CS FOR SENATE BILL NO. 283(RES) "An Act establishing the shore fisheries development lease program account and the timber receipts account; relating to the accounting for and appropriation of revenue from the state land disposal program, the shore fisheries development lease program, and the state timber disposal program; and providing for an effective date." BOB LOEFFLER, DIRECTOR, DIVISION OF MINING, LAND AND WATER, DEPARTMENT OF NATURAL RESOURCES testified in support of the legislation. The legislation creates a land disposal income fund, which would be a statutory designated program receipt fund for the purpose of land disposal. The legislation also creates separate funds for shore fisheries and timber harvest receipts. The income fund would allow income generated from the 1,200 leases to supply a level of services that the fisherman and department believe are deserved, to run the program. A moderate land disposal program would be funded from revenues generated by land disposals. The income would pay for the cost and allow programs to be stabilized. The same would apply to the timber harvest program. In response to a question by Co-Chair Therriault, Mr. Loeffler observed that the shore fisheries program was cut from $300 to $100 thousand dollars. This was not enough to run the program. Income from the leases would provide $300 thousand dollars to run the program. In response to a question by Co-Chair Therriault, Mr. Loeffler observed that the department recommended a self- executing registration process to deal with budget reductions. The fisherman objected to the self-executing registration process and pointed out that it was a reductions of services below the revenues from the leases. SANDY UMLAUF, PRESIDENT, UGASHIK SET NETTER ASSOCIATION, Kenai testified via teleconference in support of the legislation. She observed the Association represents approximately 65 set net permits. The legislation reinstates a self-sustaining, income producing program that offers organization and stability for statewide shore fish leases and provides a means for conflict resolution. The program has an income of $350 thousand dollars from leases and a cost of $300 thousand dollars. She observed that set net sites are frequently hotly contested. KARL KIRCHER, EXECUTIVE DIRECTOR, KENAI PENINSULA FISHERMAN'S ASSOCIATION, KENAI testified via teleconference in support of SB 283. He observed that AS 38.05 stipulates that the director shall establish a reasonable rent structure for shore fishing development leases equal to the administrative cost for processing the leasehold application. He observed that the program has generated more revenue than it has cost to operate the program since 1993. He stressed that fees should be reduced if the level of service is reduced. He spoke against the self-executing registration. PAUL SHADURA, KENAI testified via teleconference in support of section 3 of SB 283. His family has set netted for over 60 years. ROGER KUCHENBECKER, MATSU testified via teleconference in support of the legislation. He has set-netted for 13 years. He spoke in support of full funding of the shore fisheries lease program. He stressed that the program more than pays for itself. DAN CHALLUP, KACHEMAK BAY SALMON PRODUCERS COOPERATIVE, HOMER testified via teleconference in support of the legislation. He hoped that the legislation would protect the program from future budget reductions. In response to a question by Vice Chair Bunde, Mr. Loeffler stated that the program is limited to anyone who owns a valid limited entry permit. In response to a question by Co-Chair Therriault, Mr. Loeffler explained that there is no timber program fiscal note. He noted that the timber program has an erratic history and is difficult to predict. Representative Foster MOVED to report CSSB 283(RES) out of Committee with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSSB 283(RES) was REPORTED out of Committee with a "do pass" recommendation and with two fiscal impact note by the Department of Natural Resources, published 3/31/00.