/21 (S) RES, FIN
04/26/21 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
EMMIE JACKSON, Staff
Senator Peter Micciche
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 110 on behalf of the sponsor.
CRYSTAL ENKVIST, Executive Director
Alaska Power Association (APA)
Anchorage, Alaska
POSITION STATEMENT: Testified on SB 110 by invitation.
TRAVIS MILLION, Chief Executive Officer
Copper Valley Electric Association
Glennallen, Alaska
POSITION STATEMENT: Testified on SB 110 by invitation.
JOHN BURNS, President and Chief Executive Officer
Golden Valley Electric Association
Fairbanks, Alaska
POSITION STATEMENT: Testified on SB 110 by invitation.
JIM BUTLER, Counsel
Homer Electric Association
Homer, Alaska
POSITION STATEMENT: Testified on SB 110 by invitation.
LYN ELLIOT Assistant Vice President
State Government Relations
American Property Casualty Insurance Association
Denver, Colorado
POSITION STATEMENT: Raised concern about SB 110.
ANDY LEMAN, General Counsel
Alaska Power Association
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to SB 110.
INTIMAYO HARBISON, Staff
Senator Natasha von Imhof
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 125 on behalf of the sponsor.
NATALIE WEBER, Program Coordinator II
Division of Wildlife Conservation
Alaska Department of Fish and Game (ADF&G)
Palmer, Alaska
POSITION STATEMENT: Answered questions related to SB 125.
RACHEL HANKE, Legislative Liaison
Alaska Department of Fish and Game (ADF&G)
Juneau, Alaska
POSITION STATEMENT: Answered questions related to SB 125.
WADE BOWERSON, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 125.
DANIELLE CAMPOAMORE, representing self
Brooklyn, New York
POSITION STATEMENT: Testified in support of SB 125.
AARON TRENT, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 125.
KELLY TRENT, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 125.
DOUGLAS VINCENT-LANG, Commissioner
Alaska Department of Fish and Game
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to SB 125.
JEFF TRENT, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 125.
MARK RICHARDS, Executive Director
Resident Hunters of Alaska
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 125.
TERESA CAMPOAMORE, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 125.
SENATOR DONNY OLSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 113.
KEN TRUITT, Staff
Senator Donny Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided an overview of SB 113.
NORM VAN VACTOR, President and Chief Executive Officer
Bristol Bay Economic Development Corporation
Dillingham, Alaska
POSITION STATEMENT: Testified in support of SB 113.
JENNIFER WILLIAMS
Government Affairs
Yukon Delta Fisheries Development Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 113.
HEATHER MCCARTY, representative
Central Bearing Sea Fishermen's Association
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 113.
ANGEL DROBNICA, representative
Aleutian Pribilof Island Community Development Association
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 113.
DOUGLAS VINCENT-LANG, Commissioner
Alaska Department of Fish and Game
Anchorage, Alaska
POSITION STATEMENT: Introduced SB 59 on behalf of the
administration.
RACHEL HANKE, Legislative Liaison
Alaska Department of Fish and Game
Anchorage, Alaska
POSITION STATEMENT: Presented the sectional analysis for SB 59.
ACTION NARRATIVE
3:32:57 PM
CHAIR JOSHUA REVAK called the Senate Resources Standing
Committee meeting to order at 3:32 p.m. Present at the call to
order were Senators von Imhof, Kiehl, Micciche, and Chair Revak.
Senator Kawasaki arrived soon thereafter and Senator Bishop
arrived during the course of the meeting.
He reviewed the agenda.
SB 110-ELECTRIC UTILITY LIABILITY
3:34:04 PM
CHAIR REVAK announced the consideration of SENATE BILL NO. 110
"An Act relating to liability of an electric utility for contact
between vegetation and the utility's facilities; and relating to
vegetation management plans."
3:34:26 PM
SENATOR PETER MICCICHE, speaking as sponsor of SB 110, stated he
was carrying the bill by request. It is about an electric
utility's liability when something occurs that is outside its
control. He cited a forest fire as an example. He deferred to
Ms. Jackson for further introduction.
3:36:21 PM
SENATOR KAWASAKI joined the committee meeting.
3:36:34 PM
EMMIE JACKSON, Staff, Senator Peter Micciche, Alaska State
Legislature, Juneau, Alaska, introduced SB 110 reading the
following sponsor statement into the record:
Senate Bill 110 will protect Alaska's electric utility
ratepayers from increased rates by clarifying in
statute when electric utilities are and are not
legally liable for damages caused by contact between
vegetation and electric infrastructure.
Under the provisions in SB 110, a utility would not be
liable for damages caused by vegetation outside its
easement contacting electric facilities. For
vegetation inside an easement, a utility would be
liable for damages if the utility did not adhere to
its vegetation management plan.
SB 110 does not eliminate all liability from electric
utilities. Liability would still apply if a utility
was found to have failed to follow its own vegetation
management plan or if a utility causes vegetation
outside the easement to contact electric facilities.
The legislation better defines in statute when damages
are applicable, setting clear expectations that
utilities will implement and follow vegetation
management plans or face liability.
SB 110 protects electric utilities from being held
liable for the cost of damages caused by vegetation
that they either cannot control or were not permitted
to maintain. This also protects Alaska's electric
ratepayers from having to bear the brunt of those
costs through their rates, in a State where electric
utility service costs are already high
3:38:22 PM
CHAIR REVAK turned to invited testimony.
3:38:48 PM
CRYSTAL ENKVIST, Executive Director, Alaska Power Association
(APA), Anchorage, Alaska, stated APA is a statewide association
that represents electric utilities in Alaska. Member companies
provide power to more than 0.5 million Alaskans from Utqiagvik
to Unalaska, through the Interior and Southcentral, and down the
Inside Passage. On behalf of APA, she stated strong support for
SB 110, which will protect Alaska ratepayers from increased
costs. It provides clear rules about when utilities are liable
for damage caused by vegetation coming too close to electric
facilities.
MS. ENKVIST reported that utility lines are most often located
in easements or rights of way across private or public property.
They are wide enough to accommodate the lines and allow access
for maintenance and repairs, generally 15-20 feet. She opined
that wider easements would burden property owners and restrict
other uses of that property. She explained that utilities clear
vegetation inside these corridors to minimize contact with the
electric facilities. She pointed out that vegetation outside the
corridor can grow high enough to contact an electric utility's
facility, but if the utility cuts this tree or other vegetation,
it could be liable for treble damages to the property owner. She
described the vegetation outside the easement or right of way as
an uncontrollable risk to both the electric utility and its
ratepayers.
MS. ENKVIST said SB 110 clarifies that utilities are only liable
for vegetation outside the utility corridor if the utility
itself causes the vegetation to hit the power lines. They
control vegetation inside the utility corridor by following
their comprehensive vegetation management plan. Each is tailored
to the utility's unique circumstances. SB 110 also clarifies
that utilities are only liable for damages from vegetation
inside the easement or right of way contacting their facilities
if they do not have a vegetation management plan or do not
follow the plan. She restated the point to emphasize that SB 110
does not eliminate liability. She concluded, "As factors that
cause wild fires increase - hotter dryer summers, invasive
insects, and longer growing seasons, it is imperative that SB
110 pass to protect Alaska electric utility ratepayers."
3:43:02 PM
TRAVIS MILLION, Chief Executive Officer, Copper Valley Electric
Association, Glennallen, Alaska, delivered a presentation on
vegetation management and utility rights of way. He explained
that it is a utility's legal obligation to manage the vegetation
within the bounds of the utility right of way. Responsible
vegetation management helps to ensure the safety of the public.
A tree that comes in contact with a line may cause a wildfire or
sag the line to the ground in wintertime and become a hazard for
those driving on the rights of way on snow machines.
MR. MILLION directed attention to the graph on slide 3 and
explained that the width of the right of way is measured on
either side of the utility pole, and it is utility specific.
Distribution line rights of way are 15 feet on either side of
the center of the pole for three-phase lines and 10 feet on
either side for single-phase lines. The larger transmission
lines typically have a 50 foot right of way on either side of
the center line or pole. He clarified that the utility does not
own the land inside the right of way. Rather, the state,
federal, or private property owner has given the utility an
easement for access to the land. The utility cannot legally go
outside such easements.
3:45:36 PM
MR. MILLION directed attention to slides 4 and 5 that illustrate
the mechanical means typically employed to clear rights of way
in Alaska. These methods include the use of a bucket truck and
telescoping chainsaw that can be used to clear branches of trees
outside the right of way that encroach inside the right of way
and may contact the utility line. Copper Valley and other
utilities also use sky trims or drafts for clearing purposes.
These vehicles have a telescoping arm with a radial arm saw
blade at the end so limb trimming can be done from the ground.
Importantly, the utility easement allows clearing from ground to
sky so limbs inside the easement may be trimmed. Trees growing
outside the ROW cannot be cut down. An additional clearing
method is to use a brush hog to mow and chip all limbs and other
vegetation, which can then be left to cover the ground in the
right of way.
3:47:24 PM
MR. MILLION pointed to the image on the left side of slide 6
that shows a utility right of way that is very green. He said
wildfires are not the primary concern in these situations.
Rather, the risk is from trees outside the right of way and/or
people traveling in the right of way coming in contact with the
lines. He said the picture on the right shows a 100-foot
transmission line ROW that is cleared from ground to sky. All
vegetation in the ROW has been cut, chipped, and is used as
mulch. He directed attention to slide 7 and explained it is an
example of a 30-foot distribution ROW before, during, and after
clearing. He said the final slide shows a typical distribution
line after the vegetation has been cleared ground to sky within
the ROW. He said what is important to note is that any of the
80100-foot trees on either side just outside the ROW could fall
and easily contact the utility line.
3:50:04 PM
MR. MILLION began his prepared testimony. He stated strong
support for SB 110, which would clarify in statute that an
electric utility may not be held liable for property damage,
death, or personal injury that results from contact between
vegetation outside a utility's ROW and the utility
infrastructure. This protects ratepayers, which in Alaska most
often are the member owners of an electric cooperative that
serves a municipality. He emphasized that CVEA has been very
aggressive in the last five years to reestablish and maintain
their ROWs. This is legally and morally the utility's
responsibility, but it can be hard work in areas such as
Southeast and Valdez where the vegetation grows as fast as it is
cleared.
MR. MILION reported that CVEA has developed a comprehensive
vegetation management plan that describes the width of ROW that
can be cleared for both distribution and transmission lines, the
mechanical and hand methods to clear the ROW, and the rotation
and frequency for clearing feeders in any given year. He
reported that CVEA has reestablished nearly the entire length of
its 106-mile transmission line since 2016, despite it running
through some of the roughest terrain in Alaska. He opined that
if the utility is doing due diligence to follow its vegetation
management plan, it does not seem right to hold it responsible
if a tree outside the ROW were to come into contact with the
lines and cause a fire. The utility does not have the legal
right to remove such trees.
MR. MILION pointed out that remotely isolated utilities face the
risk of having to shut down the power system if a lawsuit were
to bankrupt the utility. In these situations, the member owners
have the most to lose, not the stakeholders like in a for-profit
electric utility. He maintained that without SB 110, there are
few cost-effective options for a utility to mitigate these risks
without passing the burden on to the member owners. He noted the
increasing risk of wildfires and urged the committee to pass SB
110 to protect Alaska electric utilities and their member
owners.
3:53:19 PM
SENATOR KAWASAKI asked if CVEA works with property owners to
mitigate the risk from leaning trees that are outside the ROW.
MR. MILLION answered CVEA has notified member owners that the
utility will clear dangerous trees free of charge that the
property owner has identified. Further, if the utility is in the
area and sees a tree that may endanger the line, they will work
with the property owner to remove the tree.
3:54:23 PM
JOHN BURNS, President and Chief Executive Officer, Golden Valley
Electric Association, Fairbanks, Alaska, stated GVEA is a not-
for-profit electric cooperative serving Interior Alaska
communities from Cantwell to Delta Junction, including Fairbanks
and North Pole. This 5,973 square mile service area has about
2,600 miles of right of way easement that the utility is
responsible for clearing. This is done on a 7-year rotating
cycle, so about 370 miles is cleared every season, consistent
with the established vegetation management plan. He reported
that GVEA spends about $3 million every year on these clearing
efforts.
MR. BURNS described SB 110 as vital to protect the interests of
all Alaska ratepayers from increased costs associated with
wildfires and other damages caused by vegetation outside the ROW
easements, and over which GVEA and other utilities have no
control. He said GVEA has some of the highest electric rates in
the Railbelt, and lawsuits for damages caused by vegetation
outside the ROW and outside GVEA's right to control would
further raise costs for ratepayers. He reiterated that SB 110 is
important to protect all electric ratepayers from bearing
additional costs resulting from lawsuits related to things
outside the utility's control. He confirmed previous testimony
that a utility is not allowed to enter property outside the
legal ROW without the consent of the property owner. Doing so
exposes the utility to liability for trespass. Reason dictates
that a utility should not be liable for that over which it does
not have control he said. It is neither fair nor just to impose
liability on an electric utility for damage caused by vegetation
outside the ROW that falls into or otherwise makes contact with
the utility infrastructure.
MR. BURNS said SB 110 clarifies in statute that electric
utilities would not be liable for damages caused by vegetation
outside the easement that contacts the utility facilities.
Inside the easement, the electric utility would only be liable
if it had not followed its established vegetation management
plan. Importantly, he said SB 110 does not eliminate liability
for electric utilities; it simply clarifies when liability does
and does not apply when damage arises from vegetation contacting
electric infrastructure. He described increased maintenance
challenges attributed to climate change and urged the committee
to pass SB 110 and provide electric utilities with a modicum of
protection.
3:59:58 PM
JIM BUTLER, Counsel, Homer Electric Association (HEA), Homer,
Alaska, said the previous testimony did a good job of outlining
the rational and importance of SB 110. He related that HEA is a
nonprofit electric utility that is governed by an elected board
that is held accountable by the paying members. HEA's service
area covers nearly 32,000 miles from east of Sterling, north to
Nikiski, and down to and across Kachemak Bay. The utility
represents 24,338 member owners.
MR. BUTLER reported that HEA has just over 2,700 miles of
energized line; there are about 1,400 miles of overhead
distribution line, 1,000 miles of underground distribution line,
and 300 miles of transmission line. In general, homeowners tend
to own the land under distribution lines and the state or
federal government owns the land below transmission lines.
MR. BUTLER said HEA has had a right of way management plan for
many years, and they value the input of landowners when clearing
the more than 1,500 miles of ROW. This maintenance is important
to prevent damage to the electric facilities and to ensure that
work crews are able to quickly and safely access lines that may
be down due to seasonal whether events or other causes and
restore power to the consumers.
4:02:45 PM
SENATOR BISHOP joined the committee meeting.
MR. BUTLER advised that HEA notifies member owners when they are
clearing the ROW and they have found that with the infestation
of spruce bark beetles, people are interested in HEA's support
to take down dangerous and dead trees. He clarified that HEA
works collaboratively with the landowners, but is not in the
position to assume the landowner's responsibility of monitoring
and managing hazardous trees on private property. He reported
that HEA spends from $1.2 million to $1.6 million each year to
implement its right of way management plan. The board is briefed
on the areas that will be cleared according to the revolving
plan and they support the expenditure when they approve the
annual budget.
MR. BUTLER echoed previously stated reasons to support SB 110
and added that it provides an incentive for utilities to adopt
best practices and develop ROW vegetation management plans that
are unique to the service area. Hopefully, landowners are also
incentivized to be aware that this is a shared responsibility.
He said it is also important to understand that more than
liability itself, the arguments over liability can cause a
utility to incur significant expense. He emphasized the
importance of clarifying the rules of engagement, incentivizing
best practices, and working with member customers to mitigate
hazards of not only fire but also for those who use rights of
way in the winter.
4:07:23 PM
CHAIR REVAK opened public testimony on SB 110.
4:07:46 PM
LYN ELLIOT, Assistant Vice President of State Government
Relations, American Property Casualty Insurance Association
(APCIA), Denver, Colorado, stated APCIA represents about 50
percent of the property casualty insurance market in Alaska as
well as family, communities, and businesses in the state. She
said APCIA appreciates the importance of having robust policies
on wildfire mitigation practices, but they have a concern with
granting immunity when the state does not have a specified
standard for vegetation management plans. She said APCIA sees a
need for compliance with such plans as a condition for partial
immunity. This will strike a balance that takes into account the
needs of the utilities, the property owners, and the insurers.
SB 110 does not achieve this balance, she said.
4:09:36 PM
CHAIR REVAK found no one else who wished to comment, and closed
public testimony on SB 110.
4:10:04 PM
SENATOR KIEHL mentioned the importance of having a robust
vegetation management plan and expressed interest in learning
what those standards look like. He also asked if homeowner's
insurance generally covers an [electrical] fire that is the
result of a tree falling on the house or if the homeowner would
be uncovered and without the utility to look to.
4:11:11 PM
ANDY LEMAN, General Counsel, Alaska Power Association,
Anchorage, Alaska, offered his understanding that the reason for
having homeowner's insurance is to cover property damage caused
by fires, whether it is vegetation in contact with a power line
or the myriad of things that can lead to a fire.
MS. ELLIOT agreed that insurance policies generally are in place
to protect the homeowner or business owner in the event of loss.
She said one concern with SB 110 is that without an established
standard for a vegetation management plan, the insurers could
lose their subrogation rights. She explained this is the ability
to recover costs on behalf of the homeowner or property owners
who are insured by an insurance company.
SENATOR KIEHL asked if the property owner is liable for damages
from any tree that is rooted on their property
4:13:41 PM
MR. BURNS answered that the property owner whose tree falls on a
neighbor's fence is responsible for that fence. Thus, the
homeowner would typically be responsible for damages from a tree
that falls into the utility line from outside the ROW. The
utilities' concern is being faced with defending against a
situation over which it had no control to begin with. This bill
does not shift responsibility to the property owner because the
property owner already has the responsibility of maintaining
their own property. SB 110 makes it very clear the circumstances
under which a utility would have liability and when it would not
have liability. He said it is a clear demarcation.
4:15:23 PM
SENATOR MICCICHE related the experience of his insurance company
saying the healthy tree on his property that fell during a
windstorm was an act of God. The insurance company said he was
not responsible for the tree but the damage it caused was not
covered.
He offered his view that SB 110 only clarifies what a utility is
responsible for when damage that occurs is beyond the utility's
control. He described this as a matter of fairness and said he
intended to reach out to Ms. Elliot and the other testifiers to
find a solution that fairly protects both property owners and
utilities.
4:18:26 PM
CHAIR REVAK announced he would hold SB 110 in committee for
future consideration.
SB 125-HUNTING PERMITS: TRANSFERABILITY
4:18:38 PM
CHAIR REVAK announced the consideration of SENATE BILL NO. 125
"An Act relating to the transferability of hunts awarded by
drawing; and providing for an effective date."
4:19:07 PM
SENATOR NATASHA VON IMHOF, speaking as sponsor of SB 125,
explained the legislation is in response to a constituent, Chase
Bowerson, who was awarded a 2021 moose tag about a month after
his tragic death. His mother and the executor of the estate
contacted the Alaska Department of Fish and Game (ADF&G) to let
them know of Chase's death and request the tag be transferred to
a proxy to do the hunt in his honor. The request was denied
because current statute does not allow a proxy in this
situation. SB 125 changes that part of the statute. She deferred
further introduction to Mr. Harbison.
4:20:36 PM
INTIMAYO HARBISON, Staff, Senator Natasha von Imhof, Alaska
State Legislature, Juneau, Alaska, read the following sponsor
statement for SB 125 into the record:
Senate Bill 125 would allow a hunting permit awarded
by drawing to be transferred to another qualified
hunter should the original permit holder die before
completing the hunt.
It is the intent of this bill to put an end to the
trauma faced by many families when, after having lost
a family member, they are further denied subsistence
rights which their deceased family member applied for,
paid for, and were awarded.
This bill pertains exclusively to the transfer of draw
hunting permits and would not impact any other
license, tag, or sport fishing vessel registration.
4:21:31 PM
SENATOR KIEHL asked if there was a specific reason that the bill
did not also include registration permits and Tier 1 permits.
MR. HARBISON replied the bill was specifically to address the
issue that draw permit tags may not be transferred to a proxy
from a tag holder who is deceased.
SENATOR VON IMHOF asked Senator Kiehl to restate the question.
SENATOR KIEHL said he wondered if she had thought about the
universe of other situations where someone might pass away
before they complete a hunt for which they had received a tag.
SENATOR VON IMHOF replied this is what ADF&G recommended when
she brought the issue forward. She offered to look into adding
registration permits.
4:23:25 PM
MR. HARBISON noted a department representative was online and
available for questions.
4:23:46 PM
NATALIE WEBER, Program Coordinator II, Division of Wildlife
Conservation, Alaska Department of Fish and Game (ADF&G),
Palmer, Alaska, stated that no other types of permits were
included because the original question was whether the bill only
covered the intent of the drawing permits. The answer to that
question is yes. She noted Ms. Henke may have further
information because she coordinated more closely with the
sponsor's office.
4:24:25 PM
RACHEL HANKE, Legislative Liaison, Alaska Department of Fish and
Game (ADF&G), Juneau, Alaska, stated that the idea initially was
to solve the constituent issue, which was for a drawing permit
only. There was no discussion about including other types of
registration permits. She offered to look into it if that was
the wish of the committee.
4:25:06 PM
CHAIR REVAK opened public testimony on SB 125.
4:25:17 PM
WADE BOWERSON, representing self, Anchorage, Alaska, stated
support for SB 125. He said he wanted to make sure that no other
family had to endure the double trauma his family had to endure.
He said it was unjust to deprive the family of the hunt after
they had lost their brother and son. He understands this has
happened to more than just his family. He related that the bill
focused on a draw tag because those are different than
registering for a hunt.
4:26:46 PM
DANIELLE CAMPOAMORE, representing self, Brooklyn, New York, said
when she heard that her family was not able to hunt the tag by
proxy in her cousin Chase's honor, she began advocating for a
change in statute. She agreed with previous testimony that other
bereaved families have been similarly affected. She urged the
committee to make this simple and commonsense change in the law.
4:30:38 PM
AARON TRENT, representing self, Anchorage, Alaska, stated he was
Chase's older brother, and was calling in support of SB 125. He
opined that passing the bill will impact hundreds to thousands
of Alaskans physically and emotionally. This would have been his
little brother's first big game hunt and he was excited to
become part of the family tradition. Passing SB 125 will honor
his memory and speak volumes for the men and women who put in
the work to ensure fairness and justice. He expressed optimism
that the bill would pass.
4:32:12 PM
KELLY TRENT, representing self, Anchorage, Alaska, said she was
Chase Bowerson's mom. She described her youngest child as a
dynamic, outdoor-loving young man who grew up hunting, fishing,
and camping with his family. She said they always shared the
bounty with family and friends. Most recently the family members
each applied for a 2021 moose tag for the same area in hopes one
would be successful. Chase applied for his tag on December 14.
It was his 26th birthday and he knew it would bring him luck in
getting a tag. Three weeks later, her son was murdered. She
described it as the worst day of her life. A month after that
the results of the drawing were published, and Chase was a
winner. When she was told that the tag could not be transferred
to a family member she said she was stunned. "I couldn't
understand how everything in his estate is ours to handle, but
the one and only thing we can't have is his opportunity to get a
moose."
MS. TRENT said she expects her family will continue to have some
dark days as they continue to deal with their loss. The 2021
moose hunt would have been a way to honor Chase and help the
family heal. If the hunt was successful, the meat would have
helped feed his grandparents, his parents, his siblings, and his
many nieces and nephews. She said she understands that it is too
late for the law to change in time for the fall hunt, but she
would like to know that hers is the last family that this
happens to. She said her son Chase always believed in righting
any wrong and she believes this is something he would have liked
to see made right. It is within the legislature's power to do
so.
4:35:28 PM
CHAIR REVAK asked Commissioner Vincent-Lang whether the
department could issue the tag to the family, or anybody else
who was awarded a tag but died before it was used, if the
committee conceptually amended the bill and made it retroactive.
4:36:02 PM
DOUGLAS VINCENT-LANG, Commissioner, Alaska Department of Fish
and Game, Anchorage, Alaska, answered he was sure the department
could make that happen if the legislature were to pass the bill
with a retroactivity clause.
4:36:35 PM
JEFF TRENT, representing self, Anchorage, Alaska, stated support
for SB 125. He said their son Chase embodied the spirit of
Alaska. He was developing five acres of homestead land and he
loved bringing home the wild bounty of Alaska and sharing with
those who were unable to harvest for themselves. He was always
ready to stand up and speak out for what he believed, he helped
those who were less fortunate, and was always ready to try to
right wrongs. He asked the committee to support SB 125 in his
son's spirit.
4:38:05 PM
MARK RICHARDS, Executive Director, Resident Hunters of Alaska,
Fairbanks, Alaska, stated support for the intent of SB 125 and
extended condolences to the Bowerson family and friends. He said
his reason for testifying was to make two points. The first
point is that the Board of Game and/or the commissioner already
has authority under 5 AAC 92.050 to transfer certain permits. He
added that he would be happy to help the Bowersons draft and
submit a proposal to the Board of Game that asks the board to
exercise its authority to make the transfer.
MR. RICHARDS said the second point is that the proposed
amendment to AS 16.05.420(c) in Section 2 is unnecessary. It
applies to a locking tag that a deceased hunter had purchased,
and it only applies to some brown bear and musk ox hunts.
He thanked Senator von Imhof for sponsoring SB 125.
4:40:20 PM
TERESA CAMPOAMORE, representing self, Anchorage, Alaska, said
the Bowersons are family and they all spoke eloquently about
Chase and his love of Alaska. She said it was difficult when
Chase's mother received the news her son had been killed. Then
when she received the news that the hunting permit could not be
transferred, it was another blow. She thanked the sponsor and
the committee for considering the bill.
4:41:47 PM
CHAIR REVAK, after discerning no one else wished to comment,
closed public testimony on SB 125.
CHAIR REVAK offered his understanding that a legislative fix was
necessary and advised that he spoke with the sponsor about
offering a conceptual amendment to make the bill retroactive.
4:42:32 PM
At ease
4:44:35 PM
CHAIR REVAK reconvened the meeting.
4:44:41 PM
SENATOR VON IMHOF moved conceptual Amendment 1 that states the
following:
This bill will be retroactive to apply to draw permits
awarded for the 2021 hunting season.
4:44:53 PM
CHAIR REVAK found no objection and conceptual Amendment 1
passed. Finding no further amendments, questions, or comments,
he solicited a motion.
4:45:20 PM
SENATOR BISHOP moved to report SB 125, work order 32-LS0626\B as
amended, from committee with individual recommendations and
attached fiscal note(s).
4:45:39 PM
CHAIR REVAK found no objection and CSSB 125(RES) was reported
from the Senate Resources Standing Committee.
4:45:50 PM
At ease
SB 113-EXTEND FISHERY RESOURCE LAND. TAX CREDIT
4:47:39 PM
CHAIR REVAK reconvened the meeting and announced the
consideration of SENATE BILL NO. 113 "An Act extending the
fishery resource landing tax credit for certain taxpayers that
harvest fishery resources under the provisions of a community
development quota; providing for an effective date by amending
the effective date of sec. 36, ch. 61, SLA 2014; and providing
for an effective date."
4:48:00 PM
SENATOR DONNY OLSON, Alaska State Legislature, Juneau, Alaska,
sponsor of SB 113, explained the bill extends the termination
date of the fishery resource tax credit. This will allow the
Western Alaska Community Development Quota (CDQ) Program to
continue its essential function to many of Alaska's rural
coastal villages. The program is based on the landing tax credit
for fish, which provides economic development in Western Alaska.
He reminded members that they heard and passed an identical bill
last year, but it did not make it through the process before the
legislature adjourned due to the COVID-19 pandemic. The sunset
was in 2020 and SB 113 seeks to revive and extend the program to
2030. He noted who was available to speak on the bill and
deferred further introduction to Mr. Truitt.
4:49:15 PM
KEN TRUITT, Staff, Senator Olson, Alaska State Legislature,
Juneau, Alaska, stated the bill last year was a sunset extension
bill. This year SB 113 is identical in form, and it extends the
Western Alaska Community Development Quota Program to December
31, 2030.
4:49:51 PM
SENATOR VON IMHOF described SB 113 as fairly simple and a good
bill. She paraphrased the final paragraph of the sponsor
statement that read as follows:
The Department of Revenue and Legislative Finance
Division states that the legislative intent has been
met and recommended continuation of the program
(January 2019 Indirect Expenditure Report, page 14).
The estimated Revenue Impact for FY2013- FY2017 was an
average of $553,558.60, while no revenue is foregone
by the state. This tax credit program continues
serving its purpose by attracting donations each year
to Alaska nonprofit corporations that are dedicated to
continually improving our fisheries.
4:50:09 PM
CHAIR REVAK opened public testimony on SB 113.
4:50:37 PM
NORM VAN VACTOR, President and Chief Executive Officer, Bristol
Bay Economic Development Corporation (BBEDC), Dillingham,
Alaska, thanked the sponsor for introducing SB 113 to extend the
sunset date for the fisheries landing tax credit for taxpayers
that harvest resources under the provisions of the Community
Development Quota Program. He related that BBEDC was one of the
six Alaska CDQ corporations; it represents 17 coastal
communities.
MR. VAN VACTOR stated the CDQ Program provides Alaska
communities along the Bering Sea coast with harvest quotas in
the federal water fisheries of the exclusive economic zone
(EEZ). The returns are invested in the fisheries, fisheries
programs, and regional development programs to provide
employment and educational opportunities for community
residents.
MR. VAN VACTOR explained that BBEDC's for-profit fishing
partners who are harvesting the CDQ quota are eligible to
participate in the tax credit program. BBEDC relies on this
program to supplement the Bristol Bay Science and Research
Institute and BBEDC's collaborative work with ADF&G. He said
these efforts are critical in providing stable research funding
that directly benefits the state, region, and health of the
salmon resource. Extending the program to 2030 would provide
stability for long term planning in the region and further
solidifies the collaborative work with ADF&G and other members
of the Bristol Bay collaborative.
4:52:58 PM
JENNIFER WILLIAMS, Government Affairs, Yukon Delta Fisheries
Development Association (YDFDA), Anchorage, Alaska, stated the
YDFDA is the CDQ entity that represents 3,400 residents from six
communities in the Yukon Delta. The CDQ program provides fishery
and economic benefits to resident fishermen, their families, and
the entire region, which is one of the most economically
challenged in the U.S. She related that YDFDA uses the Fishery
Resource Landing Tax Program to offset the amounts spent
annually to support fishery research and monitor studies on the
Yukon River in collaboration with ADF&G. Area residents are
employed to every extent possible. She described the different
test fishing and monitoring activities on the Lower Yukon that
the credits help pay for and noted the data from these test
fisheries are used to predict both commercial and subsistence
openings. She emphasized the value of this scientific
information to both ADF&G and the economic wellbeing of the
region. She expressed appreciation for this well-administered
program and urged the legislature to extend the sunset date.
4:56:04 PM
HEATHER MCCARTY, representative, Central Bering Sea Fishermen's
Association (CBSFA), St. Paul, Alaska, stated CBSFA is one of
the six CDQ groups and the one that represents St. Paul in the
Pribilof Islands. She said the community depends on both the
small boat halibut fishery and the crab fishery in the Bering
Sea, and has relied heavily on the program since inception. She
related that CBSFA has not only conducted a great deal of
research on both halibut and crab, they also have been able to
fund a college scholarship program. She stated hearty support
for SB 113 and the extension of the tax credit program.
4:57:13 PM
ANGEL DROBNICA, representative, Aleutian Pribilof Island
Community Development Association (APICDA), Juneau, Alaska,
stated APICDA represents six remote communities in Southwest
Alaska and is one of the six CDQ entities whose mission is to
increase direct participation in the Bering Sea and Aleutian
Islands fisheries, and help develop a sustainable fisheries-
based economy. She explained APICDA uses the revenue generated
from its quota holdings and fisheries investments to create
jobs, build infrastructure, provide scholarships and workforce
training, and help support a range of local initiatives and
projects with grant programs to eligible community entities. She
stated support for SB 113 and the continuation of the Resource
Landing Tax Credit Program. Under this program, APICDA's harvest
partners have the opportunity to attribute a portion of their
landing tax liability from the harvest of the CDQ quota for
Pacific fisheries investments. She said this has been a very
meaningful program and APICDA encourages the committee to
advance the bill.
4:58:38 PM
CHAIR REVAK discerned that no one else wished to comment, and
closed public testimony on SB 113.
CHAIR REVAK found no questions or comments and asked the will of
the committee.
4:59:06 PM
SENATOR VON IMHOF moved to report SB 113, work order 32-
LS0719\A, from committee with individual recommendations and
attached fiscal note(s).
4:59:21 PM
CHAIR REVAK found no objection and SB 113 moved from the Senate
Resources Standing Committee.
SB 59-SALTWATER SPORTFISHING OPERATORS/GUIDES
5:00:03 PM
CHAIR REVAK announced the consideration of SENATE BILL NO. 59
"An Act relating to salt water sport fishing operators and salt
water sport fishing guides; and providing for an effective
date."
5:00:17 PM
At ease
5:00:51 PM
CHAIR REVAK reconvened the meeting and asked for a motion to
adopt the committee substitute (CS). He related that the CS
makes no substantive changes; rather, it conforms the governor's
bill to Legislative Legal Services drafting conventions.
5:01:09 PM
SENATOR BISHOP moved to adopt the work draft CS for SB 59, work
order 32-GS1608\B, as the working document.
5:01:26 PM
CHAIR REVAK found no objection and version B was adopted.
5:01:43 PM
DOUGLAS VINCENT-LANG, Commissioner, Alaska Department of Fish
and Game, Anchorage, Alaska, reminded the members that this
committee heard the bill last year but did not act on it because
the legislature adjourned early due to COVID-19. He explained
that the bill reinstates the salt water licensing and reporting
requirements, but does not reinstate the fresh water licensing
and reporting requirements.
COMMISSIONER VINCENT-LANG explained that the legislature first
adopted the sport fishing guide and operator licenses in 2003-
2004 and these remained in effect until the sunset on December
31, 2014. Both fresh and salt water guides initially urged
passage of the legislation as a means of professionalizing the
industry. Just the salt water licensing and reporting
requirements were reinstated during the 2015-2016 legislative
session with a sunset of 2018. He said the bridge funding the
legislature provided after the 2018 sunset is gone and there is
no legislation in place to collect the fees to pay for the
marine log book program. Nevertheless, the department has
continued the log book program under the registration program
that was adopted through the Alaska Board of Fisheries.
5:04:21 PM
COMMISSIONER VINCENT-LANG stated the log book data is critical
to fulfill Pacific Salmon Treaty obligations and to inform
decisions by the International Halibut Commission, the North
Pacific Fishery Management Council, and the Board of Fisheries.
The fees that are collected will be used to manage charter
fisheries in Alaska that contribute more than $1.5 million to
the state's economy. He concluded that the department sees SB 59
as a necessary tool to fund and manage salt water fisheries.
5:05:40 PM
SENATOR KAWASAKI asked how the log book program was funded
initially.
COMMISSIONER VINCENT-LANG explained that the program initially
was funded through the legislation that licensed fresh water and
salt water guides. When the program was reintroduced for just
salt water, the guide and operator licensing fees paid for the
log book program. When that was sunset in 2018, the legislature
provided some bridge funding for the program. That funding ran
out and the department is now using department funds to continue
the log book program.
5:06:30 PM
SENATOR KIEHL asked if there was any possibility that this
applies to bare boat charters.
COMMISSIONER VINCENT-LANG answered not at this time.
CHAIR REVAK asked Ms. Hanke to walk through the sectional
analysis.
5:06:56 PM
RACHEL HANKE, Legislative Liaison, Alaska Department of
Fish and Game, Anchorage, Alaska, presented the sectional
analysis for SB 59 [Original punctuation provided]:
Section 1:
Establishes license fees for saltwater guides and
operators.
• Guide license-$200
• Operator license-$400
• Operator and guide combined license-$400
Section 2:
AS 16.40.262-provides stipulations for the salt water
operator license and defines the license type.
Section 3:
AS 16.40.272-provides stipulations for the salt water
guides and combined license and defines both license
types.
Section 4: AS 16.40.282-establishes reporting
requirements for salt water guides and operators.
Section 5:
AS 16.40.292-establishes penalties for violations the
chapter.
Section 6:
AS 16.40.301-defines "saltwater sport fishing guide"
and "salt water sport fishing guide services."
Section 7:
Adds salt water sportfishing operator and guide
license to AS 25.27.244(s)(2) which defines "license."
Section 8:
Effective date of January 1, 2022
5:08:54 PM
CHAIR REVAK announced he would hold SB 59 in committee for
further consideration.
5:09:15 PM
There being no further business to come before the
committee, Chair Revak adjourned the Senate Resources
Standing Committee meeting at 5:09 p.m.