HB 246-SPORT FISH GUIDE LICENSES  10:52:07 AM CHAIR EDGMON announced that the final order of business would be HOUSE BILL NO. 246, "An Act relating to the licensing and regulation of sport fishing operators and sport fishing guides and licensing and registration of sport fishing vessels; and providing for an effective date." 10:52:22 AM JAMES ELLIS, staff to Representative Mark Neuman, Alaska State Legislature, informed the committee Representative Newman has offered an amendment to the bill; however, as the sponsor, Representative Neuman has requested that the committee address only the bill at this time so that the amendment can be considered by the next committee of referral. Mr. Ellis introduced the bill paraphrasing from the sponsor statement, which read as follows: HB 246 extends Alaska's sport fish guide licensing and reporting program for one year. The data collected through this program has been an important tool for the proper management of sport fisheries through a better understanding of our fish stocks and their harvest. In addition, the licensing has ensured a standard for professionalism and responsibility for sport fish businesses and guides, benefiting both consumer and businesses alike. The data collected through the reporting program is important in Alaska's exemption from the National Saltwater Angler Registry which will prevent Alaskans from purchasing a certificate of registration. 10:54:53 AM REPRESENTATIVE BUCH pointed out HB 246 may become a companion bill to SB 294 and asked for an explanation. MR. ELLIS expressed his understanding that SB 294 is intended to be "a repeal also." 10:55:53 AM JENNIFER YUHAS, Director, Public Communications/Legislative Liaison, Alaska Department of Fish & Game (ADF&G), informed the committee that HB 246 is the priority legislation for ADF&G this session. She recalled that similar legislation was passed by the committee last year without the one-year sunset clause. In fact, the sunset was added by amendment in the House Resources Standing Committee. Ms. Yuhas reiterated the purposes of the bill, and added that the bill will ensure basic standards for sport fishing guides for the benefit of the public. She pointed out the department has attached a zero fiscal note indicating that ADF&G subsidizes the costs associated with this legislation. 10:57:22 AM CHARLES SWANTON, Director, Division of Sport Fish, Alaska Department of Fish & Game (ADF&G), explained the department supported the original legislation that was passed in 2004, and effective in 2005, enacting three main elements: collecting information on guides and their activities; establishing minimum standards, such as safety and liability insurance, for these business activities; providing a comprehensive and credible data base on guided sport fishing activities for regulatory agencies such as the Alaska Board of Fisheries, the International Pacific Halibut Commission, and the North Pacific Fishery Management Council. Mr. Stanton pointed out that fees are charged as follows: $100 for a combination business owner/operator; $100 for a business; $50 for a guide. He explained that the Division of Sport Fish has three primary harvest and data collection programs: the statewide harvest survey provides a comprehensive catch harvest level for various fisheries; surveys of anglers in intensive fisheries; guide licensing and logbooks. At the request of ADF&G Commissioner Lloyd, the programs are being modernized so that logbook data and the purchase of licenses can be recorded electronically, and he described the possibilities thereof. 11:02:30 AM REPRESENTATIVE MUNOZ asked how the charter industry feels about the fee structure. 11:02:50 AM MR. SWANTON restated the fee structure. Currently, income from license fees is about $242,000, and the program costs about $437,000 to administer. The difference of $195,000 is offset by sport angler license fees. REPRESENTATIVE MUNOZ remembered there was discussion about raising the fees. 11:04:04 AM MR. SWANTON indicated that the fees have not changed. In response to Representative Buch, he said that electronic forms will accelerate the process to the point where his division may be able to provide fish harvest data within one to two weeks of harvest, rather than eight months. 11:05:04 AM REPRESENTATIVE BUCH surmised the passage of this legislation means the program will take effect this summer. MR. SWANTON stated the intention is to institute the scan-able logbook sheets for saltwater in 2010, followed by logbook sheets for freshwater in 2011. 11:05:55 AM CHAIR EDGMON opened public testimony. 11:06:10 AM MELVIN GROVE, Charter Operator, informed the committee he operates a charter boat in Valdez, is affiliated with the Prince William Sound Charter Boat Association, and is testifying on his own behalf. Mr. Grove stated his adamant opposition to HB 246. Although he is not against data collection, he is opposed to the cost of the license. He opined that the program was "instituted as a license with a disguise of paying for the data collection under the license requirement." In 2004, the logbook program cost $80,000, and now the cost is nearly $450,000. Furthermore, the sensors and surveys for data collection are paid for by the fishing license revenue from his clients and, as an operator, he is charged a fee to support the logbook program; this appears to be "double-dipping" by the department. Mr. Grove expressed his hope that electronic improvements to the reporting program may lead to a reduction in fees. Finally, he questioned the benefit of data collection to the charter operators; in fact, there has not been an increase in the allotment of fish and the release of data to federal authorities has been detrimental to the charter operators. Mr. Grove restated his opposition to the bill; however, should the bill pass, he encouraged the committee to retain the 2012 sunset clause. 11:11:05 AM REPRESENTATIVE MUNOZ inquired as to the federal requirements with which charter operators must comply. 11:11:13 AM MR. GROVE said a federal limited entry program is being instituted in 2011, requiring a permit to fish for halibut. He predicted 38 percent of the halibut charter operators will be put out of business because of the limited entry program. REPRESENTATIVE MUNOZ asked whether there is a compensation component. MR. GROVE said no. 11:12:30 AM KEN LARSON, Secretary, Prince William Sound Charter Boat Association, stated that the members of his organization and sister organizations want the record to reflect their opposition to HB 246. While recognizing the need for the guide and logbook program, the program should not be funded as it is. Additionally, many members support the termination or sunset clause of the guide license fees. He recommended that ADF&G "look for other funding sources, like sport fish licenses, or other internal funds, because ... the economy has definitely tanked; ... things like the one-fish limit down in Southeast, the limited entry program which will put 38 percent of the charter, halibut charter operators out of business in 2011, and ... the program has only generated about 55 percent of the operating expense." Mr. Larson referred to the fiscal note and pointed out that the program received no federal funds from the National Oceanic and Atmospheric Administration (NOAA) to pay for the logbook data from which it benefits. Charter boat operators pay $100 for the annual state business license and also buy individual sport fishing licenses; in fact, the national registry only costs $25 per angler. As NOAA is handling the halibut limited entry permit program, Mr. Larson said he expects there will charges similar to those assessed to commercial fisherman. He stressed the inequity of requiring charter operators to purchase a state business license, a guide license, and a sport fishing license, when commercial fishermen are not required to do the same. Mr. Larson encouraged the committee to allow the legislation to "sunset." 11:15:59 AM CHAIR EDGMON closed public testimony, and announced that HB 246 would be held.