HOUSE BILL NO. 247 "An Act relating to the fish and game fund; establishing the sport fishing enhancement surcharge; relating to the repeal of the sport fishing facility surcharge; providing for an effective date by amending the effective date of sec. 21, ch. 18, SLA 2016; and providing for an effective date." 10:37:25 AM Co-Chair Johnston OPENED Public Testimony. Co-Chair Johnston CLOSED Public Testimony. Co-Chair Johnston asked for a brief reintroduction to the bill. TOM TAUBE, DEPUTY DIRECTOR, DIVISION OF SPORT FISHERIES, DEPARTMENT OF FISH AND GAME (via teleconference), relayed that the bill would allow the Department of Fish and Game (DFG) to continue to collect a reduced sport fishing license surcharge beyond the date it was set to expire. The sport fishing surcharge was collected in order to pay off the bonds issued to construct the Ruth Burnett Sport Fish Hatchery in Fairbanks and the William Jack Hernandez Sport Fish Hatchery in Anchorage. The surcharge also funded Chinook and Coho salmon production in Southeast Alaska, which would be lost when the surcharge sunset. The statute authorizing the bonds and surcharge would sunset on January 1 of the calendar year following the repayment of the bond obligations (at the end of the current year). Mr. Taube elaborated that the bill would retain the statute authorizing DFG to collect the surcharge, but at a reduced rate. The revenue from the surcharge would be used for ongoing maintenance and repairs at state sport fish hatchery facilities as well as continued enhancement of sport fisheries in Southeast. 10:39:27 AM Representative Wool asked if there had been discussion about not reducing the surcharge. He understood the bond had been paid off. He noted testimony from the previous hearing on the bill that a reduced number of nonresident licenses was projected, especially in the current year. He cited Mr. Taube's testimony that the money would be used for other maintenance projects and not for the initial hatcheries that were built. He asked if there had been discussion about leaving the fee at the current rate. Mr. Taube responded that at the time the surcharge had been implemented, DFG had made commitments to discontinue it after the bonds were paid off. He relayed that when the bill had been conceived, DFG had realized there were components of the Fairbanks and Anchorage hatcheries that were not completed at the time of construction due to rising construction costs in the mid-2000s. He referenced a backup well at the Fairbanks hatchery and some effluent filtering at the Anchorage hatchery as examples. Due to the high cost of the investment of the hatcheries, the department had decided to go with a reduced amount to try to partially remain with the commitment made when the bonds were first created. Co-Chair Johnston remarked that in the past the department had been asked if any of the funds had been used for operations. Mr. Taube replied that the entire surcharge had been directed to paying off the bonds themselves. The component of the bill would be used for covering maintenance staff, replacing hatchery vehicles, and for components of the hatcheries that had not been put in place when the hatcheries were constructed. He reported that daily operations were currently being covered by [federal] Dingle Johnson funds. 10:42:25 AM Representative Carpenter asked if there had been any discussion about revenue alternatives in light of the fact that the fee was scheduled to sunset and the bill would extend the fee and use the funds for a different purpose than originally intended. He asked if there were alternatives about how to continue with maintenance and repairs at the hatcheries. Mr. Taube replied that DFG would be continuing to pay for the operations as it did via Dingle Johnson funds. He elaborated that for larger components, DFG would likely come to the legislature for capital improvement project funds to make necessary upgrades to allow the hatchery to continue functioning. Representative Carpenter opined that the conversations should continue to take place in an operational sense. He stated that the people had paid a tax via a license fee. He stated that the purpose for the fee was gone and the people's money should be returned to them. He believed that if the legislature needed to fund maintenance, the conversation should take place. 10:44:22 AM DAVID RUTZ, DIRECTOR, DIVISION OF SPORT FISHERIES, DEPARTMENT OF FISH AND GAME (via teleconference), provided a brief narrative about items that had been left out of the bill and items included in members' bill packets. He stressed that the hatcheries were stocking 270 locations throughout Alaska and they supported hundreds of thousands of angler-days, a sport fishing effort that generated over $5,000 to the Alaskan economy. He elaborated that most of the stocking areas were baren lakes that were once void of fish population - there had been no fishing opportunities in those areas previously. The vast majority of the angling efforts on stocks were Alaskan residents and most of the stocking locations were within close proximity of major population centers where anglers could access excellent fishing for minimal out of pocket cost. He noted it was a great benefit. The stocking efforts also reduced effects on wild fish populations, many of which were experiencing times of low production. He underscored it was a great driver for reducing the division's dependence on General Fund monies and would help the department with anticipated shortfalls caused by reduced non-resident license fees resulting from COVID-19. He reported that the division was fully supportive of the legislation. 10:46:02 AM Co-Chair Foster MOVED to REPORT CSHB 247 (FSH) out of committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSHB 247(FSH) was REPORTED out of committee with seven "do pass" recommendations and three "no recommendation" recommendations and with one new fiscal impact note from the Department of Fish and Game. 10:46:42 AM Representative Tilton MOVED to bring back HB 259 [2020 legislation proposed by the governor to pay a 2019 supplemental Permanent Fund Dividend] for additional discussion. She relayed that the bill would pay the past Permanent Fund Dividend (PFD) back to the people. 10:47:07 AM AT EASE 10:48:00 AM RECONVENED Co-Chair Johnston OBJECTED. Representative Tilton believed it would be prudent to bring HB 259 back before the committee because the legislature was looking at a long-term economic stabilization plan. She highlighted that the committee heard from businesses the previous day that talked about the need for an influx of cash into communities. She elaborated that committee members had also heard from individuals. She shared that she had received numerous emails with concerns about how they would deal with daily living expenses. Additionally, the governor had come forward with an economic stabilization plan that included HB 259. She stated it was dependent on the legislature to make decisions on the issues. She thought the bill could be used as a vehicle to consider and discuss the stabilization of the economy. 10:49:16 AM Representative Sullivan-Leonard concurred with Representative Tilton. She stated that the committee was finally not hearing something related to health and social services and was having a discussion about fiscal policy and the budget. She elaborated that legislators had heard loud and clear from across the state that many residents were looking for back PFD funds for support. She recognized there had been discussion with regard to federal funds coming through, but she believed the quickest route to get funds to the public was through the PFD. She supported Representative Tilton's motion. Co-Chair Johnston MAINTAINED her OBJECTION. 10:50:04 AM AT EASE 10:50:24 AM RECONVENED Co-Chair Johnston discussed her objection. She stated that while she appreciated the comments by Representative Tilton and Representative Sullivan-Leonard, she objected because she believed the legislature would be looking at a comprehensive relief bill that was currently being worked on. She stated that the subject in HB 259 could be part of that legislation, but she did not yet know. She did not believe a supplemental PFD was the only part of relief. She had concerns about what kind of relief the state would provide because it was not an issue of a month's time. She stated it could be an issue of 18 months to two years. She wanted to make certain the state had the funds and the tools to accommodate it. She emphasized the importance of cash for the state's daily needs. She elaborated that most of the state's retail and service organizations were currently closed. She was concerned about their economic stability going forward and she wanted to ensure that any funding provided by the state went to Alaskan businesses, and residents in the most need. Representative Josephson associated himself with Co-Chair Johnston's remarks. He understood the importance of cash; however, the numbers were still the numbers. He appreciated Co-Chair Johnston's thoughtful comments. 10:52:19 AM Representative Tilton appreciated Co-Chair Johnston's comments as well and agreed on the importance of being thoughtful in developing a comprehensive package. She highlighted that the legislature had a stabilization plan for consideration, and she had not seen something come from the legislature itself. She remarked that bringing HB 259 back was not necessarily about the dividend itself, but it could be used as a vehicle to have the discussion. She highlighted that the committee had heard testimony from the business community the previous day and had received testimony from the public indicating a strong need for cash. She reasoned that businesses would not remain stable or open even with innovative ways to alter their business style. She pointed out that if people did not have cash in their pockets, businesses would not be stabilized. Her overall concern was for the state's residents. She underscored the need to look at how the state would get money out to the economy during an unprecedented time. Co-Chair Johnston thanked Representative Tilton for her remarks. She stated that everyone on the committee was very concerned about everyone in Alaska. She MAINTAINED her OBJECTION. A roll call vote was taken on the motion to bring HB 259 before the committee. IN FAVOR: Sullivan-Leonard, Tilton, Carpenter, OPPOSED: Wool, Josephson, Knopp, LeBon, Ortiz, Johnston, Foster The MOTION FAILED (3/7). Co-Chair Johnston indicated the meeting would be Recessed to a Call of the Chair. [See separate minutes dated 3/23/20 11:33 A.M.] ^RECESSED 10:55:03 AM