CS FOR SENATE BILL NO. 204(RES) "An Act relating to auctions or raffles for hunting harvest permits and big game tags; and providing for an effective date." 3:04:35 PM Co-Chair Merrick indicated that the committee previously heard the bill on May 10, 2022, and the committee would take up one amendment. She asked for a review of the fiscal note. EDDIE GRASSER, DIRECTOR, DIVISION OF WILDLIFE CONSERVATION, DEPARTMENT OF FISH AND GAME (via teleconference), reviewed the published zero fiscal note for the Department of Fish and Game (DFG) (FN1 (DFG) appropriated to Wildlife Conservation He relayed that there would not be a drain on the state's coffers as a result of the bill. The department expected to bring in significant revenue with the legislation. He furthered that in the prior year the raffle brought in over $1 million, and the department had received revenues of $1 million so far for the current year. 3:06:04 PM Representative Josephson MOVED to ADOPT Amendment 1, 32- LS1319\W.3 (Bullard, 5/11/22) (copy on file): Page 1, line 1, following "permits": Insert ",bear viewing permits," Page 1, following line 3: Insert a new bill section to read: "*Section 1. AS 16.05.130 is amended by adding a new subsection to read: (h) Money accruing to the state from the auction or raffle of bear viewing permits under AS 16.05.343(c) shall be deposited in a separate account known as the nongame conservation account in the fish and game fund. Money n the account shall be allocated to programs relating to wildlife sanctuaries and refuges, fish and wildlife diversity, wildlife viewing, educational programs, and related outreach efforts." Pate 1, line 4: Delete "Section 1" Insert "Sec. 2" Renumber the following bill sections accordingly. Representative LeBon OBJECTED for discussion. Representative Josephson explained the amendment. He indicated that the purpose of the amendment was to direct the proceeds of the raffle to a new account within the existing DFG fund. Funds from the new account could only be spent on programs related to state wildlife sanctuaries, refuges, wildlife viewing, and educational programs. He stated that the sponsor and Mr. Grasser supported the amendment. He noted that the goal of the bill was to increase the fund raising capacity to match federal funds. He reasoned that the amendment would advance the goal because it appealed to raffle customers that wanted to win a permit to view bears at the McNeil River State Game Sanctuary and Refuge. He believed that the amendment would result in increased ticket sales and more revenue. He reported that similar sub-accounts in the Fish and Game Fund in Title 16, AS 16.05 currently existed in statute that directed proceeds to waterfowl, fur bears, and general hunting trapping and fishing. He asked for the committees support. Representative Johnson asked if the fund would be dedicated. Representative Josephson answered in the negative and surmised that it was a designated fund. He added that the language in the amendment mirrored AS 16.05.130 pertaining to the diversion of funds. He restated that similar language currently existed for waterfowl conservation, the sale of resident trapping licenses and general hunting, trapping, and fishing licenses, and the Intensive Management (IM) surcharge. The amendment was aligned with the corollary programs he listed. 3:08:29 PM Mr. Grasser stated that Representative Josephson was correct, and the amendment would add language to the existing statutes for the diversion of funds for management projects. He responded that the Fish and Game Fund was dedicated and was protected by the Constitution and the Statehood Act. He elaborated that the money put into the fund could be used for a diverse number of activities. He noted that the first activity adopted under AS 16.05.130 was for a waterfowl stamp program. He concurred that the amendment aligned with the diversion of funds statute. Representative Johnson asked if the proposed new account would be a subaccount under the dedicated fund. Mr. Grasser answered in the affirmative and added that it would be a dedication of a dedicated fund. Representative LeBon asked to hear from the bill sponsor's staff to confirm the senator was amenable to the amendment. EMMA TORKELSON, STAFF, SENATOR REVAK, confirmed that Senator Revak was supportive of Amendment 1. 3:10:57 PM Representative Josephson reiterated that the division and sponsor supported the amendment. He did not mean to create confusion when he stated it was a designated fund. He maintained that pre-statehood funds were allowed under the Constitution as dedicated funds. He elucidated that the additions to the original Fish and Game Fund statute were made in 1979. 1984, 1994, 1995, 1996, 2005, and 2016. He concluded that the proposal was not prohibited. Representative Carpenter agreed that the fund itself was dedicated. He believed that some of the additional funds into the account were not protected from the sweep. Mr. Grasser was unsure that Representative Carpenters comment was correct. He understood that the Fish and Game Fund was protected in the Constitution and not allowed to be swept. Representative LeBon WITHDREW his OBJECTION. There being NO further OBJECTION, Amendment 1 was ADOPTED. SB 204 was HEARD and HELD in committee for further consideration. Co-Chair Merrick reviewed the schedule for the following morning.