HB 93-KENAI DIP NET FISHERY PERMIT FEE CO-CHAIR SCALZI announced that the next order of business would be HOUSE BILL NO. 93, "An Act establishing the permit fee for the personal use dip net fisheries for the Kenai River and the Kasilof River; and providing for an effective date." Number 0880 REPRESENTATIVE KEN LANCASTER, Alaska State Legislature, sponsor of HB 93, mentioned a question raised [by Representative Fate] at the previous hearing regarding the disposition of the [dip net] fee. He pointed out a letter in the committee packet from Kevin Brooks [which explains that the dip net] fees would go [into the fish and game fund and would remain available pending subsequent appropriation by the legislature.] [There was motion to adopt HB 93(FSH), Version 22-LS0431\J, as a work draft; however, it was later clarified by Co-Chair Scalzi that the version the committee wanted before it was HB 93, Version 22-LS0431\C, Utermohle, 2/17/01, which had already been adopted and amended on March 26, 2001.] Number 0961 KEVIN BROOKS, Director, Division of Administrative Services, Alaska Department of Fish and Game (ADF&G), came before the committee to answer the question regarding the handling of revenue. He explained that under AS 16.05.110[(a)(1)], the revenue would be deposited into the fish and game fund. Since fish and game funds are already excluded [from unrestricted general fund] program receipts [under AS 37.05.146(b)(4)(F)], the second section of the bill is not necessary, because it would already be part of the fish and game fund exclusion. Number 1010 REPRESENTATIVE FATE stated that he appreciated Mr. Brooks' response. He asked Mr. Brooks to confirm that the request from Kenai for the use of the restricted funds would follow along with the fish and game restricted fund guidelines. He added a "thank you" to Representative Lancaster. MR. BROOKS answered affirmatively. Number 1075 ROD ARNO, Representative, Alaska Outdoor Council (AOC), mentioned a letter [included in the committee packet]. He thanked Representative Lancaster for introducing the bill, because human waste, trash, and trespassing are a problem; however, he stated that AOC is concerned about setting a precedent of adding a fee for a personal use fishery, instead of going through ADF&G's capital budget request for facilities, or for access issues. Mr. Arno said right now, one of the Division of Sport Fish's missions is to manage activities associated with personal use fisheries. He added, "Here's an opportunity ... to use the Dingle/Johnson federal money, as well as the fish and game money that comes in, for these projects." He explained that it would be "put together through a process on a budget request to the department." MR. ARNO stated that 275,000 nonresident sport fishermen brought in $9 million to the fish and game fund in 2000, whereas approximately 115,00 resident sport fishermen brought in only $2.4 million. He made the point that there is money available through nonresident sport fishermen, Dingle/Johnson money, and the fish and game fund to support projects that would mitigate "these problems," as opposed to having an additional $10 fee, which [AOC] considers just as "food tax." Mr. Arno said as an example, Alaskan residents are not charged an additional price for Tier II caribou permits, even though the management of those herds is "a different ... piece of the component." MR. ARNO said there are two different ways in which money is available. He mentioned the CARA [Conservation and Reinvestment Act] program, which uses fish and game funds as part of the matching fund to that. He said $300,000 of CARA money has been allocated to the [Division of Sport Fish] for education, but there is no reason some of that money could not be used to provide facilities, as it is in other areas of the state. Mr. Arno added that the state is using only $1.5 million of the $2.4 million CARA money available. MR. ARNO also suggested the Habitat and Restoration Division as a source of money, stating that its goal is to protect fish and wildlife habitat and to protect the public use of fishing resources. Currently, the Habitat and Restoration Division is investing money into several projects, including the Kenai River salmon habitat restoration project. He spoke of the recent approval of HB 61, which allows the habitat and restoration grant to be made directly to the department. MR. ARNO stated that the AOC feels there is genuine concern with the litter; there are other ways to take care of that, as opposed to adding a food tax [by charging] a special fee to these dipnetters. Number 1390 EDWARD MARTIN testified via teleconference in opposition to HB 93. He referred to Article VIII, Section 3, of the Alaska Constitution, which reads: Wherever occurring in their natural state, fish, wildlife, and waters are reserved to the people for common use. MR. MARTIN said he recognizes the problem with the management of [the Kenai dip net fishery]. He mentioned the troopers or "brown shirts," saying, "It's getting to the point where most of these agencies get a big sum of money and they aren't accountable for what ... their mission statement is, or at least maybe they feel they're doing the best they can." Mr. Martin suggested that plenty of people in enforcement are not doing much during the winter months and could reroute some hours to cover the two- or three-month personal use fishery period. MR. MARTIN said he looks at this as a constitutional issue and as a management issue "under a mission statement of ... who's responsible to do the management enforcement." Regarding detriment to the [river] banks, he said many people are aware of what's going on right now. He said: If we can't get some control of that, we can't have some volunteers in this system, because, to be honest with you - some of that being ... a constitutional right for subsistence - I believe there's ... good, honest people, good Alaskans that'll go out there and could work within a controlled atmosphere to see that we aren't abusing ... it, whether nonresident or residents. Number 1555 CHRIS GARCIA testified via teleconference in support of HB 93, telling the members that they were not charging enough. He said he has witnessed some of the atrocious problems [in the Kenai dip net area]. He stated that the mayor of Kenai [Peninsula Borough] had requested funding from the state for this problem and was told there was no money available. He said a lot of nonresidents who are using the fishery shouldn't be. He stated his belief that imposing this fee will help control, patrol, and improve the fishery for the state. Number 1618 DREW SPARLIN, testifying via teleconference, said he supports HB 93 for many reasons, most of which had been mentioned previously. A resident within one-quarter mile of the Kenai dip net area, Mr. Sparlin stated that he has witnessed "a very large amount of abuse and disrespect." He added that he did not think anyone would argue [against] there being a sanitation problem in the area. MR. SPARLIN questioned the necessity of using "brown shirts" to monitor the fishery, as was suggested in previous testimony; however, he said monitoring by temporary, seasonal hires - for the purpose of checking licenses and documenting harvest - would be of some value. He agreed with earlier testimony that there is abuse by nonresidents. Mr. Sparlin acknowledged that Representative Lancaster "hung his neck out" on this issue, but said he is right to address it. People who are going to utilize the resources don't want to tap the permanent fund or [pay for the fishery with] taxes, and a way to pay for [the management of the Kenai dip net fishery] must be found. Number 1737 REPRESENTATIVE FATE asked Mr. Brooks if, contrary to previous testimony, other funding sources could adequately be used to take care of the same things for which the proposed fee is intended. MR. BROOKS replied that there are funding sources within [ADF&G] that could legally be used, but it is a matter of the allocation of scarce resources. He said the department has projects within the Division of Sport Fish budget, and it would have to make the call that this is of greater importance than the other management work being done. He suggested that the question might better be addressed to Mr. Hepler. Mr. Brooks said there is no legality issue; general funds could be used, for instance, or fish and game funds currently in the budget. He said, "I think the attempt here was to try [to] identity an additional source of revenue for this specific purpose, and not negatively impact an existing project that might be going on." REPRESENTATIVE FATE asked if fees are ordinarily set by statute, or are ever set by the board. MR. BROOKS answered that every sport fishing or hunting license fee is set in statute. The permit fees are more recent; for example, the Chitina dip net fee is set in statute. Number 1855 REPRESENTATIVE CHENAULT asked how and why the king salmon stamp, required to fish for king salmon in the Kenai River, was instituted. He asked where that money goes. MR. BROOKS responded that the stamp has existed since the early to mid-1990s. He said it predates his work at the department, but his understanding is that chinook salmon are recognized as trophy fish, and certain management requirements go along with that. Mr. Brooks told the committee that the license revenue goes into the fish and game fund, and is used to fund the Division of Sport Fish's budget; however, there is more funding allocated to king salmon management than is generated by the stamp alone. [A one-minute at-ease was called.] Number 1951 CO-CHAIR SCALZI clarified that before the committee was HB 93, version 22-LS0431\C, Utermohle, 2/27/01 [as amended]. REPRESENTATIVE CHENAULT moved to report HB 93, version 22- LS0431\C, Utermohle, 2/27/01 [as amended], out of committee with individual recommendations and the accompanying fiscal note. There being no objection, CSHB 93(RES) was moved out of the House Resources Standing Committee.